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Rio Tinto Limited (ASX: RIO) shares have pushed higher in 2022 and are now trading more than 16% in the green at $116.56 at the time of writing. That includes a 0.79% gain today.

However, reports say the miner is now embroiled in a Federal Court battle in Australia with the world’s second-largest aluminium producer, Rusal.

In wider market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is flat today but is up by more than 10% year to date.

Rio to face lawsuit over aluminium decision

The Rio Tinto share price is climbing today amid a report by Reuters that Russian aluminium giant Rusal has filed a lawsuit against Rio to regain control of its 20% stake in Queensland Alumina Ltd.

Following its decision to sever ties with Russian businesses, Rio – the already 80% owner – took full control of the aluminium refinery in April.

Rusal has swiped back via its Australian subsidiary in an Australian Federal Court, arguing that Rio’s decision was a breach of obligations, Reuters reports.

It asked the Federal Court to restore its rights of ownership at Queensland Aluminium, seeking confirmation of no further sanctions in the process.

Australia had banned the export of alumina and bauxite to Russia back in March, in keeping with international sanctions on the country. A Federal Court decision awaits.

Meanwhile, the price of aluminium has just bounced from a key support level after sliding heavily from its 52-week highs.

It now trades at US$2,789 per tonne, well off a peak of US$3,849 in March, but still well above its mark heading into the pandemic.

Rio Tinto share price snapshot

After bouncing off lows of $102 in March, Rio Tinto shares are now fetching $116.56 apiece on Tuesday afternoon.

In the last 12 months, the Rio Tinto share price has clipped a 7% loss, despite climbing 16% this year to date.

The post Own Rio Tinto shares? Here’s why the miner is being sued by this Russian aluminium producer appeared first on The Motley Fool Australia.

More reading

• What are brokers predicting for the Rio Tinto share price in June?
• What happened to the Rio Tinto share price in May?
• Why are the ASX 200 iron ore giants outperforming on Friday?
• How might ‘green premiums’ impact the value of ASX mining shares?
• The Rio Tinto share price has leapt 11% in 3 weeks. Is there more to come?

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.

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The ASX could be about to bid farewell to nickel mining giant Western Areas Ltd (ASX: WSA) as the company prepares to be acquired by S&P/ASX 200 Index (ASX: XJO) resources monolith IGO Ltd (ASX: IGO).

If all goes according to plan, Western Areas shares will be suspended from trading as of tomorrow’s close. That will mark an end to the company’s 22-year chapter on the ASX.

At the time of writing, the Western Areas share price is $3.87, 0.13% higher than its previous close.

For context, the ASX 200 is currently down 1.39% while the S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.19%.  

Let’s take a closer look at what the next few days could bring Western Areas.

Will tomorrow be this ASX nickel miner’s last day of trade?

The ongoing acquisition of $1.2 billion nickel miner Western Areas by IGO has taken another step forward as the Supreme Court of Western Australia gives the takeover its tick of approval.

Now, all that there is to do is for Western Areas to lodge a copy of the court’s orders to the Australian Securities and Investments Commission (ASIC), making the scheme legally effective. The company plans to do so tomorrow.

After the document is submitted, the company’s stock is expected to close for the last time.

Though, Western Areas shareholders won’t be left out in the cold. They’ll receive $3.87 cold hard cash for every share in the company they own.

That’s up from IGO’s previous bid of $3.36 per share. It was placed before the now-renown short squeeze that saw the price of nickel rocketing 250% in a single day.

Thus, an independent expert found the initial bid – placed in December – undervalued the billion-dollar nickel miner come April.

It was a lucky happening for Western Area shareholders. They are now likely expecting a payout in the near future.

The post Is the ASX about to wave goodbye to this billion-dollar nickel miner? appeared first on The Motley Fool Australia.

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• 2 ASX All Ordinaries shares rocking new multi-year highs on Wednesday
• Why the IGO share price is rallying on Monday

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 Newcrest Mining Ltd (ASX: NCM) share price has been struggling in the past month.

The ASX 200 gold miner’s share price has descended nearly 9% since market close on 6 May and is currently trading at $24.07. For perspective, the S&P/ASX 200 Index (ASX: XJO) has dropped nearly 1% in the same timeframe.

So what is happening to the Newcrest Mining share price?

Gold loses its shine

Newcrest is not the only ASX gold share to slump in the past month. The Northern Star Resources Ltd (ASX: NST) share price has sunk almost 10% since market close on 6 May, while Evolution Mining Ltd (ASX: EVN) shares have shed 5%.

Gold prices have fallen more than 2% from US$1,882.80 an ounce on 6 May to US$1,843.70 an ounce at the time of writing, CNBC data shows. The gold price hit a more than three month low of US$1,808.20 an ounce on 13 May before recovering to the current price.

Broker downgrades may have also impacted the Newcrest share price. UBS cut the Newcrest 12-month price target by 2.2%, while Macquarie analysts lowered their target by 2.9% after the company’s third-quarter results on 28 April. However, these brokers still believe the company’s shares will jump higher than the current price.

In early May, Newcrest was listed as a share that has fallen into “underheld” territory in the JP Morgan’s Fund Manager Radar report.

On 23 May, the market was advised Newcrest will operate the next stage of the Wilki Project in the Paterson Province of Western Australia. As part of an agreement with Antipa Minerals Limited (ASX: AZY), Newcrest will spend $6 million on exploration within the next two years. The company then needs to pay $10 million by 2025 to attain a 51% joint venture interest and $44 million by March 2028 to own a 75% share in the project.

In recent news, analysts at JPMorgan have placed an overweight rating on the Newcrest share price with a $30 price target. This is 24% more than the share price at the time of writing.

Newcrest Mining share price snapshot

The Newcrest share price has slipped nearly 13% in the past year, while it has descended nearly 2% in the year to date.

For perspective, the benchmark ASX 200 index has lost 2% in the past year.

Newcrest has a market capitalisation of about $21 billion based on its current share price.

The post Why has the Newcrest share price tumbled 9% in a month? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Here’s why JPMorgan is bullish on the Newcrest share price
• UBS warns of more downgrades for ASX 200 shares… but not all
• 5 things to watch on the ASX 200 on Monday

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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There are a growing number of exchange traded funds (ETFs) for investors to choose from on the Australian share market.

But which ETFs should you look at? Listed below are three excellent ETFs that could be worth getting better acquainted with. Here’s what you need to know about them:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF to look at is the BetaShares Crypto Innovators ETF. This high risk ETF gives investors easy access to the main players in the cryptocurrency market. These are the miners, neobanks, trading platforms, and mining equipment providers. Among its holdings you’ll find Coinbase, Silvergate, and Riot Blockchain. All of these companies look well-placed for strong growth over the next decade if the crypto industry proves not to be a bubble waiting to burst.

BetaShares Global Banks ETF (ASX: BNKS)

Another ETF for investors to look at is BetaShares Global Banks ETF. This ETF gives investors exposure to many of the world’s largest banks and excludes Australian banks. This provides investors with the opportunity to spread their financial sector risk beyond the Australian banking sector. It also gives investors easy exposure to rising interest rates, which are likely to be a boost to bank margins. Among the banks included in the fund are Bank of America, Barclays, Citigroup, HSBC, JPMorgan and Wells Fargo.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A final ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This ETF is focused on companies with attractive valuations and sustainable competitive advantages or moats. At the last count, the ETF was home to 46 with these desirable qualities. Among the ETF’s holdings are the likes of Alphabet (Google), Altria, Boeing, Coca Cola, Kellogg Co, and Walt Disney.

The post 3 high quality ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Banks ETF – Currency Hedged and Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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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In case you were wondering, the RocketBoots Ltd (ASX: ROC) share price is one of the best performers on the ASX today.

This comes after the software products and machine learning solutions company announced a partnership with a US tech giant.

At the time of writing, RocketBoots shares are up an astonishing 107.32% to 17 cents.

RocketBoots shares enter the stratosphere

Investors are fighting to get a hold of RocketBoots shares following the company’s significant announcement.

According to its release, RocketBoots advised it has been accepted to the NVIDIA Metropolis Partner Program.

Headquartered in California, NVIDIA (NASDAQ: NVDA) is one of the world’s leading tech companies. It’s famous for developing integrated circuits, which are used in everything from electronic game consoles to personal computers (PCs).

The company is also a leading manufacturer of high-end graphics processing units (GPUs).

The business has a market capitalisation of roughly US$468 billion and employs over 22,000 people worldwide.

Being included in the Metropolis ecosystem allows RocketBoots to leverage NVIDIA developer tools and software development kits to enhance its AI-vision applications and services.

RocketBoots will use NVIDA’s high-performance computing platform to deliver advanced computer vision capabilities to its flagship software, Beehive.

Deployed and managed remotely, the software product collects physical world activity data through cameras and sensors. It is centred upon solving challenges in workforce management, property management and loss prevention.

Being admitted to the program provides RocketBoots the opportunity to gain early access to NVIDIA technology updates.

Furthermore, it creates another pathway for RocketBoots to market and sell its software in unison with NVIDIA.

Under the partnership, either party can terminate the agreement on immediate notice.

RocketBoots share price summary

While RocketBoots shares are accelerating today, since its listing in December 2021, they have fallen 15%.

The RocketBoots share price hit an all-time low of 8.2 cents yesterday before racing to a 5-month high today.

Based on valuation grounds, RocketBoots presides a market capitalisation of roughly $3.08 million, with about 60.25 million shares outstanding.

The post Why this ASX small-cap share is rocketing 107% higher today appeared first on The Motley Fool Australia.

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• 2 top metaverse stocks I think are ready for a bull run

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

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The S&P/ASX 200 Index (ASX: XJO) is continuing to sell off this Tuesday, helped in no small part by the Reserve Bank of Australia’s unexpectedly large interest rate rise. At the time of writing, the ASX 200 has lost a painful 1.42% and is now back to around 7,100 points.

But rather than letting that get us down today, let’s check out the shares that are currently topping the ASX 200’s share volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is our first share worth taking a glance at today. So far this Tuesday, a notable 16.35 million Telstra shares have changed owners. There hasn’t been any news out of Telstra today.

Thus, we can probably put this high volume down to the substantial drop Telstra shares have undergone. The telco is currently down by a chunky 1.16% at $3.845 a share. This latest drop puts Telstra at close to a 4% loss over June alone.

Tabcorp Holdings Limited (ASX: TAH)

ASX 200 gaming company Tabcorp is next up today. We have seen a whopping 17.12 million Tabcorp shares swap hands as it currently stands. We haven’t got anything new from Tabcorp today. However, yesterday saw some big news regarding the gaming sector.

As we covered at the time, the Queensland Government announced some legislative reforms that could prove to be a big boost for Tabcorp’s business. Yesterday saw a big share price move upward, but the market seems to have gone from giveth to taking away today and it is currently down 0.5% at 98.5 cents. This is probably why Tabcorp finds itself on this list today.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is our final and most traded share of the day this Tuesday. So far today, a sizeable 17.23 million of this ASX 200 lithium producer’s shares have been bought and sold. Like Telstra, there hasn’t been much out of Pilbara itself today. Saying that, we have another noteworthy share price move to discuss.

Fortunately for investors, Pilbara shares are enjoying a market-bucking kind of day, with the company gaining 1.03% at the time of writing to $2.455 a share. Pilbara has been bouncing around a fair bit today though, which is the likely source of this elevated trading volume.

The post Here are the 3 most traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

More reading

• 10 ASX All Ords shares that could be stung by tax-loss selling
• How is the Pilbara Minerals share price performing against its sector in 2022?
• Analysts name 2 top ASX 200 dividend shares to buy right now
• Here are the 3 most traded ASX 200 shares on Monday
• Why GrainCorp, New Hope, Tabcorp, and Woodside shares are pushing higher

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re wanting to strengthen your portfolio with some ASX 200 blue chip shares, you may want to look at the two listed below.

Both have recently been named as buys by leading brokers. Here’s why they could be the blue chip shares to buy right now:

Goodman Group (ASX: GMG)

The first ASX 200 blue chip share to look at is Goodman Group. It is a leading global integrated commercial and industrial property company with a portfolio of warehouses, large scale logistics facilities, and business and office parks.

Goldman Sachs is a big fan of the company and recently initiated coverage on its shares with a buy rating and $25.40 price target. This is largely due to strong demand for industrial properties and its burgeoning development pipeline.

Goldman said: “We continue to forecast a ~19% CAGR in AUM over FY21-24e, with AUM reaching ~A$90bn by end FY24. We forecast development completions to contribute the majority (~75%) of AUM growth over 1H22-FY24e (based on development production of ~A$7bn pa).”

ResMed Inc (ASX: RMD)

Another high quality ASX 200 blue chip share for investors to consider is ResMed. It is a global leader in the development, manufacturing, distribution, and marketing of medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders.

Analysts at Citi are very positive on the company and have a buy rating and $35.50 price target on its shares. Its analysts believe ResMed is well-placed to permanently grow its market share in the sleep treatment market due to a major competitor product recall.

The broker commented: “Despite the short-term impact [of supply chain issues], we continue to expect ResMed will make a permanent 10% market share gain in devices due to the Philips’ recall.”

The post Experts name 2 excellent blue chip ASX 200 shares to buy appeared first on The Motley Fool Australia.

More reading

• Goldman Sachs rates these ASX shares as buys
• Why the ResMed share price could jump 25% from current levels
• 2 ASX shares to buy if you don’t want to invest in the share market: experts
• Why has the Goodman share price tanked 14% in a month?
• Why I’d buy these 2 ASX 200 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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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 end of the financial year is fast approaching, which means two things: it’s time to start getting your personal taxes in order and ASX shares may see some extra selling pressure.

The S&P/ASX All Ordinaries Index (ASX: XAO) has weathered a 0.8% decline since the beginning of the month. Though, a subset of companies inside the index might receive more punishment this month.

Commonly, investors that are ready to call it quits on an underperforming investment begin to action their sell orders in June as the end of the financial year draws near. As you might imagine, this can momentarily depress the performance of ASX shares.

In particular, companies that have already experienced significant falls in the financial period tend to have a greater chance of landing on the chopping block.

In light of this, here are 10 companies that might be subjected to increased selling this month.

ASX All Ords shares that could be tax time targets

One common market adage is, “sell in May and go away.” Though, this isn’t such a feasible approach for long-term investors. Additionally, the share market isn’t predictable enough to confine it to such simple rules. If it were, we’d all be timing the market perfectly — and, we know that isn’t the reality.

However, it is always helpful to mentally be readied for potential short-term share price weakness. Furthermore, if these are companies shareholders believe are winners over the long-term, any downside this month could serve as a buying opportunity.

Below is a list of ASX All Ords shares that have experienced the greatest falls during the financial year. Based on the above-mentioned logic, these companies could be in the sights of investors looking to make use of capital losses:

ASX-listed company	Share price	Price change in FY22
Sezzle Inc (ASX: SZL)	$0.47	-94.6%
Marley Spoon AG (ASX: MMM)	$0.25	-90.9%
Zip Co Ltd (ASX: ZIP)	$0.68	-90.1%
Booktopia Group Ltd (ASX: BKG)	$0.36	-86.2%
PPK Group Limited (ASX: PPK)	$2.52	-83.3%
Cettire Ltd (ASX: CTT)	$0.48	-81.4%
Tabcorp Holdings Limited (ASX: TAH)	$0.99	-80.9%
Pointsbet Holdings Ltd (ASX: PBH)	$2.52	-78.8%
Magellan Financial Group Ltd (ASX: MFG)	$13.27	-76.4%
Dubber Corp Ltd (ASX: DUB)	$0.70	-76.2%

From the above table, we can see that buy now, pay later (BNPL) companies fell out of favour during this time. ASX All Ords shares such as Sezzle and Zip have both been incinerated, tumbling more than 90% since 1 July 2021.

Meanwhile, other ASX shares that could experience further selling this month include former standouts. Companies like Cettire, Pointsbet, and Dubber were all stellar performers in FY21. Unfortunately, this financial year has seen their respective share prices turn and retreat.

The post 10 ASX All Ords shares that could be stung by tax-loss selling appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Tuesday
• Why Codan, Incitec Pivot, Xero, and Zip shares are dropping
• 3 ASX 200 shares defying today’s sell-off to leap higher
• When will it end? Zip share price plummets again on Tuesday
• Magellan share price lifts amid buyback speculation

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 positions in and has recommended Cettire Limited, Dubber Corporation, Marley Spoon AG, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia has positions in and has recommended Dubber Corporation. The Motley Fool Australia has recommended Cettire Limited, Marley Spoon AG, and Pointsbet Holdings Ltd. 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 Reserve Bank of Australia (RBA) lifted its benchmark interest rate by 0.50% today to temper fast-rising inflation, which in the most recent quarter stands at 5.1%.

The central bank also increased the interest rate on Exchange Settlement balances by 0.50% to 0.75%.

This marks the second consecutive month of rate hikes from the central bank.

In May, the RBA raised the official interest rate for the first time in a decade. The bank boosted the cash rate from the all-time low 0.10% to 0.35%.

With today’s hike factored in, the cash rate now stands at 0.85%.

The S&P/ASX 200 Index (ASX: XJO) fell 0.4% following last month’s announcement.

Today investors are again hitting the sell button, as the rate hike comes in at the high end of analyst forecasts, with most economists having predicted a 0.25% or 0.40% increase. At the time of writing, the ASX 200 is down 1.5% for the day.

Here’s what RBA governor Philip Lowe said about the bank’s latest move.

RBA hikes interest rates to temper overly high inflation

Commenting on the RBA’s decision to lift the interest rate again this month, Lowe said that while inflation in Australia was lower than many other nations are experiencing it had “increased significantly” and is “higher than earlier expected”.

Unexpectedly high energy prices caused inflation figures to surprise on the upside.

Lowe pointed to continuing COVID-19 supply chain disruptions and Russia’s invasion of Ukraine as major factors driving prices higher.

He added that domestic factors were conspiring to drive costs up too “with capacity constraints in some sectors and the tight labour market contributing to the upward pressure on prices. The floods earlier this year have also affected some prices”.

Looking ahead, the RBA believes inflation will increase from the current 5.1% in 2022, but forecasts it will return to its 2% to 3% target range in 2023.

“Today’s increase in interest rates will assist with the return of inflation to target over time,” he said.

Lowe called the Australian economy “resilient”, posting 0.8% growth in the March quarter and increasing 3.3% over the year.

Addressing the strength of the labour market, he said the current 3.9% unemployment rate was the lowest level in 50 years.

Lowe concluded:

Today’s increase in interest rates by the Board is a further step in the withdrawal of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic. The resilience of the economy and the higher inflation mean that this extraordinary support is no longer needed.

What can ASX investors expect next?

Well, a few more hikes look almost certainly to be on the cards.

According to Lowe:

The Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead. The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.

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

More reading

• Why is Audinate outperforming other ASX tech shares today?
• Do Whitehaven Coal shares pay dividends?
• How is the Pilbara Minerals share price performing against its sector in 2022?
• Core Lithium share price shakes off oversupply concerns to march 8% higher today
• GQG share price slips despite FUM boost

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 tech shares are deep in the red today but the Audinate Group Ltd (ASX: AD8) is a notable exception.

Shares in the audio/video networking group are rallying 2% during lunch time trade to a three-month high of $7.18.

In contrast, the S&P/ASX 200 Index (ASX: XJO) tumbled 1% as other ASX tech names led the loss. The WiseTech Global Ltd (ASX: WTC) share price lost 4%, the Block Inc CDI (ASX: SQ2) surrendered 2% and Altium Limited (ASX: ALU) share price declined 1%.

Audinate share price jumps as ASX tech shares tumble

The threat of an interest rate hike by the Reserve Bank of Australia later this afternoon may be weighing on sentiment. But the Audinate share price is bucking the trend as Morgan Stanley reacted to its trading update yesterday.

The market was a little unsure what to make of the company’s guidance that FY22 revenue would exceed US$30 million as its shares bounced between gains and losses on Monday.

But there’s little doubt in Morgan Stanley’s mind that Audinate is a buy as the broker reiterated its “overweight” call on the shares.

Record quarterly sales

Morgan Stanley noted that at US$30 million, Q4 FY22 sales would have jumped 26% to US$8.7 million. That far exceeds consensus forecast of $7.2 million for the quarter and would mark a new record for Audinate.

The previous quarterly sales peak was Q1 FY 22 when sales increased 14.5% to US$7.6 million.

The broker added:

We noted 3Q22gave confidence that AD8’s revenue had troughed on improving supply and product mix, but we underestimated extent of 4Q rebound. Today’s guidance should also alleviate any investor concerns on demand – industry demand remains elevated, in part driven by a rebound in live [performances and events].

Drivers behind the sales rebound

One of the factors that drove the better-than-expected recovery in Q4 sales is Audinate’s success in aggregating customer demand and lobbying chip manufacturers for supply. This allowed the company to ramp up production of its equipment from March onwards.

Audinate was also making headway in switching customers to its software solutions from its hardware offering. This not only overcomes the global chip supply crunch but will help group margins.

The launch of new products to replace existing hardware is the third factor that contributed to the rebound in sales.

What is the Audinate share price worth?

Further, the company’s strong balance sheet should also help support the shares. It has enough cash for more than four years, according to Morgan Stanley.

The broker’s 12-month price target on the Audinate share price is $10.50 a share.  

The post Why is Audinate outperforming other ASX tech shares today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why did ASX 200 tech shares fall today?
• Transurban share price hit by broker downgrade
• Here are the 3 most traded ASX 200 shares on Monday
• Do Novonix shares pay dividends?

Motley Fool contributor Brendon Lau has positions in AUDINATEGL FPO and Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended AUDINATEGL FPO, Altium, Block, Inc., and WiseTech Global. The Motley Fool Australia has positions in and has recommended AUDINATEGL FPO, Block, Inc., and WiseTech Global. 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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