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The Fortescue Metals Group Limited (ASX: FMG) share price is heading north today.

This is despite the iron ore mining outfit not releasing any price-sensitive announcements to the ASX.

At the time of writing, Fortescue shares are swapping hands at $18.24, up 2.3%.

Let’s take a look at what’s happened lately.

Iron ore prices stage a rebound

After falling more than 20% in the past month, iron ore prices have hit support to trade slightly above the psychological US$100 barrier.

According to the Australian Financial Review, the steel-making ingredient is fetching US$104.55 per metric tonne. This represents a gain of around 5.9% from Friday’s close.

Previously, iron ore touched new year-to-date lows after China established a $6 billion nationalised iron-ore company to curb sky-high prices.

The China Mineral Resources Group is expected to become the sole channel for buying imported iron ore from third parties. This includes the big three miners from Australia as well as Vale from Brazil.

Asserting some control over the market would place China in a stronger position to dictate a fairer price for iron ore.

Ultimately, this dragged down investor sentiment, which led to selling pressure for the steel-making ingredient.

Nonetheless, Fortescue shares are making a run today on the back of the latest price ascent. It appears the price of iron ore has found a floor for now ahead of the crucial United States Federal Reserve interest rate decision on Wednesday.

Other shares in miners such BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are up 1.28% and 0.94%, respectively.

For context, the S&P/ASX 200 Resources (ASX: XJR) is in the green by 0.63% to 5,009.4 points.

It’s also worth noting that Rio Tinto’s results will also be out on Wednesday, which could have a flow-on effect on Fortescue’s shares.

Fortescue share price snapshot

A volatile 12 months brought on by COVID-19 and falling iron ore prices has led Fortescue shares to tumble 30%.

Although year to date has been slightly better, despite the current external market challenges, down 7%.

Based on today’s price, Fortescue presides a market capitalisation of approximately $54.9 billion.

The post Why is the Fortescue share price climbing today? appeared first on The Motley Fool Australia.

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More reading

• How might China’s $6b Mineral Resources Group impact the iron ore price?
• What’s going wrong for the Fortescue share price on Thursday?
• Why did the Fortescue share price leap 5% on Wednesday?
• Which ASX rich listers have grown their fortunes over the past year?
• What’s the outlook for the iron ore price in 2023?

Motley Fool contributor Aaron Teboneras 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 Genex Power Ltd (ASX: GNX) share price is taking off on Monday after the company confirmed a $300 million takeover bid and released its latest quarterly update.

The Genex share price launched 51.8% on open to reach 20.5 cents. At the time of writing, it has slipped slightly to trade at 19.5 cents – representing a 44.44% gain.

Let’s take a closer look at what’s driving the renewable energy company’s stock on Monday.

Genex share price takes off on takeover bid

It’s shaping up to be a huge day for the Genex share price, which rocketed more than 50% in early morning trade.

The gains came after the company confirmed it had received a takeover bid valuing it at more than $300 million and representing a 70% premium on Friday’s close.

The 23-cent per share cash bid was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar’s Skip Capital and Stonepeak Partners.

The company’s board noted the acquisition proposal was unsolicited and said it “has not yet formed a view on [the bid’s] merits”.

The bid comes after Skip Capital snapped up a 19.99% stake in Genex’s stock last week.

Genex posts record revenue and cash flow

It certainly makes for an exciting period for the company, which posted its first full year of positive cash flow this morning.  

Genex’s operating cash flow for financial year 2022 came to $4 million. Its solar farms brought in record unaudited revenue of $26.1 million in that time while the company reported $8.6 million of revenue for the June quarter.

Genex benefited from strong electricity prices last quarter while construction continued at its Kidston Pumped Hydro Project and Bouldercombe Battery Project.

The company’s renewable energy generation and storage portfolio is worth more than $1 billion.

The post Genex share price rockets 50% on confirmed takeover bid appeared first on The Motley Fool Australia.

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More reading

• Genex share price in focus amid Atlassian co-founder’s $300m takeover bid
• Here’s why ASX renewable shares slipped in June

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 Atlassian. 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 EML Payments Ltd (ASX: EML) share price is having a difficult start to the week.

In morning trade, the payments company’s shares are down 22% to 92.5 cents.

Why is the EML share price crashing?

Investors have been selling down the EML share price on Monday following the release of the company’s update on its dealings with the Central Bank of Ireland.

With the assistance of external expert advisors, EML’s European business, PFS Card Services, has been undertaking a remediation programme at the direction of Central Bank of Ireland since July 2021. This covers its entire operations in Europe.

According to today’s update, despite the significant work PFS Card Services has undertaken, the Central Bank of Ireland is still not satisfied with its remediation programme. It notes that the bank has identified “shortcomings” in components of the programme, principally the sequencing and approach taken to the risk assessment of its distributors, corporates and customers.

What now?

PFS Card Services will now adopt a revised approach to these components, which it warns may result in additional controls being embedded into the internal control framework. It is anticipated that the adjustments to the remediation programme will result in assurance being finalised in 2023.

In addition, EML will continue to operate with a material growth limitation over its total payment volumes while this remediation work is undertaken. These limitations are due to expire in December but this latest development could impact this.

EML’s new managing director and CEO, Emma Shand, and the board are actively engaging with the Central Bank of Ireland.

It’s not all bad news out of Europe, though. One positive is that the European Central Bank’s decision to raise the cash rate by 50 basis points last week is expected to immediately benefit EML’s European business by approximately $4 million on an annualised basis. Management also highlights that a favourable interest rate environment is expected to partially offset the elevated cost base in Europe due to the remediation programme.

The post EML share price crashes 22% on Ireland warning appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Ansell, EML, Suncorp, and Whitehaven Coal shares are charging higher
• These are the 10 most shorted ASX shares
• EML Payments share price lifts on confirmed takeover talks
• EML Payments share price rebounds 12% after former CEO sheds more light

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 EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investing in stocks is not for the faint of heart. Unlike other asset classes — like real estate — where investors rarely experience extreme volatility, the stock market has a tendency to test the emotional fortitude of its participants.

And 2022 is just the latest episode in the saga.

With the S&P 500 declining as much as 23% year to date and its tech-heavy cousin, the Nasdaq Composite, down even more, there are investors who will likely leave the market for good in the coming weeks (if they haven’t already). In fact, a recent survey by Allianz Life found that 43% of investors are too nervous to buy stocks at current levels.

But if the goal is to buy low and sell high, why would investors be hesitant to buy when stocks are cheap?

This is the investor’s dilemma. We all say we are going to buy when the market is down, and yet when the opportunity presents itself, we find it difficult to pull the trigger. Here are three reminders to help you stay the course so your portfolio can come out of this bear market on top.

Net buyers of stocks win long term

One of the simplest reminders to calm one’s nerves during a bear market is that the market has never failed to recover from past crashes.

Consider the chart below that tracks the overall returns of the S&P 500 and Nasdaq as well as their all-time highs over the past several decades.

Data by YCharts.

This chart might be a bit confusing at first glance, but it’s actually pretty simple. The straight horizontal lines represent the period of time between all-time highs in both indices.

There are two important takeaways:

1. Both indices have recovered from every crash to reclaim their all-time highs and surge even higher.
2. There have been extended periods of time for both indices before those all-time highs were recovered.

The second takeaway is not as uplifting, but it should actually be the bigger motivator to keep investing through bear markets. If you are planning to wait until the market recovers to begin investing, just know you could be waiting more than seven years based on the S&P 500’s longest recovery.

Even worse, the tech investors who exited the market after the dot-com bubble missed out on nearly 300% of Nasdaq gains over the next 15 years:

Data by YCharts.

Finally, here are a couple more stats to support remaining a net buyer of stocks today:

• Half of the market’s best trading days take place during bear markets.
• Midterm election years tend to be brutal for stocks, but the average gain in the S&P 500 the following year is 32% (according to LPL Research).

Buying what you know gives you an edge

When the market gets me down, I often turn to the words of legendary mutual fund manager Peter Lynch.

He said the following about using your unique edge when buying stocks:

People have incredible edges and they throw them away […] If you’d worked in the auto industry — let’s say you have been an auto dealer for the last 10 years — you would have seen Chrysler come up with the minivan. If you were a Buick dealer, a Toyota dealer, a Honda dealer, you would have seen the Chrysler dealership packed with people. You could have made 10 times your money on Chrysler a year after the minivan came out.

Lynch’s point is instead of chasing hot stocks, look for companies in your area of expertise.

People are more than willing to pile money into industries they know nothing about because the rest of the market is doing so, even when there are huge opportunities in their own fields of expertise.

So, if you’re feeling frightened about putting money in the market right now, consider looking at stocks where you have a unique advantage. To be honest, this is good advice in any market cycle, but it can give you the conviction you need to keep investing during bearish periods.

Put on your contrarian hat

To succeed in investing, it can pay off looking at the market in a contrarian way. And in a bear market, there are tremendous opportunities to be a contrarian.

Right now, many investors are throwing out pretty much all technology companies. The market is collectively saying that because inflation is higher and interest rates are on the rise, technological growth will stall for the foreseeable future.

Much of this is muscle memory from the dot-com crash when hundreds of companies went public with weak to nonexistent underlying business models. But many of the technology companies that have sold off this past year are highly profitable and driving society forward in the digital world.

I doubt rising interest rates will significantly deter this advancement, and investors buying up quality growth companies at cheap prices will likely reap the rewards in the future.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Your portfolio vs a bear market: How to come out on top appeared first on The Motley Fool Australia.

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More reading

• Why is the Nanosonics share price sinking?
• South32 share price higher on solid Q4 update
• Flight Centre share price storms 5% higher on guidance upgrade
• Tesla Q2 earnings call: 3 must-see quotes from Elon Musk
• Genex share price in focus amid Atlassian co-founder’s $300m takeover bid

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Nanosonics Ltd (ASX: NAN) share price is on course to start the week a sizeable decline

At the time of writing, the infection prevention company’s shares are down over 5% to $4.36.

This is despite the Nanosonics share price storming 5% higher shortly after the open.

Why is the Nanosonics share price sinking?

Investors have been selling down the Nanosonics share price on Monday following the release of an update on its sales model transition in the North America.

According to the release, the company’s transition completed successfully with a significant proportion of all consumables sales now going through the direct channel.

The company also revealed that its North American new installed base increased by 2,650 units in FY 2022. This is an increase of 11% over the prior corresponding period. This took its global installed base to 29,850, which is up 12% year on year.

Positively, during the fourth quarter, Nanosonics’ expanded North American team sold 91% of all new installed base units.

Furthermore, the number of upgrade units sold in the second half in North America was up 32% over the first half. Of the upgrade units sold in the second half, 63% were in the fourth quarter with the Nanosonics team responsible for 86% of those sales.

Management expects this trend to continue, with the significant majority of future capital sales (both new installed base and upgrades) to be made by Nanosonics.

In light of the above, the company expects to report full-year revenue of $120.3 million in FY 2022. This will be a 17% increase on the prior corresponding period and is ahead of the market consensus estimate of ~$115 million.

So why are its shares sinking?

Given the revenue beat, the weakness in the Nanosonics share price today has been a bit of a surprise.

However, it is worth noting that one thing missing from its update was any talk about costs or margins. These have been a major concern for investors and are part of the reason why short sellers have been targeting Nanosonics.

The lack of an update on its profitability could have spooked investors and sent them to the exits this morning.

Investors will have to wait until 23 August for its results to find out how the transition has impacted its margins.

Management commentary

Nanosonics’ CEO Michael Kavanagh said:

The strategic move to a more direct sales model in North America is now substantially complete with the expanded Nanosonics operation fully in place. The collaboration between Nanosonics and GE has resulted in no disruption in the continuity of supply of consumables to customers.

The intended benefits of this change are also coming to fruition with the Nanosonics direct team selling the significant majority of all new installed base during FY22 Q4 as well as driving upgrade adoption in the same period.

While Nanosonics’ direct operations will be responsible for the significant majority of all capital sales and 100% of consumables sales moving forward, the capital reseller agreement with GE Healthcare has been extended for a further 12 months. Our respective teams continue to collaborate to ensure the infection prevention needs of customers and their patients are met.

The post Why is the Nanosonics share price sinking? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Why is the Nanosonics share price jumping 10% on Wednesday?
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX 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 positions in and has recommended Nanosonics Limited. The Motley Fool Australia has positions in and has recommended Nanosonics 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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The South32 Ltd (ASX: S32) share price is pushing higher on Monday following the release of the miner’s production update.

In morning trade, the mining giant’s shares are up 2.5% to $3.62.

South32 share price higher on Q4 and full year update

Here’s a summary of its performance in the fourth quarter:

• Alumina production up 3% quarter on quarter to 1,361kt
• Aluminium production up 5% to 255kt
• Copper production up 101% to 16.9kt
• Manganese production up 22% to 1,469 kwmt
• Metallurgical coal down 12% to 1,380kt
• Nickel production up 2% to 10.8kt
• Zinc production down 6% to 15.4kt

What happened in FY 2022?

This solid fourth-quarter led to South32 reporting record annual production at Worsley Alumina, guidance-beating zinc production at Cannington, and 99% of its copper guidance. The latter was despite impacts from weather and labour availability caused by the COVID-19 pandemic.

Management notes that its stable operating performance has allowed the company to capitalise on record conditions for a number of its commodities, with strong sales in the June 2022 quarter capturing the benefit of high prices.

Another positive is that the company is expecting to report FY 2022 operating unit costs in-line with its previously updated guidance at the majority of its operations. This is thanks to lower than anticipated producer currencies providing a benefit in the June 2022 quarter and helping to offset cost inflation.

Looking ahead, higher volumes at some of its operations and the tailwind of lower producer currencies are expected to provide partial relief from the ongoing effect of industry wide labour, raw material, and energy cost inflation that impacted its cost base in FY 2022.

Management commentary

South32’s CEO, Graham Kerr, was pleased with the fourth quarter. Particularly given the challenges the company faced during the three months. He said:

Our teams delivered another strong operating performance in the June quarter, despite challenges that included extreme weather, supply chain disruptions and reduced labour availability caused by the COVID-19 pandemic.

Record annual production at Worsley Alumina, along with record quarterly production at South Africa Manganese and a strong sales result in June, capturing the benefit of high prices, capped another year of substantial progress for South32.

We achieved further significant milestones as we reshape our portfolio towards the metals critical for a low carbon future. In May, we completed the acquisition of an additional shareholding in the hydro-powered Mozal Aluminium smelter. We also completed our acquisition of an additional interest in the MRN bauxite mine and delivered first production from the restart of our Brazil Aluminium smelter, powered by 100 per cent cost efficient renewable power.

The post South32 share price higher on solid Q4 update appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Analysts name 2 ASX dividend shares to buy next week
• Analysts name 2 top ASX 200 dividend shares to buy
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ‘We have clearly seen the peak’: Sector veteran gives earnings season warning for ASX mining 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.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is having a strong start to the week.

In morning trade, the travel agent’s shares are up over 5% to $18.05.

Why is the Flight Centre share price charging higher?

Investors have been bidding the Flight Centre share price higher this morning after the company upgraded its guidance for FY 2022.

Following a solid rebound in travel demand globally late in the financial year, the company expects to record an underlying EBITDA loss of between $180 million and $190 million in FY 2022.

This represents an 11.9% improvement on the mid-point of the company’s initial FY 2022 guidance for an underlying loss of between $195 million and $225 million. It will also be a material improvement on Flight Centre’s FY 2021 underlying EBITDA loss of $337.9 million.

Based on this, the company is expecting to breakeven on an underlying EBITDA basis for the six months to June 30. Management notes that this is a major turnaround considering the significant losses it was making through to February.

On the top line, management expects to report total transaction value (TTV) of over $10 billion, which is more than two-and-a-half times the $3.95 billion achieved in FY 2021.

Pleasingly, on a monthly basis, the company’s TTV was tracking near or above pre-COVID levels in a number of businesses by year-end. This has been fuelled by both an uplift in demand and higher than normal ticket prices linked to a lack of airline capacity, particularly on international routes.

Management commentary

Flight Centre’s managing director, Graham Turner, was pleased with the company’s turnaround. He said:

After an incredibly challenging period, we were pleased to achieve our goal of returning to monthly underlying EBITDA profitability in both the corporate and leisure sectors late in the year. The scale of our recovery exceeded our initial expectations and meant that we should now exceed our preliminary FY22 result target, with early trading results pointing to a breakeven second half result and a healthy fourth quarter profit (underlying EBITDA).

Turner acknowledges that COVID isn’t going anywhere any time and the industry will continue to face challenges from new strains. Nevertheless, he believes the company is well-placed to overcome these challenges. The managing director explained:

There will inevitably be ongoing challenges for the industry over the next six to twelve months as new strains of the virus emerge, airline capacity returns and as we rebuild staff numbers to required levels, but we feel that we are well placed to overcome these concerns given our corporate business’s continued rise and our leisure business’s ongoing strength.

In the corporate sector, we are gaining market-share globally through high customer retention rates and a multi-billion-dollar pipeline of new accounts won across our Corporate Traveller and FCM brands during the pandemic.

In the leisure sector, our success is built on having strong brands and sales channels that are resonating with customers in what is now a more complex travel environment.

The post Flight Centre share price storms 5% higher on guidance upgrade appeared first on The Motley Fool Australia.

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More reading

• Why are Flight Centre, Webjet, and other ASX travel shares sinking today?
• Is the Flight Centre share price on a runway to growth in FY23?
• Flight Centre share price leaps as ‘revenge travel’ takes off
• These are the 10 most shorted ASX shares
• Clipped wings: Why ASX 200 travel shares are having trouble getting off the ground today

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Tesla (NASDAQ: TSLA) surged higher last week, helped by the electric-car maker’s second-quarter report, which included better-than-expected adjusted earnings per share and an impressive outlook from management for a strong second half of the year. The upbeat update from management was welcomed warmly by investors as Wall Street is being greeted by a growing number of disappointing quarterly reports this earnings season.

While the earnings release included a lot of interesting information, investors interested in the stock should also take some time to listen to Tesla’s second-quarter earnings call, where management discussed its results in more detail with analysts. It was packed with helpful information, including additional commentary on the supply chain, more color on the company’s plans to boost manufacturing capacity, and more. Management’s comments from the call provided important information for investors as they try to assess the company’s growth potential.

Here are three quotes from the call that investors should see.

An improving supply chain

“I think we’re seeing a very rapid increase in battery production and in the whole supply chain,” said Tesla CEO Elon musk in the earnings call.

This is great news for Tesla, since the company seems to have more than enough demand. With Model Y orders today delivering sometime next year, for instance, Tesla’s sales growth is limited by supply.

The company provided some more concrete evidence of its improving supply chain when Elon noted that the company saw record levels of production at both its Fremont and Shanghai factories in June.

Combining its improving supply chain with its achievement of record production levels in June, Tesla said it expects to have a record-breaking second half of the year.

Tesla’s planned Cybertruck launch

The long-awaited Tesla Cybertruck has a target launch date. Musk said he expects deliveries of the fully electric pickup truck to start in the middle of next year. “And we’re very, very excited about that product. I think it might actually be our best product ever,” the CEO added.

Given the popularity of pickup trucks in the United States, investors have good reason to look forward to the important vehicle’s launch.

Manufacturing capacity expectations

In the company’s second-quarter earnings report, Tesla revealed it currently has installed production capacity for production of up to 1.9 million vehicles per year. For context, Tesla delivered only 936,000 vehicles this year. Achieving production levels of 2 million vehicles annually, therefore, would represent significant growth.

But it’s one thing to have installed capacity and another to refine production lines and the supply chain to fully utilize this capacity. To this end, one analyst asked how quickly Tesla can ramp up production and Musk said, “I think we’ve got a good chance of exiting this year at 40,000 vehicles a week.” That’s an annualized run rate of more than 2 million vehicles.

Overall, the earnings call gave even more credence to the already upbeat narrative revealed in the company’s second-quarter earnings report. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Tesla Q2 earnings call: 3 must-see quotes from Elon Musk appeared first on The Motley Fool Australia.

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Daniel Sparks 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 Tesla. 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 article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Today could be a big one for the Genex Power Ltd (ASX: GNX) share price after the company received a takeover bid worth more than $300 million.

The 23 cents per share bid for the company was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar’s Skip Capital.

The Genex share price was 13.5 cents at its previous close.

Let’s take a closer look at the takeover proposal announced by the company this morning.

Genex share price on watch following takeover bid

The Genex share price could be about to take off after the company confirmed a previously-speculated takeover bid on Monday. Additionally, the company released its quarterly results today.

A consortium made up of the Skip Essential Infrastructure Fund and Stonepeak Partners has placed a 23 cent per share bid for Genex, representing a total valuation of more than $300 million and a 70% premium on the company’s previous close.

Skip Capital – headed by Farquhar’s wife, former Hastings Funds Management director Kim Jackson – snapped up a 19.99% interest in the renewable energy company’s stock last week.

Genex’s portfolio of renewable energy generation and storage projects is worth more than $1 billion.

Commenting on the bid, Jackson said, courtesy of The Australian:

Skip Essential Infrastructure Fund and Stonepeak bring the experience and insight required to allow Genex to play a substantially larger role in Australia’s energy transition.

The Genex board hasn’t promised it will engage with the takeover bid. It noted a potential acquisition would be subject to its recommendation, due diligence, and regulatory approvals. Notably, it would need the approval of the Foreign Investment Review Board.

And in other news likely to move the Genex share price today, the company achieved record revenue and its maiden full-year positive cash flow last financial year.

Its solar farms brought in $26.1 million of revenue (unaudited) over financial year 2022. Meanwhile, its net operating cash flow reached $4 million.

The post Genex share price in focus amid Atlassian co-founder’s $300m takeover bid appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Atlassian. 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 Breville Group Ltd (ASX: BRG) share price has risen by around 17% since 23 June 2022.

After that sizeable rise in the company’s shares, investors may be wondering whether the business is still worth pursuing.

Sometimes a share price can move quickly, making it more (or less) attractive to brokers.

Let’s have a look at some of the latest broker ratings.

Expert opinion on the Breville share price

There are many brokers that currently believe Breville is a buy.

Indeed, UBS thinks it is a buy with a reduced price target of $25. It acknowledges the outlook is looking less promising but it’s still expecting a small amount of revenue growth in FY23, with a return to better growth in FY24 and a good longer-term outlook.

Morgans also rates the company as a buy with a price target of $25. It also noted that inflation could cause problems on both the revenue and cost side for Breville, but a small amount of growth is still expected in FY23.

Similarly, Morgan Stanley also rates the ASX share a buy with a price target of $25. The broker said the decline in the Breville share price makes it seem attractive, partly because of its global growth potential. It also said the customers that Breville sells to could be less hard hit by inflationary pressure.

Macquarie is yet another broker with a positive rating on the business, though the price target is a little lower at $23.35. Still, that implies a potential upside of around 15%. The broker thinks that Breville can deliver attractive growth over the longer term.

In a recent presentation to investors, Breville noted that it has a “long way to go” and is presented with a “large, untapped opportunity”.

Most recent result

For the first six months of FY22, Breville said that revenue was up 23.6% to $878.7 million and net profit after tax (NPAT) increased by 25.1% to $77.7 million. Its dividend was boosted to 15 cents per share, an increase of 15.4%.

It said that there was strong demand across all regions and categories underpinning revenue growth, despite ongoing logistical challenges. Margins were “well managed” with price rises and restrained promotional spending.

Further, the company committed to continue investing in research and development, marketing, and technology to support growth in FY23 and beyond.

In FY22, it’s expecting to generate earnings before interest and tax (EBIT) of approximately $156 million.

The company also recently completed the acquisition of LELIT, an Italian business that designs, manufactures, and sells premium ‘prosumer’ home coffee equipment in Europe and throughout the world. This deal was for a total cost of $140 million.

Breville share price snapshot

Since the beginning of 2022, the Breville share price has dropped by 37%.

The post The Breville share price has surged 17% in around a month. Is it too late to buy? appeared first on The Motley Fool Australia.

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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 recommended Macquarie Group 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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