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ASX energy shares received plenty of attention over the quarter just past.

And for good reason.

Energy prices, as we’re sure you’re aware, have gone through the roof.

The trend commenced last year, with energy demand ramping up as the world reopened from COVID closures.

Then, with new energy supplies already struggling to keep up with increasing demand, Russia’s invasion of Ukraine put a rocket under the likes of coal, oil and gas.

Crude oil hit 13-year highs over the quarter and coal traded at all-time highs.

Those soaring prices weren’t lost on investors running their slide rules over ASX energy shares. This saw the S&P/ASX 200 Energy Index (ASX: XEJ) gain a whopping 25.1% in Q1, trouncing the 0.7% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same period.

Of course, some ASX energy shares did better than others.

Below we look at the top three performers, who also topped the Q1 leader’s board on the All Ordinaries Index (ASX: XAO).

We’ll let you pick out what they all have in common.

The second and third best ASX energy shares in Q1

Coming in at number three, Coronado Global Resources Inc (ASX: CRN) produces metallurgical coal, which is used to produce steel rather than fuel power plants. The company has a market cap of $3.8 billion and doesn’t pay a dividend.

With coal prices hitting all-time highs, the ASX energy share leapt 61% in Q1, closing on 31 March at $2 per share. Coronado is currently trading at $2.25 per share.

Moving on to the second best ASX energy share to have held throughout the March quarter we have Yancoal Australia Ltd (ASX: YAL).

Yancoal is Australia’s largest pure-play coal producer, operating and managing coal mines across the country. The company has a market cap of $6.7 billion and pays a 10.4% trailing dividend yield, unfranked.

Also benefitting from rocketing coal prices, Yancoal shares surged 71% in Q1, closing on 31 March at $4.44 per share. Today the Yancoal share price stands at $5.34.

Topping the list

The best performing ASX energy share, and also topping the list of All Ords performers for Q1, was Stanmore Resources Ltd (ASX: SMR), formerly Stanmore Coal. (See the common thread?)

Stanmore has a market cap of $1.6 billion and pays a fully franked 4.3% dividend yield.

Riding the wave of soaring coal prices, the ASX energy share closed the March quarter up 83%, at $1.74. At time of writing, the Stanmore share price stands at $1.86.

The post These were the top 3 ASX energy shares of the March quarter appeared first on The Motley Fool Australia.

More reading

• Maximise ASX share gains or invest ethically? The SUPER dilemma
• Guess which 2 ASX shares were the best and worst All Ordinaries performers of the quarter
• ASX mining shares were the leaders last quarter. Here are the top performers
• The best ASX All Ordinaries shares of the March quarter unmasked
• Why ASX coal shares are charging higher again today

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 Bank of Queensland Limited (ASX: BOQ) share price has come under significant pressure on Thursday.

In afternoon trade, the regional bank’s shares are down almost 6% to $8.04.

Why is the Bank of Queensland share price sinking?

Investors have been selling down the Bank of Queensland share price today following the release of the bank’s half year results.

For the six months ended February 28, Bank of Queensland delivered a 38% lift in statutory net profit to $212 million and a 14% increase in cash earnings to $268 million. Management advised that this was driven by lending momentum, higher non-interest income, carefully managed costs, and a loan impairment expense credit in the half.

In respect to loan growth, Bank of Queensland reported a 9% increase in housing loans to $2.6 billion and an 8% lift in business loans to $600 million.

So why are its shares falling?

Given the above, investors may be wondering why the Bank of Queensland share price is falling today.

This weakness could have been caused by the bank’s performance versus the second half of FY 2021. While it recorded solid growth compared to the prior corresponding period, this wasn’t the case over the preceding half.

Versus that period, Bank of Queensland actually reported a 9% reduction in cash earnings.

When it comes to the banks, a lot of investors focus more on the performance against the previous six months rather than a year earlier because there are less seasonal factors at play compared to other sectors. So, this result could mean investors are interpreting this result as weaker than expected.

Furthermore, a note out of Citi highlights softer than expected housing loan growth from the ME business as an area of concern. Though, the broker concedes that Bank of Queensland easily beat its first half earnings estimates despite this.

The post Bank of Queensland share price sinks 6% on half year update appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
• Bank of Queensland shares in focus amid strong first half profit growth
• 5 things to watch on the ASX 200 on Thursday
• Brokers name 2 ASX dividend shares to buy
• Own Bank of Queensland shares? Here’s what to watch when the company reports this week

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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Shares in Brainchip Holdings Ltd (ASX: BRN) are inching lower today, extending losses to 13% for the month.

At the time of writing, the Brainchip share price is trading at 89.75 cents apiece, well off its 52-week high of $2.13 in January.

What’s up with the Brainchip share price?

Tech shares have been rocked in 2022 amid a shift in investor and macro-sentiment plus the emergence of new geopolitical risks in Europe.

Shares spiked back in March after a company report advising it had signed new sales partnerships with companies in Europe and Israel for its Akida platform.

Aside from that, it’s been a quiet few weeks from the tech holding company. Most of the downside can be attributed to sector weakness that’s also hurt many other ASX tech names.

The S&P/ASX All Technology Index (XTX) has slipped 19% this year to date, making it the worst performing sector on the Australian market.

As the yields on long-dated government bonds rise, and inflation data continues to suggest a costly period ahead, tech shares have fallen out of the limelight in 2022.

In the US in particular, the big FAANG stocks are no longer the darlings of the NYSE and Nasdaq.

Brainchip has suffered a similar fate in 2022. It’s stumbled off the former peak and now trades back near 2021 levels once again. Despite the reset, it is still trading 32% in the green this year to date.

However, from its previous high on 19 January, Brainchip has tanked 58%. Shareholders who bought in at that time need to see a return of more than 100% in order to reach that level again.

It’s also down 18% for the year, meaning Brainchip is now trailing the tech sector by a considerable amount, and the benchmark S&P/ASX 200 Index (ASX: XJO) by an even further distance.

The post Why has the Brainchip share price tumbled 13% in a month? appeared first on The Motley Fool Australia.

More reading

• Here’s a look at the laggards from ASX tech shares last quarter
• Compare the ASX share: An analysis of BrainChip vs Archer Materials
• Let’s get technical! 5 best All Ords tech shares of the quarter revealed
• How have ASX artificial intelligence shares been performing lately?
• Guess which ASX tech shares are leading the pack 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 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 Latin Resources Ltd (ASX: LRS) share price has come out of a trading halt on Thursday to reach a near multi-year high.

This comes after the lithium explorer announced an update on its recent capital raise.

At the time of writing, Latin Resources shares are up 2.70% to 19 cents a pop. It’s worth noting that its shares hit an intraday high of 20.5 cents before retracing during this morning’s trade.

Latin Resources completes placement

ASX investors are buying up Latin Resources shares today as the company seeks to progress its lithium business in Brazil.

According to its release, Latin Resources has received firm commitments to raise $35 million through a share placement.

The offer was presented to institutional and sophisticated investors at an issue price of 16 cents per share.

The company highlighted that it had strong support from Canadian cornerstone investor Electrification and Decarbonization AIE LP Fund (E&D Fund). A wholly-owned subsidiary of Toronto-based Waratah Capital Advisers, the E&D Fund invested a total of $15 million.

Latin Resources will use its existing placement capacity to create new shares for the institutional and sophisticated investors. Under listing rule 7.1, this allows up to 15% of its total shares to be issued without shareholder approval (74,478,284 shares and 109,375,000 options).

The company will use an extension to the listing rule (7.1A) to issue the remaining shares (144,271,716 shares) and 11 million options associated with Waratah’s investment. However, the latter is subject to shareholder approval at a general meeting to be held late next month.

Latin Resources will primarily use the proceeds to accelerate its Bananal Valley drilling program at the Salinas Lithium Project in Brazil. In particular, the funds will be allocated to the following:

• An aggressive resource definition program for the Bananal Valley prospect within the Salinas Lithium Project
• Exploration drilling at the Monte Alto and Salinas South lithium prospects in Brazil
• A Pre-Feasibility Study, a Direct Shipping Ore Study and metallurgical test work in respect of the Cloud Nine Halloysite-Kaolin Deposit in Western Australia, as well as regional exploration at the broader Noombenberry Project area
• Initial exploration drilling at the MT-03 Copper Project in Peru
• Working capital.

What did management say?

Latin Resources managing director Chris Gale commented:

Our results at Salinas have been exceptional, revealing we have some very high-grade lithium spodumene mineralisation.

We consider that winning the support of a technical-focused group, like Waratah’s E&D fund, who are very well-versed on the lithium sector, is a big tick of approval for what we are doing and where we are headed with our Salinas Lithium Project.

What’s really exciting is the roadmap ahead for LRS shareholders. We are relatively early in the discovery phase of our Salinas Lithium Project, and we have much work ahead of us, however the level of attention we are receiving from industry players suggests we are not alone in thinking that Latin has a chance to develop a highly valuable lithium project in Brazil.

About the Latin Resources share price

Latin Resources shares have gained about 290% in value over the past 12 months. The company’s share price reached a 52-week high of 22.8 cents on 6 April.

Latin Resources presides a market capitalisation of $305.10 million with 1.64 billion shares outstanding.

The post Why is the Latin Resources share price powering ahead today? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Latin Resources share price is on ice today
• Latin Resources share price surges 11% on ‘very positive’ lithium news
• Why did this ASX lithium share soar 18% today?
• Why Eagers Automotive, Firefinch, Latin Resources, and Piedmont Lithium are rising today
• Latin Resources (ASX:LRS) share price shoots 28% higher on potential ‘major new lithium discovery’

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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The Allkem Ltd (ASX: AKE) share price is on course to end the shortened week with a solid gain.

In morning trade, the lithium miner’s shares charged to a record high of $14.27.

The Allkem share price has since pulled back but currently remains up 3% to $13.67.

Why did the Allkem share price hit a record high today?

Investors have been bidding the Allkem share price today after the lithium miner delivered a record-breaking third quarter update.

For the three months ended 31 March, the company reported group revenue of US$235 million and a group gross operating cash margin of US$189 million.

This was driven by record revenue generation and high margins from its Mt Cattlin and Olaroz operations.

In respect to Mt Cattlin, it produced 48,562 dry metric tonnes (dmt) of spodumene concentrate and shipped 66,011 tonnes. Combined with average pricing of US$2,178 per dmt, this led to the Mt Cattlin operation generating record revenue of US$143.8 million.

It was equally positive over at Allkem’s Olaroz Lithium Facility. It produced 2,972 tonnes of lithium carbonate with sales of 3,157 tonnes during the quarter. And with Olaroz commanding US$27,236 per tonne for its lithium carbonate, the operation reported record revenue of ~US$86 million.

Pleasingly, management expects both Mt Cattlin and Olaroz to benefit from even higher lithium prices during the fourth quarter. As a result, the records set during this quarter are likely to be broken again in three months.

Is it too late to invest?

The team at Citi don’t believe it is too late to invest. The broker has put a buy rating and $16.00 price target on the company’s shares.

Based on the current Allkem share price, this implies potential upside of 17% for investors over the next 12 months.

It notes that “AKE’s strategy is to leverage its portfolio to maintain 10% market share and be a top three global producer.”

The post Lithium boom: Allkem share price hits record high on Q3 update appeared first on The Motley Fool Australia.

More reading

• Which ASX lithium shares does Macquarie tip to outperform?
• ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
• New ASX uranium share to hit boards next month and investors are already pouncing
• Allkem share price on watch following record-breaking third quarter
• Why is the Allkem share price having such a stellar day?

Motley Fool contributor James Mickleboro owns Orocobre Limited. 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 Pilbara Minerals Ltd (ASX: PLS) share price is ending a dramatic week on a high, leaping 1.18%.

Unfortunately, that sees the lithium-tantalum producer’s stock approaching the end of a short week notably lower than where it started.

At the time of writing, the Pilbara Minerals share price is $2,98, 0.68% higher than its previous close.

For context, the S&P/ASX 200 Index(ASX: XJO) is currently up 0.56%. Though, the ASX 200 has been left in the dust of the material sector on Thursday.

Right now, Pilbara Minerals’ home sector ­­– the S&P/ASX 200 Materials Index (ASX: XMJ) ­– has gained 1.03%, making it one of the best performing sectors on Thursday.

Let’s take a look at what’s been going on with the Pilbara Minerals share price this week.

What’s been driving the Pilbara Minerals share price?

Pilbara Minerals started this week out on the wrong foot, slumping 3.75% on news of its joint venture with Posco. The companies are building a downstream lithium chemicals conversion facility in Korea.

On Monday, Pilbara Minerals announced that all key conditions and criteria for the joint venture’s formation had been fulfilled.

Pilbara Minerals’ initial 18% stake in the venture will be mostly funded from a 5-year convertible bond, provided by Posco.

Additionally, as The Motley Fool Australia’s James Mickleboro reported at the time, the funding requirements for the project had been bumped US$50 million higher than previously forecasted.

Monday’s dip was worsened on Tuesday when the company released an update on the Pilgangoora project‘s quarterly performance.

Most of the project’s key metrics for the March quarter were within its previously given guidance. However, COVID-19 outbreaks and port disruptions hampered its production and shipping.

The Pilbara Minerals share price slumped 5.84% on the update. Luckily, it picked up on Wednesday, gaining 2.07%.

Additionally, after yesterday’s close, the company announced that the final condition for its joint venture with Posco has been satisfied.

Pilbara Minerals has drawn down around $79.6 million under the convertible bond agreement to fund its investment in the venture. In doing so, it has issued 79.6 million convertible bonds to Posco.

The non-price sensitive update might be bolstering sentiment in Pilbara Minerals shares on Thursday.

The post Why is the Pilbara Minerals share price having such a stellar end to the week? appeared first on The Motley Fool Australia.

More reading

• Which ASX lithium shares does Macquarie tip to outperform?
• New ASX uranium share to hit boards next month and investors are already pouncing
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the top 10 ASX mining companies by market cap
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO), as most investors would know, has had a bit of a wild time of it since February. It’s actually been a positive six weeks since the end of the second month of the year. The ASX 200 has gained 7.85%, although this move upwards has come with some significant volatility.

For instance, the ASX 200 has swung from a 1% loss since the start of April to a modest gain. But the picture is a lot brighter for a major ASX 200 constituent – the Commonwealth Bank of Australia (ASX: CBA).

CBA shares have spent the past six weeks rising an impressive 13.74%. That’s including the modest gain of 0.056% we’ve seen today. The CBA share price is $106.61 at the time of writing. 

This pleasing gain has put CBA within a few dollars of its all-time high of $110.19 reached in November.

So, after this performance, ASX investors might be wondering whether it is too late to buy.

Well, let’s see if ASX brokers reckon CBA shares are a buy or a sell.

Is the CBA share price a buy or a sell today?

Well, the news isn’t good for CBA investors when it comes to current ASX broker opinion. As my Fool colleague James covered this week, one broker who reckons CBA is a sell is Citi.

The broker gives CBA shares a 12-month price target of just $90.75. This implies that the ASX 200 bank share has a slide of almost 15% in front of it over the next year. While Citi sees good things ahead for the ASX banking sector as a whole, it doesn’t believe the current CBA share price is justified.

But it doesn’t end there. As we covered earlier this month, broker Macquarie is also bearish on CBA shares. Macquarie has an underperform rating on the CBA share price, with a 12-month target of $90. That again implies a potential downside of around 15%. Macquarie reckons the bank’s upcoming earnings report for FY2022 will disappoint. It’s predicting margin pressures and slowing growth.

So that’s the view of two prominent ASX brokers on CBA shares right now. Not exactly what you would call unbridled optimism. But, as always, we shall have to wait and see if these opinions turn out to be accurate.

CBA has a market capitalisation of $181 billion, with a dividend yield of 3.51%, based on today’s share price.

The post The CBA share price has leapt 14% since February. Too late to buy? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today
• 3 ASX All Ordinaries shares scaling new multi-year peaks today
• This lithium miner is set to list on the ASX next month following its IPO, and counts a Tesla supplier among its key investors

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 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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Most everyone investing in ASX shares is looking for companies that will go up in value over time.

And perhaps pay some healthy dividends along the way.

But that’s not the sole concern for many investors, who also seek out ASX shares that tick the environmental, social, and governance (ESG) boxes.

Socially conscious investors, for example, want to ensure a company’s workers are treated and paid fairly all along the supply chains.

Importantly, they also want to invest in companies with strong environmental awareness, generally avoiding ASX shares involved in the fossil fuel sector.

But 2022 has thrown up a fresh dilemma for ESG investors. One that’s also ensnared Australia’s super funds.

Maximise ASX share gains or invest ethically?

Energy costs, as you’ll know if you’ve been to the servo lately, have rocketed in 2022.

Crude oil, gas and coal prices were already trending higher heading into the new year, as the global reopening saw demand take-off faster than new supply could keep up.

Then oil-rich Russia’s invasion of Ukraine and the resulting sanctions against Russia put a rocket under fossil fuel prices.

Crude oil hit 13-year highs last month and coal traded at all-time highs. Today fossil fuel costs remain at multi-year highs.

And that’s seen ASX shares digging coal from the ground offer the best returns on the All Ordinaries Index (ASX: XAO) this year.

The super dilemma

Which brings us to the Your Future, Your Super performance benchmarking initiated by the Australian Prudential Regulation Authority (APRA) in July 2021. The regime applies to 80 MySuper products.

The system scores the super funds’ performance against a set of benchmarks. Underperforming funds are publicly named and told to up their game. Those who fail to match or beat the benchmark for 2 consecutive years can be banned from taking on new funds.

And it’s this benchmarking, said Jens Peers, CEO of ethical investment fund manager Mirova US, that may discourage super funds from investing in ASX shares involved in renewable energy, as these may be longer-term plays not yet returning big gains.

According to Peers (quoted by The Australian):

The Your Future, Your Super regulation has a short-term focus on single risk management… The world is going to a low-carbon economy. There is no doubt in my mind that fossil fuels will suffer and find it very difficult to benefit financially. Renewables will do a lot better, but there will be times — such as this year — when fossil fuel companies outperform them.

Peers said APRA’s benchmarking process encourages super funds looking at ASX shares to “all move in the same direction and take no convictions in their portfolios… If you have this short-term focus on investment returns, super fund trustees and the investment personnel at big super funds may not want to make that commitment.”

“Some of these companies may not be sustainable or environmentally friendly,” he added. “Some people really care how their money is invested and they want to see that it is being done in a way which will create an impact.”

To give you a better idea of the dilemma facing super funds under APRA’s benchmarking microscope, here’s how ASX shares in renewable energy stacked up against their fossil fuel peers in the first quarter of 2022.

And we’ll use the 0.1% gain posted by the All Ords in Q1 as our benchmark.

How ASX shares in renewables compare to their fossil fuel peers

ESG investors, brace yourself.

Throwing our focus on short-term investment returns, the numbers for Q1 aren’t good.

First, we’ll look at best performing ASX shares in the renewable energy sector.

Mercury NZ Ltd (ASX: MCY) generates more than 15% of New Zealand’s electricity and all of that electricity is generated from renewable sources. The company has a market cap of $7.5 billion and pays a 3.2% trailing dividend yield, unfranked.

The Mercury share price lost 2.4% in Q1.

Next up we have ASX renewable energy share Contact Energy Ltd (ASX: CEN). The New Zealand-based electricity provider produces some 85% of its electricity from renewable hydro and geothermal stations. The company has a market cap of $5.7 billion and pays an unfranked 4.4% trailing dividend yield.

The Contact Energy share price dipped 1.2% in Q1.

The best performing ASX share in renewable energy was Meridian Energy Ltd (ASX: MEZ). With a market cap of $11.4 billion, Meridian is New Zealand’s largest electricity generator. It generates 90% of its energy from hydro with the rest from wind. The company pays a 3.5% trailing dividend yield, unfranked.

The Meridian Energy share price beat the All Ords benchmark, gaining 3.4% over the first quarter.

As for the fossil fuel stocks?

The super dilemma becomes clear when you look at the comparative performance of ASX shares in the fossil fuel space.

In fact, the top 3 performers on the All Ords in Q1 were all coal stocks.

Coronado Global Resources Inc (ASX: CRN) produces metallurgical coal, which is used in the production of steel. The company has a market cap of $3.8 billion and doesn’t currently pay a dividend.

Coronado shares gained 61% in Q1.

Also rocketing higher and unlikely to make the list of ASX shares receiving the ESG tick of approval was Yancoal Australia Ltd (ASX: YAL). Yancoal is Australia’s largest pure-play coal producer, managing and operating a broad portfolio of coal mines across the country. Yancoal has a market cap of $6.7 billion and pays a 10.4% trailing dividend yield.

The Yancoal share price leapt 71% higher in the March quarter.

Which brings us to the best performing ASX share in Q1, Stanmore Resources Ltd (ASX: SMR). In April 2021, Stanmore Resources was rebranded from its former name, Stanmore Coal, which tells you how the company earns its revenue. Stanmore has a market cap of $1.6 billion and pays a fully franked 4.3% dividend yield.

And the Stanmore Resources share price rocketed 83% in the first quarter.

With APRA running the yardstick over their comparative performance, you can see the ESG dilemma facing fund managers in deciding which ASX shares to add and which to cut from their portfolios.

The post Maximise ASX share gains or invest ethically? The SUPER dilemma appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Guess which 2 ASX shares were the best and worst All Ordinaries performers of the quarter
• ASX mining shares were the leaders last quarter. Here are the top performers
• The best ASX All Ordinaries shares of the March quarter unmasked
• Rain or sunshine for ASX renewable shares in the March quarter?

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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Major broker Macquarie has weighed in on the lithium market and tipped its preferred ASX shares.

There are four ASX lithium shares that Macquarie thinks will outperform.

Which ones are they and how are they going today?

Broker reveals preferred ASX lithium shares

Macquarie favours Mineral Resources Limited (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS), the Australian Financial Review reports.

The Mineral Resources share price is up 0.61% today and is currently trading at $62.21. Macquarie has placed an $83 price target on the company’s shares. This is 33% higher than the current share price.

Macquarie reckons the Pilbara Minerals share price will hit $4.30. Pilbara is rising 1.35% today and is currently trading at $3. This means Macquarie is predicting a 43% upside.

The Macquarie analysts also think ASX lithium shares Allkem Ltd (ASX: AKE) and Liontown Resources Ltd (ASX: LTR) will outperform their peers. The Allkem share price is lifting 3.3% following the miner’s results release today showing a record-breaking third quarter. Meantime, the Liontown share price is down 0.3%.

Allkem has a 66.5% interest in the Olaroz lithium carbonate project in Argentina.

Commenting on Allkem, Macquarie said:

AKE’s production is expected to increase 125% from 50kt Lithium Carbonate Equivalent (LCE) in FY21 to over 120kt beyond FY26, leveraging the buoyant lithium pricing market.

Liontown is exploring lithium in the Kathleen Valley and Buldania in Western Australia. The company aims to produce battery minerals to power electric vehicles (EV). It states that by 2030, an estimated 145 million EVs will be on the road.

The post Which ASX lithium shares does Macquarie tip to outperform? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
• New ASX uranium share to hit boards next month and investors are already pouncing
• Allkem share price on watch following record-breaking third quarter
• Why is the Allkem share price having such a stellar day?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the shortened week with a solid gain. The benchmark index is currently up 0.55% to 7,521.1 points.

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

Bank of Queensland tumbles

The Bank of Queensland Limited (ASX: BOQ) share price is tumbling today following the release of the regional bank’s half year results. For the six months ended February 28, Bank of Queensland delivered a 14% increase in cash earnings to $268 million. Management advised that this was driven by lending momentum, higher non-interest income, carefully managed costs, and a loan impairment expense credit in the half. However, its performance versus the prior half was weaker, with cash earnings down 9% over that period.

Allkem shares jump on third quarter update

The Allkem Ltd (ASX: AKE) share price is racing higher today following the release of a record-breaking third quarter update. Thanks to record revenue generation at Mt Cattlin and Olaroz, Allkem reported quarterly group revenue of US$235 million and group gross operating cash margin of US$189 million. These records won’t stand for long, with management expecting lithium prices to be even stronger during the fourth quarter.

Netwealth shares fall on Q3 update

The Netwealth Group Ltd (ASX: NWL) share price is in the red today after the release of the investment platform provider’s quarterly update. Netwealth reported a modest 1.6% increase in funds under administration (FUA) to $57.6 billion. Though, it worth noting that this growth was achieved despite the company facing negative market movements which impacted its FUA by $1.7 billion.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Qantas Airways Limited (ASX: QAN) share price with a 6% gain on no news. Going the other way, the worst performer has been the Bank of Queensland share price with a 5% decline. This follows the release of the bank’s half year results this morning.

The post ASX 200 midday update: Bank of Queensland sinks, Allkem jumps appeared first on The Motley Fool Australia.

More reading

• New ASX uranium share to hit boards next month and investors are already pouncing
• Allkem share price on watch following record-breaking third quarter
• Bank of Queensland shares in focus amid strong first half profit growth
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today

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