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The Air New Zealand Limited (ASX: AIZ) share price won’t be going anywhere on Wednesday.

This comes as the company requested that its shares be placed in a trading halt.

As such, the airline operator’s shares are frozen at 79 cents apiece.

It’s worth noting that Air New Zealand shares have lost more than 30% in value over the past month. You can find out about the details here.

Why is the Air New Zealand share price halted?

Prior to the market opening, the company requested the Air New Zealand share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement regarding the outcome of its “shortfall bookbuild of ordinary shares attributable to unexercised rights in its renounceable rights offer”.

Air New Zealand has requested the trading halt remains in place until Thursday 5 May or following the release of the announcement, whichever comes first.

Air New Zealand’s shortfall bookbuild

While details remain unknown about the pending outcome, we take a look at Air New Zealand’s shortfall bookbuild.

The company is conducting a bookbuild of approximately 274 million shares that were not taken up by eligible shareholders under the rights offer.

The price at which new shares will be issued under the shortfall bookbuild is the bookbuild price. This will be determined by Air New Zealand in consultation with the underwriters today. Although, management previously noted that it will be equal to or above the rights offer price of NZ$0.53 per new share.

Any shareholders who applied for additional new shares in the shortfall bookbuild will be allocated shares at the bookbuild price.

For those who did not take up their full entitlements in the rights offer, those shareholders will receive a pro-rata share of any premium between the bookbuild price and the rights offer price.

About the Air New Zealand share price

Since this time last year, Air New Zealand shares have fallen almost 50%.

This has mostly been attributed to its losses in the last couple of months following the company’s recapitalisation package.

On valuation grounds, Air New Zealand has a market capitalisation of roughly $887.05 million, with approximately 1.12 billion shares outstanding.

The post Why is the Air New Zealand share price grounded on Wednesday? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Peppermint Innovation share price is flying higher today
• The large market cap crypto you’ve probably never heard of
• Here’s why the Surefire Resources share price is firing 19% higher today
• Altamin share price explodes 46% on takeover approach
• Top broker tips 17% upside for Qantas shares following Airbus order

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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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.

Terra, with its token LUNA (CRYPTO: LUNA), has the 9th largest market cap at $30 billion. Yet, you may have never heard of it, and you wouldn’t be alone. Terra’s popularity and growth mostly come from the Asia-Pacific region of the world.

Terra is attempting to build a currency of stable coins, backed by real and digital assets. In 2022 the currency is finally hitting critical mass and activity.

Surging Activity

The number of wallet addresses on the network has been surging since the end of 2021, from about 900,000 to 3.5 million wallets. This has caused a massive uptick in the buying, selling, and spending of the currency, which increases both its value and utility.

The LUNA token may be about to go through the mass-market popularity that many alt coins enjoyed in 2021, thanks to its recent introduction to the U.S. market. Being an Asia-Pacific focused company, the U.S. has not been the primary focus. But already it has 220,000 stakers across the globe, who provide a stable network ready to handle growth.

Built to Grow

Terra already has proven utility, instead of just frothy theoretical value, as many hyped alt coins tend to do. The LUNA blockchain has proven it can handle high transaction volume and the steady number of stakers shows a stable and long-term belief in LUNA. The network has been integrated into apps as a payment platform. It has been built to be faster and cheaper to run than ETH (with 10,000 transactions per second speed compared to 20 on ETH). It has DeFi, staking, and other financial tools already running.

Terra is ready to handle the increased activity on its blockchain. Currently, it handles a 24-hour volume of about $3.1 billion. Compare that to ADA $900 Million, SOL $1.5 billion, and XRP $1.9 billion. Even with this trading volume, the chain is still processing less transactions per second than the 10,000 limit. Current estimates from Terra is 4,000-7,000 transactions per second. Terra has shown it can handle high volume, and is able to handle more.

Terra is trying to be a global currency and money mover, and is succeeding in getting there (with a long way to go still). It could become the cheapest and most efficient way to move currencies globally.

Also noteworthy: Terra recently added $3 billion in bitcoin to back their currency (with a goal of adding up to $10 billion). This is a great sign that the currency is growing and its developers are putting as much support as possible behind it.

Terra wants its stable coins to be based on the Bitcoin monetary standard and will allow Terra to build a stable coin that is actually decentralized. This is a very unique and complex way of doing stable coins which is traditionally based on a 1 to 1 relationship with a central repository.

In a traditional stable coin the cryptocurrency is backed by a traditional bank account. Where 1 token is backed by $1 real dollar in a bank account. Terra is backing its stable coin with assets on the blockchain. There is no central traditional bank holding all the value.

Terra is using crypto investments in LUNA to decentralize the assets backing up the stable coins.

2022 and Beyond

Terra has laid the groundwork to have a bright future. LUNA may be one of the best performing alt coins in 2022 and beyond. 

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

The post The large market cap crypto you’ve probably never heard of appeared first on The Motley Fool Australia.

More reading

• Here’s why the Peppermint Innovation share price is flying higher today
• Why is the Air New Zealand share price grounded on Wednesday?
• Here’s why the Surefire Resources share price is firing 19% higher today
• Altamin share price explodes 46% on takeover approach
• Top broker tips 17% upside for Qantas shares following Airbus order

Stephen Woicik owns Bitcoin, Ethereum and Cardano. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool Australia owns and has recommended Bitcoin, Ethereum and Solana. 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 Surefire Resources share price is on fire today amid an exploration update.

The explorer’s shares are currently trading at 5.2 cents, an 8% gain. However, in earlier trade Surefire shares surged 18.75% to 5.7 cents before retreating. For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) is down 0.59% at the time of writing.

Let’s take a look at what the company reported today.

Why is the Surefire Resources share price surging?

A preliminary scoping study found the company’s Victory Bore project could contain 2.263 billion pounds of vanadium pentoxide.

This project, 100% owned by Surefire, is located in Yilgarn, Western Australia. It includes the Victory Bore deposit and Unaly Hill deposit.

Test work showed three products can be extracted from the ore. This includes vanadium pentoxide flake, ferrovanadium (FeV) and magnetite concentrate suitable for ‘green’ pig iron production.

Surefire will assess the optimal production method for the best profit and shareholder returns.

Commenting on the news, the company’s managing director Vladimir Nikolaenko said:

Surefire is well positioned to have the Victory Bore Vanadium Project enter the market at a critical time in the vanadium industry.

Excellent metallurgical properties and straight forward mining and beneficiation will put the project at the low end of the cost curve.

The company said the update confirms the economic viability of the project.

Today’s news amends a release yesterday afternoon, where the company reported the deposit had just 2.263 million pounds of the compound.

Share price snapshot

The Surefire Resources share price has surged 93% in a year, while it is rocketing 333% year to date.

In the past month, Surefire shares have soared 225%, while they are up 68% in the past week alone.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

Surefire has a market capitalisation of about $59 million based on the current share price.

The post Here’s why the Surefire Resources share price is firing 19% higher today appeared first on The Motley Fool Australia.

More reading

• Altamin share price explodes 46% on takeover approach
• Top broker tips 17% upside for Qantas shares following Airbus order
• What would happen if Appen shares were removed from the ASX 200? 
• Why Alphabet stock fell 18% in April
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates

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 Altamin Ltd (ASX: AZI) share price has soared higher in trade on Wednesday following the company’s response to a takeover offer from VBS Exchange Pty Ltd.

At the time of writing, the Altamin share price had surged to 10.5 cents apiece, a 45.83% gain on the day so far.

Yesterday, the market was informed by Thomson Geer Lawyers that it was acting on behalf of VBS in its attempted buyout of Altamin.

The bidder’s statement disclosed the details of VBS’ “off-market takeover bid to acquire all the fully paid ordinary shares which it does not already own in Alamin”.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is 0.68% lower today, dragging the S&P/ASX 200 Index (ASX: XJO) 0.07 into the red at the time of writing.

Altamin recommends shareholders take no action

Following the announcement yesterday, Altiamin has pushed back and recommended its shareholders take no action.

The company said:

Altamin notes the announcement by VBS Exchange that it intends to acquire all of the fully paid ordinary shares in Altamin that it do[es] not already own or control via an off-market takeover for 9.5 cents per share, implying an offer value of approximately $37.2 million.

The VBS Takeover Offer is expected to open in mid-May and will remain open for at least a month, and there is therefore no urgency to take action at this time.

If you sell your Shares on-market you will not receive any increase in the VBS Takeover Offer price, and you will pay brokerage.

At the time of the release, VBS said it controlled a 19.73% stake in Altamin, making it the company’s largest shareholder.

However, VBS didn’t appear to have much of a shot in its attempted raid on the company, given the acquisition wasn’t solicited by Altamin.

According to the Altamin statement:

As the VBS Takeover Offer was not solicited by the Company, it will need to be considered in detail by the Board of Altamin and its advisors before a formal recommendation is made to Altamin shareholders.

Shareholders should wait until they receive and consider the Target’s Statement before deciding whether to accept or reject the VBS Takeover Offer.

In the meantime, VBS says it has appointed Canaccord Genuity in Australia to continue purchasing Altamin shares “on-market at the price offered under its bid until the end of the offer period”.

The Altamin share price is around 4% in the red over the last year of trade, however, has shot 47% higher in 2022.

The post Altamin share price explodes 46% on takeover approach appeared first on The Motley Fool Australia.

More reading

• Top broker tips 17% upside for Qantas shares following Airbus order
• What would happen if Appen shares were removed from the ASX 200? 
• Why Alphabet stock fell 18% in April
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates
• What’s the outlook for the CBA share price 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.

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The Qantas Airways Limited (ASX: QAN) share price has lifted nearly 5% this week following the company’s update on its pandemic recovery.

Additionally, the iconic airline announced it has ordered 12 new Airbus A350s. The new aircraft will be ready for take-off from Sydney in 2025.

On the back of the news, broker Jefferies upgraded its price target for the Qantas share price. It’s predicting the stock has 17% upside, according to Reuters.

At the time of writing, the Qantas share price is $5.81, 0.17% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has also spent Wednesday morning in the green, having gained 0.27%.

Let’s take a closer look at why the broker thinks the ‘flying kangaroo’ is facing a green future.

Could the Qantas share price reach $6.81?

Jefferies is expecting big things from the Qantas share price after the airline announced it could return to profitability next financial year.

It’s also more bullish on the stock following news the airline is bolstering its international fleet with the intention to fly non-stop from Sydney to London and New York from 2025.

Finally, Qantas’ expectation of further growth in both its earnings and demand has boosted the broker’s confidence.  

The airline believes its domestic capacity will be 105% of its pre-pandemic levels in the quarter ending 30 June and around 110% of pre-pandemic levels in the quarter ending 30 September.

Meanwhile, it’s predicting its international capacity will be bolstered to just under 50% of pre-pandemic levels this quarter. That’s expected to rise to 70% in the first quarter of next financial year.

Jefferies also believes the airline’s two concurrent projects – Winton and Sunrise – will cement its solid market position.

Winton aims to renew Qantas’ domestic fleet. The airline has ordered 40 aircraft under the project. The first of the planes are set to arrive next year.

Meanwhile, Sunrise is working to see non-stop flights operate from Sydney to London.

Jefferies is reportedly gearing up for Qantas to report a net loss of $1.28 billion for financial year 2022.

That’s down from its previous estimate of $1.49 billion and last financial year’s $2.28 billion pre-tax loss.

Additionally, it expects Qantas to report a net profit of $703.3 million for financial year 2023 – up from its previous expectation of a $688.8 million profit.

As a result, the broker has slapped the Qantas share price with a price target of $6.81 and a buy rating.

The post Top broker tips 17% upside for Qantas shares following Airbus order appeared first on The Motley Fool Australia.

More reading

• Why is the Webjet share price beating the ASX 200 today?
• Why Alkane, Chalice Mining, PointsBet, and Qantas shares are rising today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• ASX 200 midday update: NAB’s AUSTRAC update, AGL downgrades guidance, Qantas takes off
• Qantas share price lifts off on projected return to profitability

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

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Oh, dear. It’s turning into another poor day for the Appen Ltd (ASX: APX) share price so far this Wednesday. At the time of writing, Appen shares have fallen by a nasty 4.06% to $6.38 each. And that’s with the S&P/ASX 200 Index (ASX: XJO) recording a modest gain of 0.07% so far today.

This latest move puts Appen closer to its 52-week low of $6.08 a share. It also puts the human annotated dataset company at a 42.7% loss for 2022 so far. Not to mention down more than 57% over the past 12 months. It’s unclear why Appen shares are falling today. There has been no fresh news out of the company so far in May. The only clue we have is that most other ASX tech shares are also having a pretty disappointing day this Wednesday.

But what is clear is that, with Appen’s recent and steep falls, the company is in danger of being kicked out of the ASX 200 Index. See, the ASX 200 is the flagship index of the Australian share market, But it only measures the performance of the largest 200 shares on the index by market capitalisation. And Appen’s recent falls have resulted in the company’s market cap shrinking to under $800 million as of today’s pricing.

That puts Appen at the bottom end of the ASX 200. And below shares like Coronado Global Resources Inc (ASX: CRN), which is currently outside the ASX 200. To put things in perspective, Coronado now has a market cap of over $4 billion. That’s more than quadruple that of Appen.

What happens if the Appen share price gets kicked out of the ASX 200?

The ASX 200 is rebalanced every three months to make sure it is an accurate representation of the share market. Its next rebalancing takes place next month. So unless Appen shares rocket higher over the next month or so, the company could well be booted out of the ASX 200.

But what would this actually mean?

Well, it theoretically wouldn’t have any impact on Appen’s business itself. But it could have an impact on Appen’s pricing and how the shares are valued by the market.

For one, there are many ASX fund managers that have a mandate for ASX 200 shares. That means that they can only select shares that are in the ASX 200 Index. If Appen falls out of the ASX 200, any fund manager that has such a mandate will be forced to sell their Appen position.

Further, many of the most popular ASX exchange-traded funds (ETFs) on our share market are ASX 200 index funds. One such example is the iShares Core S&P/ASX 200 ETF (ASX: IOZ). An ASX 200 index fund has to blindly mirror the ASX 200 index itself. Thus, if Appen leaves the ASX 200, any index fund that tracks the ASX 200 will have to ditch its Appen positions too.

So you can see that if Appen is kicked out of the ASX 200, it could result in some significant selling pressure on the shares. Thus, shareholders are probably hoping that the Appen share price keeps its spot in the ASX 200 next month. But we shall have to wait and see.

The post What would happen if Appen shares were removed from the ASX 200?  appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates
• Is the Wesfarmers share price a buy or a sell in May?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• Here’s why the Metcash share price just hit a 15-year high

Motley Fool contributor Sebastian Bowen 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

Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) were getting roughed up last month as the search giant turned in a disappointing first-quarter earnings report and fell alongside the broader tech sector as market sentiment continued to move away from tech stocks. According to data from S&P Global Market Intelligence, the stock finished the month down 18%.

As you can see from the chart below, it was a steady decline for the Google owner over most of April, and the company’s descent tracked with the Nasdaq index.

GOOGL data by YCharts.

So what

Growth stocks and tech stocks pulled back last month over concerns about rising interest rates, inflation, a potential recession, and the war in Ukraine. Investors also seemed to be adjusting to the end of COVID-19 tailwinds that had favored tech stocks. Although digital advertising, which is Alphabet’s main business, is more sensitive to the general business cycle.

The main news out on the stock last month was its Q1 earnings report. It was a solid quarter as revenue increased 23% to $68 billion, matching estimates, but earnings per share (EPS) actually fell from $26.29 to $24.62 as the value of some of its investments declined. That result missed expectations at $25.96.

However, operating income increased 23% to $20.1 billion showing that the underlying profitability of the business remains strong. Growth in search, its core business, was solid, but investors were concerned about a slowdown in YouTube, where revenue rose 14% as some of the pandemic tailwinds faded and the war in Ukraine weighed on the business in Europe. Elsewhere, Google Cloud showed off strong growth but still lost nearly $1 billion on close to $6 billion in revenue.

The stock fell nearly 4% on April 27 after the report came out but recovered those losses the next day as tech stocks soared.

Now what

A number of investors have taken notice of Alphabet’s valuation in the wake of the earnings report as the stock is as cheap as it’s been in several years, trading for a price-to-earnings (P/E) ratio of just 21, cheaper than slow-growth stalwarts like Coca-Cola or Procter & Gamble.

The reason for that may be more about the broader economy than Alphabet itself, as investors seem to be fearful of a recession especially after US GDP shrunk 1.4% in the first quarter. Spending on advertising is closely correlated with the overall health of the economy and in a recession, Alphabet would likely see a significant slowdown in growth.

However, there’s little doubt that it would emerge from a downturn unscathed. Given that, the current price tag and the company’s growth rate make it look like a bargain.

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

The post Why Alphabet stock fell 18% in April appeared first on The Motley Fool Australia.

More reading

• Alphabet stock fell following Q1 report. Is it a buy?
• Why Alphabet stock slumped on Wednesday
• Have ASX tech shares finally reached the bottom?
• Should you buy Alphabet before the stock split?
• Shopify, Alphabet, Amazon, and Tesla stocks are splitting — which ones are the best buys?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jeremy Bowman 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 Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has given back the majority of its morning gains and is just a fraction higher. The benchmark index is currently trading at 7,316.8 points.

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

ANZ half year results

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is pushing higher today after the market responded positively to the bank’s half year results. ANZ reported a 4% increase in cash earnings from continuing operations to $3,113 million. This compares to Goldman Sachs’ estimate of $2,971 million for the half. The bank also declared a fully franked interim dividend of 72 cents per share for the period.

JB Hi-Fi shares fall on sales update

The JB Hi-Fi Limited (ASX: JBH) share price is falling on Wednesday despite the retailer revealing strong sales growth during the third quarter. While all of its businesses delivered sales growth, the star of the show was the key JB Hi-Fi Australia business. It reported total sales growth of 11.9% year on year during the quarter. Investors were either expecting stronger growth or were disappointed that there was no commentary on margins or earnings.

Flight Centre shares tumble

The Flight Centre Travel Group Ltd (ASX: FLT) share price is tumbling on Wednesday. This follows the release of an update ahead of the travel agent’s appearance at an investor conference. Flight Centre revealed that despite recent improvements, it still expects to post a full year underlying EBITDA loss in the range of $195 million to $225 million in FY 2022.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Hub24 Ltd (ASX: HUB) share price with a 4% gain. This is despite there being no news out of the investment platform provider. Going the other way, the Imugene Limited (ASX: IMU) share price has continued its slide and is down a further 11%. Investors have been selling this biotech’s shares since it announced the termination of a supply agreement with Merck.

The post ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 bank shares are in the spotlight
• Flight Centre share price slips despite return to profitability
• JB Hi-Fi share price falls despite strong Q3 sales growth
• Is the Wesfarmers share price a buy or a sell in May?
• ANZ share price on watch amid $3.1bn half-year cash profit

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 Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Commonwealth Bank of Australia (ASX: CBA) share price is in focus this month as investors get to grips with the latest changes for the banking environment.

Yesterday, the Reserve Bank of Australia (RBA) announced that it increased the Australian interest rate by 25 basis points to 0.35%.

CBA responded quickly by being the first big four ASX bank to pass on the full rate hike to variable loan borrowers. Time will tell what happens with savings accounts and term deposit interest rates.

CBA group executive of retail banking Angus Sullivan said:

This is an important time to support customers as some may not have experienced an interest rate increase since they took out their loans.

We are here to help customers who have loans and are considering how repayments might change. Some options available to help our customers manage repayments include fixing or splitting loans or setting up an offset account.

CBA said the new home loan variable interest rates will take effect on 20 May 2022.

What could happen next for the CBA share price?

No one can know what a share price is going to do any week, month, or even year.

While the CBA share price has moved up and down a bit in 2022, it’s currently almost flat for the calendar year to date.

The broker Morgans is certainly not confident about the CBA share price rising, or even staying where it is.

Morgans currently has a price target of $77 on the biggest ASX bank. That implies a possible decline of around 25% over the next year.

There are a few different things that the broker is taking into account. It does note that the net interest margin (NIM) is expected to increase as interest rates rise. However, higher interest rates could mean more arrears/bad debts for borrowers.

It’s possible that deposit balances may decline and investors may not find ASX dividend shares as attractive for income.

Out of the big four ASX banking options of CBA, National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and Westpac Banking Corp (ASX: WBC), it’s NAB which is the broker’s pick.

There are other brokers that are also negative on the biggest bank. Citi rates CBA as a sell with a price target of $90.75. Macquarie rates CBA as ‘underperform’ with a price target of $90.

CBA share price valuation

The different brokers have different estimates of the bank’s outlook.

Morgans put CBA at 19 times FY22’s estimated earnings.

Macquarie thinks that CBA’s valuation is 20 times FY22’s estimated earnings.

Citi thinks that the CBA share price is valued at under 20 times FY22’s estimated earnings.

All three brokers are expecting the CBA dividend to increase.

The biggest dividend yield projection is from Citi. It’s expecting CBA to have a grossed-up dividend yield of 5.3% in FY22 and 6.4% in FY23.

The post What’s the outlook for the CBA share price in May? appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 bank shares are in the spotlight
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• The CBA share price was the worst performer of the ASX 200 big banks in April. What happened?
• Can ASX 200 banks live up to the $11 billion ‘big expectation’ when they report this month?
• Top brokers name 3 ASX shares to sell next week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and 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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Shares in Seven West Media Ltd (ASX: SWM) are tracking lower today and now trade around 2% down at 64.25 cents apiece.

The Seven West share price is on the move today amid the release of its investor presentation and trading update, presented at the Macquarie Australia Conference.

Seven West updates guidance

In its presentation Seven West mentioned that it is on track to report FY22 EBITDA from its 7Digital segment to $130 million, based on internal guidance.

As such, it also updated full group projections “from the previous guidance of between $315 million and $325 million to between $335 million and $340 million.”

Seven West CEO, James Warburton, noted the reasons for such a change:

The recent acquisition of Prime Media Group, coupled with the winning performance of the Seven broadcast television business and the strong growth of 7plus, make SWM the undisputed leader in the national total television market – a position that we plan to build on in the future.

The company also quoted Bloomberg consensus figures that show analysts expect it to report underlying net profit after tax (NPAT) $178 million in FY22.

“The earnings upgrade reflects the strength of advertising markets and the ongoing success of Seven’s broadcast and digital businesses,” Warburton added.

Further to updating guidance, the group also recovered its FY21 revenue of $1.27 billion and group EBITDA of $254 million.

The bolus of both revenue and earnings came from its TV Broadcast segment, precisely where Seven West sees continued growth into the coming years.

Seven West Media share price snapshot

In the last 12 months the Seven West share price has held onto a 35% gain, however has struggled this year to date. Since trading resumed in January, it has slipped less than 1% into the red.

That’s after soaring to a new 52-week high of 80 cents back in February.

The post What’s with the Seven West Media share price 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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