Tag: Motley Fool

Brokers have named a number of ASX shares as opportunities in June 2022. Businesses that are growing revenue at a relatively fast pace could turn into much bigger businesses over time.

These are businesses that are thought of as longer-term opportunities because of their current valuations and their prospects of growth.

Brokers try to calculate where a company’s share price is going to be in 12 months after their analyses of the business. That’s called a price target. Price targets aren’t guarantees, but just a guess and acknowledgement of how much potential growth the broker sees for the business. The bigger the price target, the more possible gains the broker thinks there is.

Let’s look at two of the ASX share opportunities.

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a business that provides medical imaging systems that develops “innovative image management and viewing solutions for healthcare organisations”.

It has more than 150 customers across 15 countries including integrated delivery networks, national health systems, medical research facilities, large academic medical institutions, regional community hospitals, private radiology practices, and independent provider groups.

Morgans currently rates it as a buy with a price target of $1.55. That implies a potential rise of more than 150% over the next year.

The broker took into account the ASX share’s recent FY22 third quarter.

In that update, the business said it achieved net positive operating cashflows for the quarter of $0.5 million. It also generated record financial year to date earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.2 million, up $4.7 million or 306% on last year. Third-quarter sales orders rose $4.4 million to $26.5 million. It’s also on track to deliver sales orders of $30 million for FY22.

The company also pointed to two new channel partnerships – AdvaHealth and Althea. On Althea, Mach7 said that it has a presence in 17 countries and will initially be working in Italy and the UK. There is also potential for further expansion in the EU.

BWX Limited (ASX: BWX)

BWX is a natural beauty business that has a number of brands including Sukin, Andalou Naturals, Mineral Fusion, and Go-To Skincare. The ASX share also sells products through the e-commerce sites Flora & Fauna and Nourished Life. It’s looking to expand the brands to more countries.

The broker UBS currently rates BWX as a buy with a price target of $2.55. That implies a possible rise in the BWX share price of more than 80% over the next year.

BWX recently gave a market presentation that looked at various elements of the business.

The company has done a business-wide review of financial and operating performance, as well as ongoing initiatives to support a sustainable cost base. It has identified $5 million in extra costs it can cut to streamline its operating model. In particular, it’s looking to improve its marketing return on investment (ROI) and achieve trade spend efficiency improvements.

As well, BWX is looking to grow its profit margins through various initiatives including price increases, increased manufacturing capacity, and improved operational efficiency.

The company is expecting to grow its revenue by between 20% to 25% in FY22 while the mid-point of the underlying EBITDA guidance could mean growth of around 3%.

Using UBS’ estimates on the ASX share, the BWX share price is valued at 17 times FY22’s estimated earnings and 11 times FY23’s estimated earnings.

The post Brokers rate these 2 top ASX shares as buys in June 2022 appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Here’s why the BWX share price is crashing 22% to a multi-year low today

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 positions in and has recommended MACH7 FPO. The Motley Fool Australia has recommended BWX Limited and MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9dyLBk4

Shares of Close The Loop Inc (ASX: CLG) are surging 24% into the green on Wednesday, now trading at 46 cents.

Investors might be bidding up the Close The Loop share price amid a company announcement upgrading its FY22 forecasts.

In broad market moves, the S&P/ASX 200 Index (ASX: XJO) has climbed 9 basis points into the green in today’s session.

Close The Loop boosts guidance

The company reports that it has realised strong organic revenue growth across all divisions, notably in the United States and Europe.

According to the release, “earnings [are] significantly ahead of plan” in each of these divisions, alongside strengths in its O F Pack, O F Flexo and Foster International segments.

As such, Close The Loop has upgraded its FY22 revenue and EBITDA prospectus forecasts by 11% and 10.5%, respectively.

It now forecasts $82 million and $13.6 million in FY22 revenue and EBITDA, respectively. That’s up from $74 million and $12.3 million in previous estimates.

Not only that, but the company’s current annual revenue run rate now exceeds $100 million including recent acquisitions, it says.

Separately, the company notes it has signed an MOU to produce its Resin8 structural and concrete product range in Australia. The decision comes after its launch “in other parts of the world”.

Speaking on the release, Close The Loop CEO Joe Foster said:

In our first six months as a listed entity Close The Loop Group has enjoyed considerable organic revenue growth across all divisions and we are increasing our FY22 revenue and EBITDA prospectus forecasts by 11% and 10.5% respectively.

This is due to our ability to successfully integrate complementary businesses that strengthen our capability as the only ASX-listed company operating in all parts of the circular economy. From product design, manufacturing, collection and recycling and then eventually recovering it as new packaging or secondary products, or simply packaging to packaging. When you take our acquisitions of Crasti & Co and Oceanic Agencies into account, we now have annualised revenue of around $100 million.

What’s next for Close The Loop?

The company is now looking to venture into the South African market via its sustainable packaging business. It is currently examining three possible “complementary acquisitions”.

Foster added:

While FY22 is shaping up to be a great year for the company, Close The Loop Group is also ensuring that upgrading its ability to scale as demand for recycled products generated through the circular economy increases. These initiatives include production capacity increases, efficiency improvements, new product ranges as well as examining strategic acquisition opportunities.

Close The Loop Group will host its inaugural investor day tomorrow (2 June) at its facilities in Somerton, Victoria.

The Close The Loop share price has gained 50% after listing in December 2021. It is now up more than 40% for the past month of trade.

The post Close The Loop share price rockets 24% on guidance boost appeared first on The Motley Fool Australia.

More reading

• AGL share price unscathed by scrapped demerger. What’s going on?
• IGO share price crumbles amid battery material price warning
• 2 ASX All Ordinaries shares rocking new multi-year highs on Wednesday
• Can the Altium share price cash in on the global chip shortage?
• Why did the NAB share price go backwards in May?

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.

from The Motley Fool Australia https://ift.tt/YiMgTj3

The AGL Energy Ltd (ASX: AGL) share price has dipped into the red during afternoon trade.

AGL shares are currently down 0.8% to $8.69, having posted gains of 0.8% in early morning trade.

Still, that puts the AGL share price right about where it was before news broke that the company’s demerger was off the table.

That came after the AGL Board conceded they were unlikely to get the necessary shareholder approval to move ahead with the demerger.

Saying they still saw the plan to split the company into the separate coal power-focused Accel Energy alongside energy retailer AGL Australia as “the best way forward,” the CEO, chair, and two directors tendered their resignations.

Yet despite the loss of key leaders and spending some $160 million on the demerger plans, the AGL share price has come out unscathed.

What’s going on?

For some insight into that answer, we turn to Brian Gould, head of trading at Capital.com Australia.

Optimism and pessimism in balance

According to Gould:

There are traders on both sides of this stock who are focused on different outcomes. Buyers who entered the stock on the back of Mike Cannon-Brookes’ purchase of an 11.28% block see the scrapped demerger and the loss of its CEO, Chairman and others as a good thing, while longer-term investors are concerned that the company is now rudderless.

The share price action tells us that the optimism and pessimism present in the market around AGL are pretty well matched.

Not only is AGL trading right about level with where it was before the demerger was scrapped, it’s also trading some 22% higher than before news of a potential takeover first broke in February.

And, looking ahead, traders appear to believe the AGL share price could have further to run.

“For the time being, traders on our platform are predominantly long AGL CFDs [contract for difference], because the risks seem to be to the upside and that’s scaring short-sellers away,” Gould said.

AGL share price snapshot

The AGL share price has had a strong run in 2022, up 42%. That compares to a year-to-date loss of 5% posted by the S&P/ASX 200 Index (ASX: XJO).

The post AGL share price unscathed by scrapped demerger. What’s going on? appeared first on The Motley Fool Australia.

More reading

• Why the decision to keep AGL as one makes sense: expert
• AGL demerger news ‘huge day for Australia’: Mike Cannon-Brookes
• ASX 200 midday update: AGL demerger scrapped, A2 Milk jumps
• AGL share price deflates 4% in light of new future
• AGL share price on watch as demerger scrapped

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.

from The Motley Fool Australia https://ift.tt/EA3WeDB

The IGO Ltd (ASX: IGO) share price is having a terrible start to the month.

In afternoon trade, the battery materials miner’s shares are down 13% to $11.00.

Why is the IGO share price crumbling?

Investors have been selling down the IGO share price on Wednesday following a warning from Goldman Sachs regarding battery material prices.

According to the note, its analysts believe that prices have peaked and will fall heavily over the coming years. Though, this isn’t necessarily a new view, with Goldman warning at the start of last month that lithium prices would fall materially in the near future.

However, on this occasion, the broker has taken aim at a range of battery materials.

According to Marketwatch, Goldman is forecasting the following (in USD):

[…] lithium falling from $53,982 a metric ton in 2022 to $16,372 a ton in 2023, cobalt $78,500 a ton in 2022 to $59,500 a ton in 2023. Nickel is likely to be firmer, at $31,000 a ton in 2022 to $30,250 a ton in 2023.

This is based on its assumption that between 2022 and 2025, there will be a 33% increase in lithium supply, a 14% increase in cobalt, and an 8% lift in nickel. Whereas the broker is forecasting annual demand growth rates of 27%, 11% and 7%, respectively.

As IGO has exposure to a range of battery materials, investors appear to believe that this could mean it falls short of consensus estimates.

Though, it is worth remembering that forecasting commodity prices is notoriously difficult. So, prices could behave very differently to these estimates. Time will tell if that is the case.

The post IGO share price crumbles amid battery material price warning appeared first on The Motley Fool Australia.

More reading

• Why are ASX lithium shares tanking on Wednesday?
• Why ASX lithium shares have ‘absolutely more room to run’ in 2022: expert
• Brokers name 3 ASX 200 lithium shares primed to take off
• Why the IGO share price is rallying on Monday
• Why BHP, Chalice Mining, IGO, and Life360 shares are storming higher

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.

from The Motley Fool Australia https://ift.tt/2tqhwvo

The All Ordinaries Index (ASX: XAO) is wobbling on Wednesday but some of its constituents are having a far better day as their shares trade at long-forgotten highs.

At the time of writing, the index is down 0.23%, weighed down by many of its lithium-focussed members.

So what’s driving these stocks higher amid the index’s struggles? Let’s take a look.

2 ASX All Ordinaries shares hitting long-forgotten highs

Atlas Arteria Group (ASX: ALX)

ASX All Ordinaries share and European toll road operator Atlas Arteria is having a good day on the market on Wednesday.

Its share price reached an intraday high of $7.33, 1.9% higher than its previous close and the highest it’s been since early 2020. There’s been no news from the company to explain today’s gains.

However, last week it announced APRR – a French toll road group of which Atlas Arteria owns a 31% stake – had priced around $745 million of bonds.

Atlas Arteria CEO Graeme Bevans commented on the news, saying:

The transaction provides APRR with additional liquidity, extends its weighted average debt maturity, and strengthens APRR’s capacity for future growth.

Western Areas Ltd (ASX: WSA)

Fellow ASX All Ordinaries share Western Areas is also recording a new multi-year high today. It hit an intraday high of $3.87 today, representing a 0.5% gain and its highest point since 2015.

It comes as the company’s shareholders go to a vote on IGO Ltd (ASX: IGO)’s $3.87 per share takeover offer.

The proposed acquisition was dealt a blow in April. An independent expert found the then $3.36 per share offer unvalued Western Areas.

After the company’s bid was increased, an independent expert found the higher offer is not fair but is reasonable and is, therefore, in the best interest of Western Areas shareholders in the absence of a better deal.

A scheme meeting in which Western Areas investors will have their say on IGO’s potential acquisition kicked off at midday AEST (10am AWST).

The post 2 ASX All Ordinaries shares rocking new multi-year highs on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why the IGO share price is rallying on Monday
• Expert reveals the dividend ASX share he just bought (and one he dropped)

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.

from The Motley Fool Australia https://ift.tt/tBah9eZ

The Altium Limited (ASX: ALU) share price is holding steady on Wednesday despite a broker claiming the electronic printed circuit board (PCB) software business could benefit from a global shortage of chips.

The broker Morgan Stanley believes the market may not be correctly judging how Altium is benefiting from the supply chain problems with chips, according to reporting in The Australian.

It was noted that other stakeholders in the tech supply chain, such as semiconductor businesses and tech hardware businesses are suffering from the chip shortage.

Why could the Altium share price benefit?

Morgan Stanley did some checking to confirm there is still good demand for Altium’s services. Altium’s software is reportedly being used to help work through the supply tightness.

Morgan Stanley’s Andrew McLeod said that a key takeaway from the broker’s San Francisco TMT (technology, media and telecom) conference was that “ongoing sporadic semis shortages continue to cause disruption, with most companies seeing the supply/demand imbalance to now persist into 2023″.

The broker pointed out the market seems to think Altium could suffer from supply chain problems. But, on the contrary, Morgan Stanley points out some positives.

It said Altium is actually experiencing more demand with PCB designers attracting additional workflow as they are tasked with re-purposing chips for different functions.

The broker also noted that Altium’s Octopart division – an electrical parts search engine – continues to see “strong demand” as designers look for parts in the shortage.

The final point that Morgan Stanley noted as a positive was the rapid uptake of Altium 365, which is the company’s cloud platform. It’s seeing strong demand.

On Altium 365, McLeod said (as reported by The Australian):

We keenly await detail on the monetisation strategy of 365, but as the leading cloud product, the strength of first-half results seems likely to continue.

Is the ASX tech share an opportunity?

Morgan Stanley certainly seems to think so. The broker has an ‘overweight’ rating on the ASX tech share, inferring it thinks the Altium share price is a buy.

The broker’s price target on Altium is $35. That implies a possible upside of around 20% over the next year.

Using Morgan Stanley’s earnings projections for Altium, it’s suggested Altium shares are valued at 55 times FY22’s estimated earnings. The broker then expects profit growth in FY23 for Altium. The Altium share price is valued at 44 times FY23’s estimated earnings.

The broker is also expecting Altium to grow its dividend in FY23, implying that the Altium dividend yield could be 1.8% in the next financial year.

Altium share price snapshot

Altium shares are currently down by less than 1% at $28.53 apiece in afternoon trade.

The company has a market capitalisation of around $2.2 billion.

The post Can the Altium share price cash in on the global chip shortage? appeared first on The Motley Fool Australia.

More reading

• Analysts say these ASX tech shares have over 40% upside
• Why I think these 3 ASX shares are top-quality buying at today’s prices
• 3 reasons to own Altium shares for the long term
• You won’t find more profitable ASX tech shares than these companies right now
• Who wants to be a millionaire? If only you’d invested $10,000 in these ASX shares 10 years ago

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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.

from The Motley Fool Australia https://ift.tt/D38Z2JV

The National Australia Bank Ltd. (ASX: NAB) share price failed to continue its upwards trajectory in May.

The banking giant’s shares dropped around 3% last month following the company’s half year results amidst the market volatility.

In contrast, the S&P/ASX 200 Index (ASX: XJO) also ended May in the red, shedding 2.88% over the same time frame.

And NAB wasn’t the only ASX 200 financial share to suffer, with Australia and New Zealand Banking Group Ltd (ASX: ANZ) sinking 7.5% in May.

Let’s take a look at what might have weighed on NAB shares recently.

What happened to NAB in May?

The NAB share price finished lower than it started last month, dragged down by weakened investor sentiment.

Regardless of the company registering a mostly positive set of numbers in its half yearly scorecard, the market expected a slightly better result.

The bank achieved cash earnings from continuing operations of $3,480 million, reflecting a 4.1% increase over the prior corresponding period. However, Goldman Sachs had estimated NAB to report cash earnings from continuing operations of $3,545 million in H1 FY22.

This led investors to backtrack on NAB shares by 0.59% to $32.25 following the company’s release. Another 1.95% loss also came the day after.

Looking ahead, management noted that recent data showed the ongoing strength in the Australian economy.

Consumption has rebounded strongly from lockdowns and is expected to remain robust supported by accumulated household savings. This, combined with a healthy outlook for business investment leads to a forecasted GDP growth of 3.4% over 2022 and 2.1% over 2023.

NAB share price summary

Despite heading south last month, the NAB share price has actually risen by 9% in 2022.

Its shares reached a 52-week high of $33.75 in April, before being sold off in the run up to its interim results.

It’s worth noting that even at today’s prices, the company’s shares are trading are pre-COVID-19 levels.

NAB commands a market capitalisation of roughly $100.34 billion, making it the fourth largest company on the ASX.

The post Why did the NAB share price go backwards in May? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: NAB completes acquisition, lithium miners sink, Origin tumbles
• NAB share price higher after completing $1.2bn Citi consumer business acquisition
• Best ASX shares to buy in June 2022
• Here are 2 top ASX dividend shares to buy according to analysts
• Own NAB shares? Experts reveal what makes the bank’s BNPL product ‘stand out from the pack’

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.

from The Motley Fool Australia https://ift.tt/HJyTXUs

The Paladin Energy Ltd (ASX: PDN) share price is down almost 9% on Wednesday, trading at 72.5 cents at the time of writing.

Despite no market-sensitive updates from the company today, investors continue selling off Paladin shares, extending the company’s losses to more than 17% for the year to date.

In broader market moves, the S&P/ASX 200 Energy Index (ASX: XEJ) is also trading around 0.26% lower after cooling off in recent weeks.

What’s up with the Paladin Energy share price?

Energy stocks soared to stardom in early 2022 as prices for their underlying commodities raced to multi-year highs.

Prices for the nuclear energy source uranium exploded in February amid concern in global energy markets about conflict in Europe.

Traders drove the price of uranium above its 10-year highs where it peaked at US$64.50 per pound in April, before receding to its 2021 levels again.

It is still up 54% year on year despite an 11% consolidation in the past month of trade.

With Paladin restarting the Langer Heinrich uranium mine in Namibia, the company is aiming to “take advantage of the improving uranium market conditions and deliver sustainable value creation”, according to its CEO Ian Purdy.

It appears market pundits are continuing to trade Paladin shares in response to volatility in the underlying uranium market.

The graph below illustrates the correlation between the price of the June 2022 uranium futures contract (in yellow), the broad energy index (XEJ in red), and the Paladin Energy share price (in blue) since March.

As seen above, both the Paladin Energy share price and the price for uranium have started to diverge from the wider energy sector, with all three recording losses in May.

In the last 12 months, the Paladin Energy share price has gained 46%, trading as high as $1.03 and as low as 63.5 cents since September 2021.

The post Paladin Energy share price down 9% appeared first on The Motley Fool Australia.

More reading

• TGIF: Here’s why ASX 200 energy shares are outperforming today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Here are the 3 most heavily traded ASX 200 shares on Friday

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.

from The Motley Fool Australia https://ift.tt/Z5GSgqk

The Core Lithium Ltd (ASX: CXO) share price is slumping today, down 8.2%.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium producer closed yesterday at $1.40 and are currently trading for $1.28.

The Core Lithium share price had been trending higher since Labor’s election win, with the new government’s commitment to steeper emissions cuts spurring interest in critical battery metals like lightweight, conductive lithium.

But new research out from Goldman Sachs looks to have reversed that trend, with most every ASX lithium share deep in the red today.

What is Goldman Sachs forecasting?

The global broker believes that investor exuberance has exceeded current market reality in the lithium space.

Despite noting that “battery metals will play a crucial role in the 21st century global economy”, Goldman said (quoted by The Australian), “We see the battery metals bull market as over for now.”

The end of the current bull market, Goldman added, comes after “a surge in investor capital into supply investment tied to the long-term EV demand story… has in turn generated an outsized supply response well ahead of the demand trend in focus.

“In this context, we see prices on a downward trajectory over the course of the next two years, with a sharp correction in lithium, and to a lesser extent cobalt.”

Core Lithium share price snapshot

No one likes to see a stock they’re holding sink 8% on any given day.

But even with today’s fall factored in, the Core Lithium share price remains a top performer over the mid and long-term.

Year-to-date, shares are up 108%, compared to the 5% loss posted by the ASX 200.

If you’d bought shares 12 months ago, you’d be sitting on a gain of 429%.

And the Core Lithium share price is up an eye-popping 1,714% over the past 5 years.

The post Core Lithium share price tumbles 8% as Goldman forecasts ‘sharp correction in lithium ‘ appeared first on The Motley Fool Australia.

More reading

• Why is the Pilbara Minerals share price cratering 17% today?
• Why has the Core Lithium share price surged 6% today?
• Here’s why the Core Lithium share price is storming higher
• Here are the top 10 ASX shares today
• Lighting up the market: ASX lithium stocks surge again on Tuesday

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.

from The Motley Fool Australia https://ift.tt/320Gwsx

The Sayona Mining Ltd (ASX: SYA) share price is tanking on Wednesday despite only silence from the company. However, there’s been plenty of news on lithium ­lately.

At the time of writing, the Sayona share price is 18.75 cents, 14.77% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has just tipped into the red, down 0.03%, while the All Ordinaries Index (ASX: XAO) is also down 0.21%.

Let’s look at what might be weighing on the lithium explorer and developer’s shares on Wednesday.

What’s going wrong with the Sayona share price?

The Sayona share price is suffering alongside many of its peers on Wednesday.

The sell-off facing numerous lithium miners might have been spurred by negative sentiment about the value of lithium and a major decision from Argentina.

The South American nation has set a reference price of US$53 per kilogram of lithium, reports The Australian.

The decision reportedly comes after Argentina flagged irregularities in shipments.

Additionally, Goldman Sachs was said to have tipped the end of the battery metals boom earlier this week.

“[W]e see the battery metals bull market as over for now,” Goldman analysts Nicholas Snowdon and Aditi Rai were quoted by Bloomberg as saying.

They reportedly predict the spot price of lithium will fall to slightly higher than US$16,000 per tonne next year.

Though, the analysts were said to believe lithium’s value will take off again in the second half of the decade.

It’s impossible to say whether the happenings are weighing on the Sayona share price today. But at least it’s not alone in the red.

It’s joined by lithium giants Allkem Ltd (ASX: AKE), Core Lithium Ltd (ASX: CXO), Mineral Resources Limited (ASX: MIN), and Pilbara Minerals Ltd (ASX: PLS).

And despite today’s falls, the Sayona share price is around 48% higher than it was at the start of 2022. It has also gained 348% since this time last year.

The post Why is the Sayona Mining share price tumbling 14% on Wednesday? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Sayona Mining share price is leaping 6% today
• Why is the Sayona Mining share price in a trading halt?
• Why investors are saying sayonara to Sayona Mining shares this week
• Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling
• Why Incitec Pivot, Openpay, PolyNovo, and Sayona Mining shares are sinking

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 Goldman Sachs. 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.

from The Motley Fool Australia https://ift.tt/kclbzQj