S&P/ASX 200 Index (ASX: XJO) energy shares are in focus as the companies’ management present their views at the Australian Petroleum Production and Exploration Association (APPEA) industry conference today.

The burning topic, as you’d expect, is the global energy crisis. A crisis that saw Brent crude oil rocket to US$128 per barrel in March and continue to trade at US$113 per barrel today. Similar supply shortages amid resurgent demand sent LNG and coal prices to all-time highs this year.

Net zero ambitions collide with global conflicts

Environmentalists and activist investors have been pushing hard to stymie the development of new fossil fuel projects, eyeing a world with net-zero emissions by 2050.

While addressing global warming is obviously important, the lack of new exploration and development in recent years has left the world open to today’s crisis, according to managers of the ASX 200 energy shares.

And that’s really come to the forefront following oil-rich Russia’s invasion of Ukraine and the resulting embargos on Russian energy exports.

Global energy scarcity ‘frightening’

Addressing the APEA conference, Santos Ltd (ASX: STO) CEO Kevin Gallagher said (courtesy of The Australian):

We are watching an energy crisis play out in Europe right now, but we have on our doorstop a prime example of what happens if the energy transition is focused only on stopping new oil and gas projects.

We’ve had a decade of moratoriums, shutdowns and lockouts in resource-rich states and territories. And, as I have said for a number of years, the resulting scarcity of new developments today is frightening, with forecasts of tight supply over coming years.

Meg O’Neil, CEO of ASX 200 energy share Woodside Petroleum Limited (ASX: WPL), said the world hasn’t experienced this level of energy crisis in 50 years:

I think Russia’s invasion of Ukraine really has catalysed the energy security conversation in a way that it’s not been done since the 1970s with the Arab oil embargo.

Nations and political leaders first and foremost think about their home patch before thinking about their role in the global world. And the short-term implication is that there are challenges on reliability and challenges on affordability.

APPEA chairman Ian Davies added that halting new oil and gas projects has had no impact on global emissions levels:

The focus of our opponents on stopping fossil fuel projects has had no effect on consumer demand, and no effect on emissions reduction. What it has done is to push fossil fuel developments to places such as the Middle East and Russia. This has created a supply crunch and has raised prices, hurting people and economies around the globe.

ASX 200 energy shares investing in carbon capture

While not everyone is convinced by the technology, Santos has carbon capture projects running at 27 locations across the world.

“The new focus on stopping oil and gas projects in environmentally responsible jurisdictions such as Australia is centred around discrediting a proven technology for low-cost, large-scale emissions reduction – carbon capture and storage,” Gallagher said (quoted by The Australian).

“Yet CCS has been done before. We are doing it now in 27 commercial projects around the world. And it works,” he added.

How have these ASX 200 energy shares been tracking

With some strong tailwinds thrown up by soaring energy prices, Santos shares have gained 25.4% year-to-date.

Rival ASX 200 energy share Woodside has performed even better, with shares up 36.6% in 2022.

That compares to a year-to-date loss of 5.6% posted by the ASX 200.

The post ASX 200 energy shares in focus amid frightening global supply crisis appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• The Santos share price lifts amid joint venture news
• Woodside share price rises after merger clears final regulatory hurdle
• Brokers name 2 ASX 200 mining shares to buy
• 5 things to watch on the ASX 200 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.

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of Wall Street and is charging higher. The benchmark index is up 0.8% to 7,168.5 points.

Here’s what is happening on the ASX 200 today:

Fortescue’s leadership changes

The Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher today. This follows the announcement of a raft of leadership changes that are being made as part of its evolution into a global green renewables and resources company. One key change will see Dr Andrew “Twiggy” Forrest AO return to lead Fortescue as its Executive Chairman. He will oversee the iron ore business for an interim period to help drive the company’s transition when its current CEO, Elizabeth Gaines, concludes her tenure in August.

Boral downgrades earnings guidance

The Boral Limited (ASX: BLD) share price is sinking today after the building products company revealed that its earnings have taken a hit from recent inclement weather and higher energy prices. This means that Boral will fall short of its underlying earnings before interest and tax (EBIT) guidance of $145 million and $155 million.

BlueScope upgrades its earnings guidance

The BlueScope Steel Limited (ASX: BSL) share price is pushing higher after the steel producer upgraded its earnings guidance. Thanks to strong demand, the steel producer has lifted its underlying EBIT guidance for the second half of FY 2022 to between $1.375 billion to $1.475 billion. This compares to its prior guidance of $1.2 billion to $1.35 billion.

ASX 200 best and worst performers

The best performer on the ASX 200 on Wednesday has been the Megaport Ltd (ASX: MP1) share price with a 5.5% gain following a rebound in the tech sector. Going the other way, the Eagers Automotive Ltd (ASX: APE) share price is the worst performer with a 6% decline. This follows a trading update which revealed strong demand but tough supply conditions.

The post ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles appeared first on The Motley Fool Australia.

More reading

• Here’s why the Eagers share price is sliding today
• ‘Strong demand’: Bluescope share price strengthens on guidance upgrade
• Boral share price down 3% on earnings hit
• Why I think these are the best ASX dividend shares to buy right now
• Fortescue share price on watch after Twiggy returns to top job

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

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Shares of Transurban Group (ASX: TCL) are lifting in early trade on Wednesday and are now fetching $14.22.

The Transurban share price has been on a gradual walk northwards these past few months. Transurban shares are now clipping a 4% gain since trading resumed in January.

Top broker remains bullish on Transurban shares

In a recent note, analysts at major investment bank JP Morgan retained its overweight rating on Transurban. The broker values the company at $15.85 per share.

Sharing its investment thesis on the company, JP Morgan noted Transurban’s wide geographical footprint which spans several jurisdictions.

“[Transurban] has the largest portfolio of toll roads in Australia, and its traffic growth is relatively predictable and has historically materially outpaced GDP growth,” the broker said.

“Traffic growth per year has typically been 2-4% and has averaged 3%, but going forward we expect 2%,” it went on to add.

“We believe development completions (WCX, NCX) will be cash flow accretive coupled with built-in annual toll increases of at least CPI or 4%.”

JP Morgan notes one other factor, which is Transurban’s apparently ‘underappreciated’ dividend which appears juicier when looking into the future. This might be just what investors who hold Transurban shares want to hear.

The broker argues the outlook for Transurban’s dividend is “materially improving from FY23”. This is based on several factors, including “inflation linked tolls; and structural changes to traffic flow through.”

“We forecast a dividends per share compound annual growth rate (CAGR) of 10% p.a. over FY21-FY31 believing this has been underappreciated.”

Sentiment tilted to bullish

Six other analysts join JP Morgan in rating Transurban shares a buy right now. Whereas five and three brokers say it’s a hold and sell, respectively, per Bloomberg data.

The consensus price target from this list is $14.27 per share. This places questions on whether Transurban shares are at fair value right now or not.

In the last 12 months investors have rallied Transurban by 3%. Meanwhile, the wider S&P/ASX 200 Index (ASX: XJO) market has settled on a 1% gain.

The post ‘Too early to brake for the next exit’: What this top broker likes about Transurban shares appeared first on The Motley Fool Australia.

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• Macquarie picks ASX 200 shares to buy in this volatile environment
• Broker names 3 ‘champion’ ASX 200 shares to buy and hold
• What drove the Transurban share price higher on Monday?
• 2 ASX dividend shares analysts have named as buys for income investors

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 AnteoTech Ltd (ASX: ADO) share price is on the move today.

This comes after the nanotechnology company announced a regulatory update regarding its COVID-19 Rapid Antigen Test (RAT).

At the time of writing, AnteoTech shares are soaring 32.98% higher to 12.5 cents a pop.

AnteoTech expands market access

Investors are fighting to get a hold of the AnteoTech share price after the company received regulatory approval in Europe.

According to its release, AnteoTech advised it has successfully registered an updated EuGeni COVID-19 (RAT) in Europe. This comes under the In Vitro Diagnostic Directive (IVDD) 98/79/EC Regulations.

Management stated that the new registration is for the same core SARS-CoV-2 Ag Rapid Diagnostic Test registered in April 2021. However, this now covers multiple use claims to include combined nose and throat sampling and nasal mid-turbinate sampling.

By securing the latest registration, this strengthens EuGeni COVID-19 RAT’s competitive position by broadening sampling methods to current European trends.

Currently, the European clinical trial that is underway is also evaluating the updated multiple-use claim to be included in the EU Common List registration application.

AnteoTech said it will phase out the original nasopharyngeal test following orders for the updated multiple-use claim test kits.

About the AnteoTech share price

Despite today’s euphoric gains, the AnteoTech share price has lost around 60% in value over the past 12 months.

The company’s shares touched a 52-week low of 8.5 cents last week after being pounded by the broader market weakness.

Based on valuation metrics, AnteoTech presides a market capitalisation of roughly $374.3 million.

The post Why the AnteoTech share price is rocketing 33% today appeared first on The Motley Fool Australia.

More reading

• ‘Too early to brake for the next exit’: What this top broker likes about Transurban shares
• Ready for takeoff? Top broker sees smooth runway for Qantas shares in 2022
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• Why Bitcoin and Ethereum popped on Tuesday
• Here’s why the Eagers share price is sliding today

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

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As global travel gradually makes a comeback, travel shares are front and centre with market pundits evaluating their next moves on the sector.

After a return to green territory in 2022, the Qantas share price has managed an 11% gain since trading resumed in January.

Today, Qantas Airways Ltd (ASX: QAN) shares lifted from the open and now trade at $5.56 apiece, up 2.21%.

In wider market moves, the S&P/ASX 200 Industrials Index (ASX: XNJ) is up 1.1% in morning trade on Wednesday.

Are Qantas shares set for takeoff?

Analysts at investment bank JP Morgan are overweight on Qantas shares and value the airline at $6.40 per share.

The broker is constructive on Qantas given current industry headwinds, noting “the airline industry is in the midst of its greatest-ever challenge”.

In a note to clients, JP Morgan said:

Against this backdrop, we see QAN as being well positioned, given…it has taken material costs out of its business, approximately $1 billion p.a. of which are likely to be ongoing savings from FY23 [and] its high proportion of earnings from domestic and loyalty at ~70-75% of earnings.

JP Morgan also likes Qantas’ “strong relative balance sheet positioning; and more favourable competitive position – both domestically and internationally”.

With travel activity and momentum improving domestically, additional international destinations opening and Loyalty continuing to generate cash, we reiterate our overweight recommendation and price target of A$6.40.

Meanwhile, nine other brokers advocate buying Qantas shares at the moment, whereas three rate the company as a hold, according to Bloomberg data.

Just one broker, Credit Suisse, is urging its clients to sell Qantas shares at the minute.

From this list, the consensus price target is $6.32 apiece, suggesting there’s more upside yet to be baked in if this group has Qantas valued correctly.

In the last 12 months, the Qantas share price has climbed 21% into the green on the back of solid gains in 2022.

The post Ready for takeoff? Top broker sees smooth runway for Qantas shares in 2022 appeared first on The Motley Fool Australia.

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• 4 ASX shares of the most trusted brands in Australia
• The Qantas share price is sitting around 40% below its all-time high. Is it a no brainer?
• Are ASX 200 travel shares already fully valued in May?
• Grounded! Why the Qantas share price is tanking 4% today
• ASX 200 midday update: NAB disappoints, Qantas announces acquisition

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 Weebit Nano Ltd (ASX: WBT) share price has been rocketing higher on Wednesday.

In morning trade, the semiconductor company’s shares are up 23% to $2.80.

Though, despite this gain, the Weebit Nano share price is still down by almost 40% from its February high.

Why is the Weebit Nano share price rocketing higher?

Investors have been bidding the Weebit Nano share price higher today despite there being no news out of the semiconductor company.

However, it is worth noting that the company has been active at an industry event this week.

This could mean that Weebit Nano has caught the eye of some investors during its presentations on Monday and Tuesday.

What is the event?

Earlier this month, Weebit Nano revealed that it will be participating in the 14th International Memory Workshop (IMW) 2022 in Dresden, Germany.

The release notes that IMW is the premier international forum for technologists to share and learn about new developments in memory technology.

At the event, Weebit Nano’s Chief Scientist Gabriel Molas was due to outline test results of Weebit ReRAM in 28nm. This was to include details about the technology’s endurance and reliability at high temperatures.

It is possible this presentation went well and has piqued interest in the company.

Though, time will tell if Weebit Nano’s technology, and that of rival BrainChip Holdings Ltd (ASX: BRN), will ultimately amount to anything. But given the competition from world class, global semiconductor companies that are spending billions on research and development activities each year, I would be very surprised if they do.

For that reason, I would suggest investors approach BrainChip and Weebit Nano with extreme caution.

The post Why is the Weebit Nano share price rocketing 23% higher? appeared first on The Motley Fool Australia.

More reading

• Why Bitcoin and Ethereum popped on Tuesday
• Here’s why the Eagers share price is sliding today
• ‘Strong demand’: Bluescope share price strengthens on guidance upgrade
• Why is the James Hardie share price surging higher today
• What’s sending the Northern Star share price higher today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 

The market is in a good mood again on Tuesday, and that’s helping cryptocurrency values push higher. Bitcoin (CRYPTO: BTC) was up as much as 3.5% in the past 24 hours, as of 2 p.m. ET, but is still off 4.7% in the past week. Its smaller rival Ethereum (CRYPTO: ETH) is up 3.2% today but is off 13.1% in the past week. 

Silvergate Capital (NYSE: SI), which is a digital finance company, has also seen its value rise as much as 13.2% in trading today, although it’s up 10.9% as I’m writing. Why is the digital currency market popping today? 

So what 

Last week was one of the worst we’ve seen in the crypto industry, with TerraUSD losing its peg to $1 and eventually collapsing both the stablecoin and Terra (LUNA). This led to a flurry of selling and multiple stablecoins losing their pegs momentarily. 

Some stability returned to the market over the weekend, and that’s brought some confidence back for investors. The values of cryptocurriencies like Bitcoin and Ethereum are on the rise again, and altcoins are climbing as well. 

As quickly as the crypto market dropped last week, we need to keep in mind that it’s much more mature than it was just a few years ago. Thousands of developers have moved into the industry, building on cryptocurrencies like Bitcoin and Ethereum, and these businesses are much more ingrained than in the crypto winter of 2017. Long term, I think the future looks brighter than it did a few years ago. 

Now what 

Volatility continues to be the norm in cryptocurrencies, and today is another reminder of that. But I think it’s important to keep in mind what’s being made here with payment systems and digital projects now being built on top of the blockchain. As that continues, it should help Bitcoin and Ethereum long term. 

I continue to be bullish on the crypto market, but there will be volatility in the meantime. A lot of money has been made and lost simply by trading cryptocurrencies over the past year, and we’re entering a new phase where utility, not trading, will likely generate the most value. That could lead to some investors abandoning the market as others move in, which isn’t bad as the industry matures. 

A down market like this can be a buying opportunity for investors willing to hold for the long term as well. Great companies and projects are built in a down market, so the cryptocurrencies and projects built on top of the blockchain that can thrive now will be the projects we talk about a decade from now, as long as investors are willing to buy and hold quality digital assets. 

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

The post Why Bitcoin and Ethereum popped on Tuesday appeared first on The Motley Fool Australia.

More reading

• Using Bitcoin to diversify your portfolio? Read this
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• Good riddance to meme speculators ditching Bitcoin: expert
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• 2 cryptocurrencies that could dwarf Shiba Inu

Travis Hoium has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Silvergate Capital Corporation. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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Shares in Eagers Automotive Ltd (ASX: APE) have sunk from the open today and now trade more than 3% down at $11.52 apiece.

Investors might be selling off Eagers Automotive shares today in response to (ASX: APE) have sunk from the open today and now trade more than 3% down at $11.52 apiece.” target=”_blank” rel=”noreferrer noopener”>the company’s market update for the half year ending June 2022.

In wider market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) index has spiked 80 basis points into the green.

What did Eagers release?

Eagers gave commentary of its performance during the half to date and noted that market mechanics or the used car market continue to show bullish signs.

“The underlying performance of the business continues to benefit from a strong market where demand for new vehicles continues to materially exceed supply,” the company said.

“This has resulted in an increase in our record new car order book of more than 25% since 31 December 2021.”

On this backdrop, “new car margins” have also been supportive of sales growth, whereas the company says its finance performance is above industry levels.

What does Eagers expect moving forward?

The company notes there will be an impending slowdown in its core business due to softening output of new vehicles delivered in 1H FY22.

Despite the continuing strength of our underlying business, positive operational metrics and record order book, an anticipated reduction in the number of new vehicles delivered to customers in the first half of 2022 is expected to impact our half year financial performance.

This is due to the supply of new vehicles being impacted by multiple global events, largely attributable to the on-going effects of semi-conductor shortages in the industry and compounded by the both the Ukraine conflict and China’s on-going COVID lockdowns.

Consequently, Eagers is projecting underlying operating profit before tax (OPBIT) to land in the range of $183 million–$189 million.

This compares to underlying OPBIT of $214.8 million for the prior corresponding period (pcp) on a like for like basis, it says.

Similarly, Net Profit Before Tax (NPBT) for the half year is expected to be in the range of $225 million–$240 million, down from $267.4 million for the pcp.

“The forecast results in this update are subject to external audit review which will be conducted
following completion of the half year on 30 June 2022,” Eagers concluded.

Eagers Automotive share price snapshot

In the last 12 months, the Eagers Automotive share price has slipped more than 20% into the red, having clipped a 14% loss this year to date.

The post Here’s why the Eagers share price is sliding today appeared first on The Motley Fool Australia.

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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 BlueScope Steel Limited (ASX: BSL) share price is getting attention on Wednesday morning following its latest announcement.

Shares in the big-name steel producer are swelling by 2%, trading at $18.30 per share in the process. Although, earlier in the session, the company’s shares hit an intraday high of $19.24. For context, it is a rather green morning on the ASX. The S&P/ASX 200 Index (ASX: XJO) is trading 1.05% higher within the first hour of the morning bell.

Second half looks more solid

Working in a commoditised business, much of BlueScope’s financial success comes down to the market price of steel. Today, the $8 billion steel manufacturer has informed investors that this time prices are working in its favour.

According to the release, shareholders are in for a better than previously expected result for the second half of FY2022. The company has lifted its forecast for underlying earnings before interest and tax (EBIT) to between $1.375 billion to $1.475 billion. Whereas, the prior guidance was for $1.2 billion to $1.35 billion.

The guidance revision represents an approximate 15% lift to the lower range and around 9% increase to the higher end. This improvement is likely behind the strong BlueScope share price today. However, BlueScope caveated this guidance by noting it was subject to spread, foreign exchange, and market conditions.

Importantly, the reason for the upgrade is the stronger outlook laying ahead for the company’s North Star and North America coated business. Meanwhile, the other areas of BlueScope’s operations remain in line with prior guidance.

Commenting on the update, BlueScope managing director and CEO Mark Vassella said:

Throughout recent macroeconomic and geopolitical volatility, BlueScope has continued to demonstrate strength and resilience in its business performance.

In the current strong demand environment, the entire BlueScope team is working as hard as they can to improve our service levels, which have been impacted by supply chain and pandemic-related disruptions.

The company’s half-year results are expected to be released on 15 August 2022.

BlueScope share price recap

The BlueScope Steel share price is down 16.5% since the beginning of the year, despite steel prices being slightly higher.

It appears the market is cautious about valuing BlueScope based on its current earnings. The reason for this observation is the company currently trades on a price-to-earnings (P/E) ratio of 3.6 times. Comparatively, the metals and mining industry carries an average P/E of 10.4 times.

The post ‘Strong demand’: Bluescope share price strengthens on guidance upgrade appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 James Hardie Industries plc (ASX: JHX) share price more than rebounded from yesterday’s sharp losses after a top broker upgraded its shares.

The ASX building materials supplier is “too cheap to ignore”, according to Morgan Stanley. The broker upgraded its recommendation on James Hardie to “overweight” from “equal-weight” following the company’s results announcement that triggered the sell-off.

When 36% profit growth isn’t enough

The company posted a 36% increase in FY22 adjusted net profit to US$620.7 million which didn’t impress the market. As a result, the James Hardie share price tumbled 3.5% on Tuesday although it regained all the loss, and then some, this morning when it surged as high as 6% to $39.79.

At the time of writing, the company’s share price has settled at $39.00, 4% higher than yesterday’s close.

It wasn’t James Hardie’s earnings or sales figures that scared investors. If anything, net profit was largely in line with consensus expectations.

Is too much bad news priced into the James Hardie share price?

Yesterday’s negative reaction to the James Hardie share price likely stems from worries about the impact of rising interest rates on housing.

Morgan Stanley said:

JHX is a quality business with a true structural growth theme.

Current mortgage rate concerns are valid – but after material recent de-rating, we find housing market weakness more than priced in, particularly given JHX’s skew towards R&R [repair and renovation] markets.

Building up to strong growth in FY23

Around 65% of the group’s business is from R&R with the balance from new builds. The broker also reckons the company could steal market share to maintain its growth rate.

It also helps that James Hardie has a full backlog of orders that should keep it busy till FY23, if not beyond.

Further, management is sticking to its FY23 earnings guidance for net profit of US$740 million to US$820 million.

It also increased its revenue growth forecast for its North America Fibre Cement (NAFC) business to 18% to 22%. That’s up from its original expectation of between 16% and 20%.

Morgan Stanley’s 12-month price target on the James Hardie share price is $51 a share.

What other brokers are saying about the James Hardie share price

But the broker isn’t the only one that is bullish on the shares. Citigroup and UBS have reiterated their buy call on James Hardie.

Citi acknowledges the risk of rising rates, particularly in the US. But it estimated that only around 2% to 3% market growth is factored into the company’s North American sales guidance.

UBS also pointed out that its buy thesis on James Hardie is largely unchanged despite the macroeconomic risks.

The Citi and UBS 12-month price targets on the James Hardie share price are $44.30 and $57.70 respectively.

The post Why is the James Hardie share price surging higher today appeared first on The Motley Fool Australia.

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• ASX 200 midday update: Brambles takeover talks end, resources shares charge higher
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Motley Fool contributor Brendon Lau 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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