Tag: Motley Fool

The Appen Ltd (ASX: APX) share price has come under significant pressure on Friday morning.

In early trade, the artificial intelligence data services company’s shares are down 25% to $6.22.

This compares to the Appen share price pre-takeover offer of $6.40.

Why is the Appen share price sinking?

Investors have been selling down the Appen share price on Friday in response to news that Telus International has withdrawn its takeover proposal.

In case you missed it, on Thursday, Canada’s Telus International made a $9.50 per share takeover proposal. Telus International is the owner of one of Appen’s key competitors, Lionbridge.

Its offer represented a 48% premium to Appen’s last close price and valued the company at approximately $1.2 billion.

And while Appen was keen to engage with Telus International, it wasn’t overly keen on the price offered. Management explained that it was “in discussions with Telus to seek an improvement in the terms of the Indicative Proposal.”

But rather than improving the offer, Telus walked away immediately from the table, taking its proposal with it.

Why did the takeover proposal collapse?

Unfortunately, Telus walked away from takeover talks without comment, which isn’t very helpful.

However, it is worth noting that both companies were in the process of signing a confidentiality agreement prior to the takeover news leaking to the press. It is therefore possible that Telus wanted to keep talks private and has walked away now they have become public.

At its annual general meeting (AGM), management commented:

As you would be aware, details of their proposal leaked just prior to the AGM. As a result of the loss of confidentiality, we were required to disclose the proposal. Yesterday afternoon Telus sent us a letter that indicated they were revoking their offer, without providing any rationale or explanation. We sought to reach out to Telus through their advisers but have not been able to establish contact.

Alternatively, Telus may have been alarmed by Appen’s poor performance so far in FY 2022.

As no material non-public information had been provided to Telus, it will have seen Appen’s trading update at the same time we did yesterday. And it wasn’t pretty.

That update revealed that Appen’s year-to-date revenue at the end of April was lower than it was during the prior corresponding period. In light of this, the company expects its first half earnings before interest, tax, depreciation and amortisation (EBITDA) to be “materially lower than the prior corresponding period.”

Telus may believe its offer was too generous given this abject performance and therefore withdrew it.

Potential second strike at the AGM?

In other news, Appen is holding its annual general meeting today. Last year, the company’s remuneration report was given its first strike by angry shareholders. Almost 50% of votes were cast against it.

If shareholders deal the report a second strike today, it could lead to a board spill. This will make it a very interesting vote and one to keep an eye on.

The post Appen share price crashes 25% after Telus withdraws takeover offer appeared first on The Motley Fool Australia.

More reading

• Appen share price on watch amid takeover offer collapse
• 5 things to watch on the ASX 200 on Friday
• Action aplenty: Here’s why the Appen share price has now been halted
• Will the CA$8.1 billion Telus International up its bid for ASX-listed Appen?
• Why ALS, Appen, Objective Corp, and WiseTech shares are pushing 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 positions in and has recommended Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

What happened

Despite a good start for the stock market today, cryptocurrencies struggled as investors digested the Federal Reserve’s recently released minutes from its May meeting.

At 10:53 a.m. ET, the price of Bitcoin (CRYPTO: BTC) had fallen roughly 2.2% over 24 hours. Meanwhile, the price of Dogecoin (CRYPTO: DOGE) was trading 5.7% lower, and the price of Shiba Inu (CRYPTO: SHIB) was trading 5.5% down. 

So what

Yesterday, minutes were released from the Fed’s May meeting, which revealed the Fed may be willing to raise its benchmark overnight lending rate, the federal funds rate, potentially more aggressively than the market initially thought. The market has been expecting the federal funds rate to end the year in a range of 2.5% to 2.75%. It’s currently in a range of 0.75% to 1% after the 0.25% rate hike in March and then a half-point hike earlier this month.

“Most participants judged that 50 basis point (0.50%) increases in the target range would likely be appropriate at the next couple of meetings,” the minutes stated, adding that “a restrictive stance of policy may well become appropriate depending on the evolving economic outlook and the risks to the outlook.”

If the Fed raises rates higher than the market expects, that may not be so great for the likes of Bitcoin and other cryptocurrencies because higher interest rates make safer assets more appealing and riskier assets less appealing.

But there have been several recent voices from the Street saying that Bitcoin may be ready to turn the corner, which is likely good for other cryptocurrencies. JPMorgan Chase analyst Nikolaos Panigirtzoglou and his team have recently come out and said the fair value of Bitcoin is currently $38,000, which implies some good upside from Bitcoin’s current price of roughly $29,280 as of this writing. Panigirtzoglou in a research note called Bitcoin a “preferred alternative asset.”

“The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally,” he added in the note.

Furthermore, Yves Lamoureux, who heads his own macroeconomic research firm and who advised clients on Bitcoin’s impending fall last November, now believes Bitcoin could reach $100,000 by the end of 2023.

“I’m interested in Bitcoin because it is the king and that’s where institutional money will flow first. So always stick with the best. Everybody wants to be Bitcoin, but they’re not…don’t make it complicated, stick with Bitcoin,” Lamoureux recently told MarketWatch.

The main trigger event Lamoureux is watching for is Bitcoin miners seeing their rewards for mining new tokens cut in half, which could trim the overall supply, an event that occurs every four years and is slated to happen sometime in early 2024. 

Now what

Dogecoin and Shiba Inu appear to be following Bitcoin like most of the crypto markets today. I do not know whether JPMorgan and Lamoureux’s calls will be right or when Bitcoin will bottom. But I do think the world’s largest cryptocurrency is here to stay and do consider it a long-term buy and hold.

I don’t see any real reason to invest in Dogecoin and Shiba Inu, but given their current place in the crypto world, they will likely continue to move with the broader crypto market, at least in the near term. 

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

The post Why Bitcoin, Dogecoin, and Shiba Inu are falling today appeared first on The Motley Fool Australia.

More reading

• This is the top performing crypto in 2022 so far, and it sure isn’t Bitcoin
• What do NFTs mean for the gaming industry?
• Looking to spend your crypto? Here are 5 things you can buy in 2022
• What to expect for the Bitcoin price heading into June
• Can Bitcoin play a role in a diversified ASX share portfolio?

Bram Berkowitz has positions in Bitcoin. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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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With the world and share markets in turmoil, all the professional investors are warning that caution needs to be exercised.

Being selective about the ASX shares that you buy is absolutely critical at the moment.

This is why it’s fascinating to hear a fund manager actually name some companies that they are backing.

Right now, many of those businesses are ones that have tailwinds unaffected by macroeconomic forces — such as rising interest rates, persistent inflation and supply chain constraints.

Wilson Asset Management portfolio manager Oscar Oberg this week had a couple of ideas:

Earnings upgrade coming

Rural construction equipment and services provider Maas Group Holdings Ltd (ASX: MGH) currently looks hot to Oberg’s team.

“It’s one of our largest positions in the portfolio,” he said at the WAM Vault Live event in Sydney.

“Over 60% of the shares upon issue were owned by the board and the founders, which is always a good sign.”

He likes that Maas Group operates in regional Australia, which has been a major beneficiary of the population shift out of big cities like Sydney and Melbourne over the past couple of years.

“We think that alone can drive a 10% to 15% earnings upgrade into the August result,” he said.

“It has a very strong balance sheet. It’s got a lot of property on the balance sheet.”

All this adds up to a bullish view of the Maas share price, despite the skittishness of the market.

“We think the stock can double over the next two or three years.”

Maas Group shares have fallen 11.9% for the year so far.

ASX shares trading at less than what assets are worth

Oberg’s second nomination, AMP Ltd (ASX: AMP), drew audible gasps from the crowd.

“I was talking to a gentleman outside and I saw his expression when I mentioned it,” he said.

“But we like it.”

The Wilson team likes that the sale of AMP Capital is now behind it, and what’s left behind seems to present decent value, considering its depressed share price.

“If you have a look at the net tangible assets of the business, it’s around $1.35 per share — we think that’s the worst case.”

AMP shares closed Thursday at $1.08.

“It’s trading at a 20% discount to its NTA, which is fantastic.”

But the biggest positive about the stock is what’s coming up for investors.

“Due to the sale of AMP Capital, they’re going to return all that money to shareholders, which will equate to about 50% of the current valuation of the company,” said Oberg.

“And there’s more asset sales to come, so we like that. It’s one of our largest [positions].”

The post ‘The stock can double’: Expert names 2 ASX shares market hasn’t woken up to appeared first on The Motley Fool Australia.

More reading

• Can the AMP dividend yield really push to 15%?
• The board has acknowledged a ‘disappointing experience’ in relation to the AMP share price. What now?
• The ONE THING that could rock ASX shares from the election result: expert
• Why missing the market bottom is okay: expert
• When might the dividend drought break for AMP shares?

Motley Fool contributor Tony Yoo 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 Novonix Ltd (ASX: NVX) share price is on course to end the week on a high.

In morning trade, the battery materials and technology company’s shares are up 6.5% to $3.98.

Why is the Novonix share price surging higher?

Investors have been bidding the Novonix share price higher today despite news that a key director is exiting the board. This appears to have been driven by improving investor sentiment in the battery materials sector, which has seen a number of lithium shares shoot higher today and offset this news.

According to the release, billionaire coal magnate Trevor St Baker AO has retired from the Novonix board with immediate effect.

The release explains that Mr St Baker is exiting the role due to excessive company board representations on behalf of the St Baker Energy Innovation Fund (SBEIF). This relates to a number of the companies in which the SBEIF has invested, including Novonix.

In addition, the exiting director advised that he will be devoting more time to the establishment of a second St Baker Energy Innovation Fund.

Mr St Baker explained:

I am really very pleased to have been able to contribute as a Director of NOVONIX in its exciting establishment as such an important player in the decarbonisation transformation of global energy and transport businesses.

He also revealed that he remains a firm believer in Novonix’s growth story and it will remain a key part of his investment portfolios.

I am also excited about the Company’s continuing growth as a significant battery material and energy storage solution provider as these sectors grow to serve these transformations, and my resignation should not reflect any diminution of interest by SBEIF or of the St Baker family in NOVONIX as a serious growth stock in our investment portfolios.

What’s next?

Novonix’s Chairman, Admiral Bob Natter, thanked St Baker for his service and revealed that a succession plan is in place. He said:

The Board of NOVONIX greatly appreciates Trevor’s contribution to the growth and development of NOVONIX, as well as the continued commitment of SBEIF and the St Baker Family as shareholders and investors in NOVONIX. We have a strong Board succession plan in place, and together we look forward to the continued growth of the company.

The post Novonix share price surges higher despite billionaire’s board exit appeared first on The Motley Fool Australia.

More reading

• Novonix up 15% on Friday as the market recovers
• ASX 200 midday update: BHP, IGO, and Woolworths charge higher
• Why is the Novonix share price sinking 8% today?
• ASX 200 midday update: Aristocrat’s earnings beat, Webjet flops, retailers smashed
• Novonix share price fights to stay in the green on Monday

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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So far 2022 has not been a year of positive returns for the S&P/ASX 200 Index (ASX: XJO). With the benchmark index down around 6% year-to-date, many well-known ASX shares within the top 200 have suffered.

For some, the damage means share prices are now flirting with the lowest levels witnessed in the past year. While this is might be painful, there’s a chance this could represent an opportunity for investors to pick up some quality companies at bargain-bin prices.

Here’s a look at three established ASX 200 shares that have been beaten up.

Profitable ASX 200 shares on the low

Bapcor Ltd (ASX: BAP)

Bapcor is an ASX 200 share that has been around for more than 50 years. What initially started out as Burson Group in 1971, Bapcor has grown to include automotive brands Autobarn, Midas, and Toperformance.

Importantly, the company maintained commendable high single-digit growth in revenue and earnings last year. Simultaneously, Bapcor has been lifting its dividends to shareholders consistently for the last five years.

The Bapcor share price is down approximately 24% over the past year. At present, shares are fetching a $6.07 price, slightly above the 52-week low of $6.00 per share.

ARB Corporation Limited (ASX: ARB)

After several years of steady growth, this ASX 200 share has enjoyed a rapid acceleration over the past 18 months. The 4X4 accessories manufacturer avoided getting bogged in 2020 — and instead, scaled its sales like a beast.

To put the company’s growth into context, revenue for the last 12 months ending June 2020 came in at $466.9 million. Fast forward to the 12 months ending December 2021, and that figure had grown by 50% to $701.2 million.

The ARB share price is 25% underwater compared to where it was a year ago. Right now, investors can snap up ARB shares at $30.55 apiece, 5 cents above its 52-week low.

Super Retail Group Ltd (ASX: SUL)

Lastly, another ASX 200 share that has stood the test of time — operating for more than 50 years — is automotive retailer Super Retail Group. To cut to the chase, the group owns a well-known competitor to Autobarn, Supercheap Auto. However, it also mixes in a variety of other outdoor-centric businesses including Rebel, BCF, and Macpac.

Much like the other companies listed above, Super Retail Group experienced a rush of growth during the FY2021 financial year. In turn, profit margins expanded from 3.9% to 8.7%, as cashed-up shoppers unloaded a spending flurry. Since then, revenue and earnings have begun to retrace to an extent. Yet, both metrics are still significantly above pre-pandemic levels.

The Super Retail Group share price is licking its wounds having tumbled 28% in the space of a year. For opportunistic investors, this presents a chance to grab shares in the company at $9.22 — 5 cents above its 52-week low.

The post Are these 3 ASX 200 shares trading around 52-week lows a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 retail shares getting hammered on Thursday?
• 3 ASX shares you might be surprised to learn pay dividends
• 2 strong ASX dividend shares hiding in plain sight
• These ASX shares pay you to own them
• These were the worst performers on the ASX 200 last week

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 Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended ARB Corporation Limited and Bapcor. 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.

What happened

For the second day in a row, shares of Tesla (NASDAQ: TSLA) stock zoomed higher on Thursday — and indeed, after shooting up 4.9% yesterday, Tesla’s 5.8% gain as of 11:15 a.m. ET today suggests that momentum may be building behind the electric cars stock.

Once again, you can thank Cathie Wood for that.

So what

As I pointed out yesterday, on Monday and Tuesday this week, growth investor Wood swooped in to buy nearly 42,000 Tesla shares for her various ARK ETF funds. These purchases marked a sharp reversal from her actions over the past two months, during which time she sold more than 490,000 Tesla shares.  

Investors are cheering Wood’s return to the Tesla market today — but are they also following in her footsteps a moment too late?

Now what

Consider: From late March through late May, Wood consistently sold Tesla stock from just over $1,000 a share to the point where it fell below $700. Now, Tesla stock is once again just dollars away from $700 — and while Wood is still buying, her pace has slackened quite suddenly.

After she scooped up 15,858 Tesla shares on Monday and another 26,081 on Tuesday, ARK’s website shows that Wood bought only 1,343 shares of Tesla on Wednesday. The website’s reports are a day behind, but the figures suggest that Wood’s buying spree may already be approaching an end — or at least taking a breather.

At the same time, we learned last night from a Securities and Exchange Commission filing that Elon Musk has decided to replace $6.25 billion worth of planned “margin loans” for his purchase of Twitter with $6.25 billion in additional “equity financing.” On the plus side, this appears to imply that much less Tesla stock will be tied up as collateral for Musk’s loans, but it also appears to imply that the Tesla CEO may sell another $6.25 billion worth of Tesla stock to raise the cash he needs to buy the social media site.  

Long story short: It sounds like Musk is about to start selling Tesla stock again — and at the same time that Wood may stop buying Tesla stock. If that’s the way this plays out, it won’t be great news for Tesla investors. 

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

The post Why Tesla stock keeps going up appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock raced higher today
• Why Tesla stock turned south today
• Why Tesla stock finally bounced today
• Nasdaq sell-off: 2 growth stocks billionaires were buying in Q1
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off

Rich Smith 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 and Twitter. 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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The Appen Ltd (ASX: APX) share price will be one to watch this morning.

The artificial intelligence data services company’s shares are due to return from a trading halt and are likely to tumble deep into the red.

Why is the Appen share price on watch?

On Thursday, the Appen share price rocketed 30% higher after Canada’s Telus International made a $9.50 per share takeover proposal. This was a 48% premium to its last close price and valued Appen at approximately $1.2 billion.

However, within a few hours the Appen share price was hurried into a trading halt pending a further update on the proposal.

Unfortunately, that update reveals that Telus International has withdrawn its takeover proposal no sooner than it was tabled.

According to the release, following the receipt of the proposal, Appen engaged with Telus and sought to agree an appropriate confidentiality and standstill agreement (NDA), after which Appen was prepared to make available limited business and financial information.

And while the two parties negotiated the NDA and Appen was expecting it to be executed by Telus imminently, Telus instead informed Appen that it was revoking its proposal.

What happened?

Appen advised that no reasons were given by Telus for the withdrawal of the proposal, which means speculation is now rife.

One potential reason is that Telus wanted to keep the negotiations private. However, clearly someone involved leaked the deal to the AFR, which proudly states that it “broke the news that Appen was being pursued by a potential acquirer on Wednesday evening, before the proposal was confirmed by Appen on Thursday morning.”

Because of this leak, Appen was required to disclose the indicative proposal to the market. This may not have gone down well with Telus, causing it to pull the plug on talks.

Alternatively, Telus may have been put off my Appen’s very poor trading update which accompanied the takeover announcement. Appen revealed that it “expects 1H FY22 EBITDA to be materially lower than the prior corresponding period.”

Shareholders will no doubt be hoping that Telus comes back with another offer or rumoured interest from a private equity firm materialises. But that is far from guaranteed.

One thing for sure, though, is that the Appen share price looks set for a rough ride on Friday.

The post Appen share price on watch amid takeover offer collapse appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Action aplenty: Here’s why the Appen share price has now been halted
• Will the CA$8.1 billion Telus International up its bid for ASX-listed Appen?
• Why ALS, Appen, Objective Corp, and WiseTech shares are pushing higher
• ASX 200 midday update: Appen rockets, Westpac super update

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

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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Catapult Wealth portfolio manager Tim Haselum explains why one particular ASX share would sit comfortably in his stable for years to come.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Tim Haselum: I went for an easy one here, and it’s just the ASX Ltd (ASX: ASX).

We like the fact that it’s a near monopoly, but obviously making some good moves upgrading the tech. They’ve had some wobbles and issues but that’s fine. 

I would say, look, if you’re on a 20-year timeframe, maybe I’d be a little bit worried about something happening, but on a four-year timeframe, we think that the earnings are pretty predictable and stable here. We think there’s going to be lots of capital raisings here, equity market volumes seem to be relatively strong.

We think that now the RBA is not trying to tamper with [the] yield curve, the bond trading revenue’s going to come back, I just think when it comes to predictability of earnings and market share, ASX is one that’s for four years, there’s no worries there. It’s pretty high quality in our books.

MF: Great to hear your opinion on ASX the stock, because we don’t have a lot of analysts that cover it.

TH: Probably because it’s boring!

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

TH: I would say the missed opportunity, it has to be Afterpay, right?

For us, we looked at it and we were just like, “The valuations are just… Where are you pulling it from?”

You could argue that the buy now, pay later segment in general, that was our generation’s tech boom. It was insane. 

We just thought it looked so frothy and even though Afterpay had the first-mover advantage and it did look prestigious and it clearly got a lot of traction, it was just too hard a call to put it in the portfolio. 

What’d it get to? $7 at the bottom of COVID [in March 2020]?

MF: Yes, around there.

TH: The amount of upside that we missed out on was humongous, but for us when we think about quality and value and those measures, it was just too hard a call to put it in. 

I mean, I know a lot of people were pumping up Zip Co Ltd (ASX: ZIP) and look what happened to that, right? Maybe flip a coin, Afterpay or Zip, and maybe it was right just to stay away but that was a tough one. Especially when it got taken over, the regret… I was like, “damn it”!

MF: But one could argue, if it was still a standalone stock now, it would be quite low.

TH: That’s right. Yeah.

The post ‘An easy one’: Expert reveals which ASX share he’d hold for 4 years appeared first on The Motley Fool Australia.

More reading

• Why is the Zip share price beating the ASX 200 today?
• The Zip share price is down 80% in 2022. Should you cut your losses?
• ‘Just horrific’: Why this fundie says Zip should abandon its Sezzle takeover
• The Zip share price is rocketing 6% today. Here’s why
• Zip just joined forces with another ASX 200 company

Motley Fool contributor Tony Yoo 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 ZIPCOLTD FPO. 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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If you’re looking to combat rising inflation with some ASX 200 dividend shares, then the two listed below could be worth considering.

Analysts have recently named these ASX 200 dividend shares as buys. Here’s what you need to know about them:

National Australia Bank Ltd (ASX: NAB)

The first ASX 200 dividend share that analysts rate as a buy is banking giant NAB.

Goldman Sachs is very positive on NAB due to its balance sheet mix, which the broker feels provides the best exposure to the domestic system growth. It also highlights that NAB’s franchise is performing strongly, growing at or above system growth in most segments, and expects this to continue.

It commented: “[NAB] remains our preferred sector exposure given: i) NAB’s balance sheet mix provides the best exposure to the domestic system growth we foresee over the next 12-18 months, which should favour commercial over mortgage lending, ii) NAB’s franchise is performing strongly, growing at or above system growth in most segments, iii) NAB’s disclosure on NIM leverage to higher rates is even more optimistic than we previously estimated.”

In light of this, the broker has Goldman Sachs recently retained their conviction buy rating on the bank’s shares with a $34.17 price target.

Its analysts are also forecasting attractive dividend yields in the near term. They have pencilled in fully franked dividends of $1.50 per share in FY 2022 and $1.65 per share in FY 2023. Based on the current NAB share price of $31.57, this implies yields of 4.75% and 5.2%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities. This includes alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations in Australia, Southern Africa and South America.

Morgans is a big fan of the company. It currently has an add rating and $6.10 price target on the miner’s shares.

The broker commented: “We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.”

As for dividends, Morgans is forecasting fully franked dividends in the region of 26 cents per share in FY 2022 and 35 cents per share in FY 2023. Based on the current South32 share price of $4.65, this equates to yields of 5.5% and 7.5%, respectively.

The post Here are 2 ASX 200 dividend shares rated as buys by brokers appeared first on The Motley Fool Australia.

More reading

• NAB share price lifts amid BNPL product reveal
• Why is the NAB share price having such a cracker of a day?
• Do South32 shares have exposure to ‘green metals’?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• 3 reasons this broker thinks the NAB share price is great value

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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower. The benchmark index fell 0.7% to 7,105.9 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to jump

The Australian share market looks set to end the week on a positive note following a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 69 points or 1% lower this morning. In the US, the Dow Jones was up 1.6%, the S&P 500 rose 2%, and the Nasdaq stormed 2.7%.

Appen takeover offer withdrawn

The Appen Ltd (ASX: APX) share price could come crashing back down to earth on Friday after Telus International withdrew its takeover approach just hours after it was made public without comment. In addition, the artificial intelligence data services company released a particularly poor trading update when revealing the takeover proposal. Now, all the focus will be on that.

Oil prices storm higher

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a very positive finish to the week after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 3.2% to US$113.85 a barrel and the Brent crude oil price is up 2.75% to US$117.16 a barrel.

Gold price edges higher

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.15% to US$1,849.3 an ounce. The gold price rose despite the US Fed’s aggressive policy stance.

Westpac rated neutral

According to a note out of Goldman Sachs, its analysts have held firm with their neutral rating on Westpac Banking Corp (ASX: WBC) shares. Though, with a price target of $27.29, this implies material upside for investors. In response to the bank’s super fund merger and asset management sale, Goldman said: “We view these transactions as entirely consistent with WBC’s strategy of simplifying the overall group.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Action aplenty: Here’s why the Appen share price has now been halted
• How do ASX shares typically perform following a demerger?
• Why is the Zip share price beating the ASX 200 today?
• Will the CA$8.1 billion Telus International up its bid for ASX-listed Appen?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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