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Looking for dividends shares for you income portfolio? If you are, you may want to check out the two listed below.

Here’s what you need to know about these ASX dividend shares:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that could be in the buy zone is Baby Bunting. It is the leading baby products retailer with a strong (and growing) presence through its national superstores and online business.

Citi is a fan of the company and has a buy rating and $6.22 price target on its shares. The broker highlights that the retailer has a strong position in a less discretionary category. It expects this to support strong growth in the coming years.

Citi explained: “We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. While the FY22 PE multiple of 24x (or 29x when adjusted for transformation costs) is not cheap, we forecast a FY21 to FY24 EPS CAGR of 17%.”

In respect to dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.59, this will mean yields of 3.5% and 4.1%, respectively.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is Harvey Norman. It is of course one of Australia’s largest retailers with stores across the country and internationally.

The team at Goldman Sachs is very positive on the retail giant and has a buy rating and $5.80 price target on its shares.

Goldman highlights that Harvey Norman “has a greater preference within the boomer generation and a higher exposure to regional Australia.” The broker believes this shields it from online disruption.

As for dividends, the broker is forecasting fully franked dividends of 43.3 cents per share in FY 2022 and 39.6 cents per share in FY 2023. Based on the current Harvey Norman share price of $5.04, this will mean yields of 8.6% and 7.9%, respectively.

The post Here are 2 top ASX dividend shares analysts are tipping as buys appeared first on The Motley Fool Australia.

More reading

• Here are the ASX retail share winners and losers of the last quarter
• Brokers name 2 ASX dividend shares to buy
• Buy these ASX shares with huge upside: experts
• Brokers name 2 ASX 200 dividend shares to buy now
• 2 ASX dividend shares analysts have named as buys

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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and on course to record a strong gain. At the time of writing, the benchmark index is up 1.1% to 7,342.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Cettire Ltd (ASX: CTT)

The Cettire share price is down 7% to 68.5 cents. Investors have been selling this online luxury goods retailer’s shares following the release of its quarterly update. Although Cettire reported strong growth in its gross revenue, there were a few metrics that appear to have spooked investors. For example, conversion rates and average order size both fell year on year and compared to the average during the first two quarters of FY 2022.

Newcrest Mining Ltd (ASX: PLS)

The Newcrest share price is down 2% to $26.50. This follows the release of the gold miner’s quarterly update. That update revealed a 10% increase in gold production to 480,000 ounces. And with an all-in sustaining cost (AISC) of $1,008 per ounce, Newcrest enjoyed an AISC margin of $809 per ounce. This appears to have been overshadowed by a pullback in the gold price overnight.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price has slumped 6% to $1.88. This morning the gold miner released its quarterly update and reported production of 53,822 ounces of gold. While this left it positioned to meet its FY 2022 production guidance, management warned that COVID-19 related labour shortages could disrupt its operations. As a result, it is withdrawing its guidance.

Whispir Ltd (ASX: WSP)

The Whispir share price has sunk over 15% to $1.24. Yesterday this communications workflow platform provider avoided the tech selloff after investors responded positively to the release of its quarterly update. That positivity has faded very quickly, with a broker note out of Wilsons potentially to blame. This morning its analysts slashed their price target by 22% to $3.05. Though, this is still meaningfully higher than current levels.

The post Why Cettire, Newcrest, Silver Lake, and Whispir shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Why AMP, Fortescue, Pilbara Minerals, and Sandfire shares are racing higher
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Pilbara Minerals share price climbs as lithium prices surge
• Cettire share price surges higher as revenue rockets 178%
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 Cettire Limited and Whispir Ltd. The Motley Fool Australia has recommended Cettire Limited and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woodside Petroleum Limited (ASX: WPL) share price is currently down 0.2% to $30.89. Today, it has been as high as $31.59 and as low as $30.67. That’s a swing of almost 3% in just five hours of trading.

Other oil and gas producers, like Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT), have seen a similar pattern with their share prices – they were higher earlier today and then those gains faded.

During this week, Woodside released its quarterly update for the three months to 31 March 2022.

First-quarter update

Woodside said that its delivered production was 22.3 million barrels of oil equivalent (MMboe) for the quarter. This was down 1% from the fourth quarter of 2021.

Its sales volume was 25.5 MMboe, which included a 2% increase in the produced LNG sales volume from the 2021 fourth quarter.

The average realised price increased to $93 per barrel of oil equivalent. This was an increase of 3% from the 2021 fourth quarter.

While the price per barrel increased, the sales revenue of $2.36 billion was down 17% from the fourth quarter of 2021 due to lower trading activity.

Highlights included the commencement of processing Pluto gas at the Karratha Gas Plant. This followed the start-up of the Pluto-KGP interconnector pipeline.

Outlook for Woodside and its share price

Woodside said that it’s expecting to see the continued benefits of stronger pricing in the second quarter, reflecting the oil price lag in many of its LNG contracts.

The ASX oil share pointed to the implications of Russia’s invasion of Ukraine which exacerbated the energy markets, which were already “tight”, particularly for LNG. It has driven prices higher.

Woodside continues to make progress toward the merger with the BHP Group Ltd (ASX: BHP) petroleum business. Why are they merging? Woodside CEO Meg O’Neill explains:

We believe the case for the proposed merger with BHP Petroleum is compelling. It will bring together the best of two successful organisations and deliver the increased scale, diversity and resilience to provide value to shareholders and ensure Woodside better navigates the energy transition.

The company points to progress with a number of its other projects. This includes Scarborough where the manufacture of the pipeline has started. It has signed binding agreements for the long-term charter of three new-build LNG carriers to be delivered before the start-up of Scarborough. These new vessels “will improve the cost-competitiveness and fuel efficiency of the Woodside fleet”.

Is the Woodside share price an opportunity?

The broker Morgans thinks that Woodside is a buy, with a price target of $33.60. That implies a potential rise of around 10% over the next year.

However, UBS is only neutral with a price target of $32.20, suggesting a smaller potential rise for the Woodside share price. UBS has decreased its production expectations for the next couple of years.

The post Why is the Woodside share price in the spotlight on Thursday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• How might the election outcome impact the outlook for ASX energy shares?
• Here’s why the Woodside share price is beating the ASX 200 today
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Own ASX 200 energy shares? Here’s why Morgan Stanley says the oil price is set to surge

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 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 Bruce Jackson.

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The Xero Limited (ASX: XRO) share price has dropped 35% since the start of 2022. The ASX tech share is seen as an opportunity, according to some experts.

It has been a volatile period for the ASX share market. There is elevated inflation around the world, which is why expectations for rising interest rates are increasing.

That may explain some of the market sentiment on the Xero share price in recent times. But after the decline, some experts believe that the cloud accounting business is worth buying.

Here are some of the factors that are favourable about the company.

High-profit margin with growing SaaS metrics

It is possible for technology companies to achieve relatively high-profit margins because of the intangible nature of what they offer customers. Software can be reproduced easily and cheaply. Furniture, phones, or other physical goods have to be manufactured and shipped.

Xero reported in its FY22 half-year result that its gross profit margin improved by another 1.4% to 87.1%. This means that a large majority of new income for Xero can turn into gross profit. Xero is utilising this money to invest in further growth.

The company said it’s seeing “strength” with a number of its software as a service (SaaS) metrics. Over HY22, its average revenue per user (ARPU) increased by 5% to NZ$31.32.

Xero also said that its subscriber ‘churn’ was low and went lower. HY22 churn was 0.88%, down from 1.11% in HY21.

Global growth for Xero

The ASX tech share started operations in New Zealand but it is now a global accounting software business.

In Australia and New Zealand, it reached 1.72 million subscribers – that was an increase of 20% year on year, with 22% growth in Australia to 1.24 million. Xero said this points to the “positive potential of international segment.”

The business is growing quickly outside of Australia/New Zealand.

In the UK, it grew subscribers by 23% to 785,000 in HY22. It’s looking to grow by expanding its compliance and tax offerings. In North America, subscribers rose 23% to 308,000. Xero is looking to grow in both the US and Canada.

Xero is also aiming to gain a significant presence in the ‘rest of the world’ segment. HY22 saw subscribers grow by 48% to 201,000. The ASX tech share is making “strong progress” in South Africa and Singapore.

Platform business model

Xero wants to build its small business platform. Indeed, CEO Steve Vamos said:

We are committed to delivering the world’s most insightful and trusted small business platform to make life better for people in small business, their advisors and communities around the world.

The company is seeing growth in the number of Planday users and employees being paid through Xero payroll. The total payment value is also increasing on Xero’s platform.

Xero is directing the cash flow it generates to grow its platform to “drive long-term shareholder value”.

The percentage of revenue that comes from its platform, rather than core accounting, is growing. In HY22, platform revenue was 11% of the total revenue, up from 6%. Platform revenue increased 104% year on year, or 37% excluding revenue from acquired businesses.

Xero share price targets

Ord Minnett rates Xero as a buy, with a price target of $107. The broker thinks Xero can benefit from global tailwinds toward cloud software. Citi also rates Xero shares as a buy, with a price target of $132.60.

At the time of writing, Xero shares are swapping hands for $93.68, down 0.92% for the day. The Xero share price has dived 36% year to date and 32% over the past 12 months. Its 52-week high is $156.65.

The post Why the Xero share price is a buy right now: experts appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares to buy for dirt cheap right now: experts
• 2 ASX 200 blue chip shares to buy in May: Analysts
• Top brokers name 3 ASX shares to buy next week
• Broker tips Xero share price to rise 30% due to ‘compelling global growth story’
• 2 top ASX growth shares leading brokers say ‘buy’

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is rebounding from recent weakness. At the time of writing, the benchmark index is up 1.1% to 7,340.2 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

AMP Ltd (ASX: AMP)

The AMP share price is up 15% to $1.18. Investors have been buying this financial services company’s shares after it announced an agreement to sell its international infrastructure equity business to DigitalBridge. The two parties have agreed an upfront consideration of A$462 million and a total value of up to A$699 million. This follows recent agreements to sell its domestic infrastructure equity and real estate business and its infrastructure debt platform. AMP intends to return the majority of the proceeds to shareholders.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is up 6.5% to $21.43. This morning the mining giant released its third quarter update which revealed iron ore shipments up 10% year on year to 46.5 million tonnes (mt). This means Fortescue’s shipments reached a record of 139.5mt for the first three quarters of the financial year. This led to management upgrading its shipments guidance for FY 2022.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 2% to $2.65. Earlier today the lithium miner released its quarterly update and revealed production of 81,431 dry metric tonnes (dmt) of spodumene concentrate. While this was down 2% quarter on quarter, management has retained its FY 2022 production guidance of 340,000–380,000 dmt. It also reported another increase in lithium prices for the quarter.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire share price is up 11% to $5.77. Investors have been buying this copper producer’s shares following the release of its quarterly update. That update revealed strong production, sales, and earnings thanks largely to the transformational acquisition of MATSA.

The post Why AMP, Fortescue, Pilbara Minerals, and Sandfire shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Why is the Rio Tinto share price rebounding strongly on Thursday?
• Sandfire share price shoots 12% higher on ‘transformational’ quarter
• AMP share price surges 11% as $699m Collimate deal confirmed
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Pilbara Minerals share price climbs as lithium prices surge

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 Bruce Jackson.

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The Mineral Resources Limited (ASX: MIN) share price is storming higher today.

This comes after the mining services company announced an update to its unsecured senior notes offer.

At the time of writing, the Mineral Resources share price is up 4.79% to $58.15.

Mineral Resources bolsters its notes offer

According to its release, Mineral Resources advised the pricing and upsizing of its US$1.25 billion unsecured notes offer.

As previously stated, the notes will be offered across two tranches to persons believed to be qualified institutional buyers.

It appears investors are viewing the release as a positive one, sending the Mineral Resources share price higher.

The first offer comprises US$625 million senior unsecured notes priced at 8% per annum, maturing in 2027. The interest is payable on 1 May and 1 November each year, commencing in November 2022.

The second tranche of US$625 million senior unsecured notes will be priced at 8.5% per annum, expiring in 2030. These will also have the same payable interest dates as above, commencing in November 2022.

Originally, the proposed notes offering was placed at US$1 billion.

Mineral Resources stated that it intends to use the cash proceeds for general corporate purposes, including capital expenditures.

The settlement of the offering of the notes is expected to occur on 2 May 2022, subject to customary closing conditions.

Mineral Resources share price snapshot

Despite being down 5% for the week, Mineral Resources shares have gained almost 20% since this time last month.

When looking further back, its shares are up 26% over the past 12 months.

On valuation grounds, Mineral Resources presides a market capitalisation of roughly $11 billion, with approximately 189.2 million shares outstanding.

The post Here’s why the Mineral Resources share price is leaping 5% appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 mining shares defying today’s sell-off to surge higher
• 5 things to watch on the ASX 200 on Wednesday
• Why Chalice Mining, EML Payments, Mineral Resources, and South32 shares are tumbling
• Why is the Mineral Resources share price sinking 9% today?
• 5 things to watch on the ASX 200 on Tuesday

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 Bruce Jackson.

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It’s been a very pleasing day on the whole for the S&P/ASX 200 Index (ASX: XJO). After some heavy losses earlier in the week, the ASX 200 is rebounding strongly today, up 0.95% at the time of writing to around 7,330 points. But it’s been an even better day for the Rio Tinto Limited (ASX: RIO) share price. Rio shares are currently up a healthy 2.34% at $111.51 each. That comes after some steep selling earlier this week.

So why are Rio shares surging higher today?

Well, we can’t be completely certain. The company hasn’t released any news itself today. However, looking at the market, we can take a guess. The materials and metals and mining indexes on the ASX 200 are the top two performing sectors so far today. So Rio is certainly not alone in its gains. Its peers like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are also surging, both up even more than Rio. Fortescue’s shares have risen an eye-popping 5.82%.

Rio share price rises amid higher iron ore price, falling dollar

These moves come as the iron ore price sees a rebound. According to Trading Economics, iron ore rallied overnight to US$137 a tonne. The Aussie dollar has also fallen in recent days. It’s now at just over 71 US cents, down from over 72 earlier n the week. A falling dollar makes exports from Australia cheaper to buy for foreign buyers, which is good news for miners like Rio.

So a rising iron ore price, and a falling Aussie dollar is the likely reason why iron ore miners like Rio, BHP and Fortescue are rallying today. This is no doubt coming as a relief for Rio investors, who had to watch the company lose around 4% of its value over Tuesday and Wednesday’s trading.

At the current Rio Tinto share price, this ASX 200 mining giant has a market capitalisation of $40.44 billion, with a trailing dividend yield of 9.75%.

The post Why is the Rio Tinto share price rebounding strongly on Thursday? appeared first on The Motley Fool Australia.

More reading

• Despite the global uncertainty, here’s why Macquarie remains bullish on ASX shares
• Why is the Woolworths share price missing out on the ASX party today?
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Down over 10% in 10 days: Is the BHP share price a bargain buy now?
• Fortescue share price charges higher on Q3 update and shipments guidance upgrade

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 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 Bruce Jackson.

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Markets are lifting in afternoon trade on Thursday with the benchmark S&P/ASX 200 index (ASX: XJO) resting 105 basis point up at 7,337.

The big end of town is joined by Australian small caps today as well with the S&P/ASX Small Ordinaries index (XSO) also up by 74 basis points.

Meanwhile, theS&P/ASX 300 Metals and Mining index (XMM) that’s leading today with a circa. 3% gain, just ahead of the S&P/ASX 200 Materials index (XMJ) and ASX 200 resources index (XJR).

The distribution of these returns’ feeds into why one broker is bullish on ASX shares rolling through 2022 and beyond.

Why is Macquarie bullish on ASX shares?

After reviewing the current state of affairs, investment bank Macquarie Group Ltd (ASX: MQG) has urged its clients to tilt their portfolios towards domestic shares, particularly amid tensions in Europe.

It also recommends to concentrate in resources stocks over industrials in preference, considering the macroeconomic climate that’s driving up commodity prices.

Altough, with commodity indices racing to multi-year highs in 2022, it mightn’t come as a surprise. Brent Crude oil has surged 52% in the past 12 months whereas gold is still up 6% despite a sharp pullback recently.

Meanwhile, commodity-popstar lithium has still booked a 434% gain during the last year, and energy markets including coal and natural gas have secured triple-digit returns as well.

And let’s not overlook agricultural and food-based commodities. Except for lumber, the entire ‘ag-com’ basket is trading well into the green.

Most recently that’s been spurred on by Indonesia’s decision to scale back RBD palm oil exports.

“The world’s top producer [Indonesia] announced such a move in further effort to stabilise domestic prices, and authorities will assess local supply regularly,” as calculated by Trading Economics.

There’s talk such a move could add further pressure on agricultural commodities.

However, there’s two sides to every trade. And as commodity prices surge, there’s sure to be a long list of winners in 2022, Macquarie says.

Macquarie equity strategist Matthew Brooks said that “[e]asing lockdowns and more China stimulus should support commodities,” in a note, cited by The Australian.

Fed tightening remains a headwind for growth and valuations, and we still think this headwind will be greater for Industrials than Resources.

We still think the war in Eastern Europe is positive for Australia and continue to see inbound interest in ASX stocks from global investors.

The strategist’s outlook aligns with the current macro-thematic it seems, as ASX shares continue to shrug off pressures seen in European and US markets so far in 2022.

The post Despite the global uncertainty, here’s why Macquarie remains bullish on ASX shares appeared first on The Motley Fool Australia.

More reading

• Why is the Woolworths share price missing out on the ASX party today?
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• ‘No risk, no reward’: Exit ASX shares if you can’t stomach volatility, says experts
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today

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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Telstra Corporation Ltd (ASX: TLS) shares are down 0.25% on Thursday afternoon after it was revealed to have paid $2.2 million in refunds and penalties.

The sell-off in the morning saw the stock price plunge as much as 0.5% as investors digested the news that the telco had overcharged customers.

The Telstra share price is now down more than 2% over the past week, and 5.8% for the year so far.

The Australian Communications and Media Authority (ACMA) announced before market open on Thursday that the company had paid a $506,160 penalty and more than $1.73 million in refunds after it was busted.

“At a time when Australians are being very careful with their budgets, these errors are particularly concerning as they could have caused considerable strain and distress,” said ACMA chair Nerida O’Loughlin.

“Telecommunications is an essential service for Australian households and businesses, and there are no excuses for overcharging customers.”

Charging customer after they departed

More than 8,000 of the roughly 11,600 impacted customers had been with Telstra’s budget brand Belong.

They were collectively charged more than $1.2 million for broadband after they had switched to another provider.

The problem was particularly concerning as Telstra had already been busted for the same offence in 2020.

“Telstra had already been formally directed by the ACMA to comply with billing rules so should have moved to address these issues and not inconvenienced its customers further.”

The Motley Fool has contacted Telstra for comment.

The errors, which occurred between July 2018 and October 2021, were self-reported by the company. The report triggered ACMA investigations, but the firm independently committed to refunding the overcharges.

According to ACMA, Telstra blamed the mistakes on data transfer issues between its customer relationship management system and its billing system, plus manual processing errors and obsolete instructions for staff.

The excuses didn’t really cut it for O’Loughlin.

“Telstra is the largest telecommunications company in Australia. I would expect its billing systems to be more sophisticated and compliant with industry-wide consumer protection rules.”

Telstra buys set-top box provider

During the day, Telstra announced that it had bought a 51% stake in streaming box provider Fetch.

The $50 million investment values Fetch at around $100 million, with current owner Astro Holdings retaining 49% of the business.

Until now, Telstra had provided streaming boxes branded Telstra TV that were made by US company Roku Inc (NASDAQ: ROKU).

Telstra TV currently had about 800,000 active subscribers, and Fetch has about 670,000 through other partners such as Optus and TPG Telecom Ltd (ASX: TPG).

The deal is subject to regulatory approval.

The post What’s dragging the Telstra share price lower today? appeared first on The Motley Fool Australia.

More reading

• Down 5% in 2022, is the Telstra share price a buy today?
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Can Telstra shares deliver an attractive dividend yield AND 13% upside in 2022?
• Analysts name 2 top ASX 200 dividend shares to buy
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is pushing higher on Thursday.

In afternoon trade, the banking giant’s shares are up 0.5% to $27.04.

This means the ANZ share price is now up 9% in the space of approximately seven weeks.

Where next for the ANZ share price?

Unfortunately for shareholders, one leading broker feels the ANZ share price may have peaked for the time being.

According to a note out of Morgans, its analysts have downgraded the bank’s shares to a hold rating and cut the price target on them to $26.00. This implies potential downside of 3.8% for the ANZ share price from current levels.

In addition, Morgans has downgraded Westpac Banking Corp (ASX: WBC) shares to a hold rating and slashed its price target down to $23.90. This compares to the current Westpac share price of $23.57.

Why did the broker make the move?

The note reveals that Morgans made the move amid concerns over near-term factors.

In respect to ANZ, the broker explained:

“Whilst ANZ’s Institutional business provides it with potentially strong leverage to rising rates, ANZ’s Australian home lending continues to disappoint in terms of growth. Moreover, it appears the limited growth ANZ is achieving is being driven by less complex, low-margin home loans. We consequently see risk of ANZ disappointing in the near term by way of loan growth and margin performance.”

As for Westpac, its analysts said:

“It has been disappointing to see that WBC’s Australian investor home loan book has continued to shrink post FY21 according to APRA statistics. We believe this contraction is being partially driven by WBC’s business bankers being focused on remediation issues; we had hoped these issues would be resolved by now. We suspect the remediation issues are also hampering WBC’s Australian business loan growth.”

“This is of particular concern in the near term as investor and business lending are two relatively high-margin areas of lending. We expect WBC’s share price to broadly track sideways until these issues are resolved.”

The post Top broker downgrades ANZ and Westpac shares appeared first on The Motley Fool Australia.

More reading

• Is the Westpac share price expensive in April?
• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• Own ANZ shares? Here’s what this top broker finds ‘particularly concerning’
• What predictions are being made for the ANZ share price in April?
• Own Westpac shares? Here’s why the bank has just copped a further $100m in fines

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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