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The CSL Ltd (ASX: CSL) share price may have suffered since early 2020, but can it recover in the near future?

CSL shares have dropped 21% since 21 February 2020, close to the onset of the COVID-19 pandemic. In today’s trade, the company’s shares climbed 1.43% to $265.60 apiece.

So what is the outlook for the CSL share price?

Where is the CSL share price heading?

Citi analysts have recently upgraded CSL to a buy with a $335 price target. That’s 27% higher than its current value. Citi’s price would take the share very close to its five year high of $336.40 on 21 February 2020. The broker is optimistic plasma collection improvements will have a positive impact on the company’s shares.

FNArena founder Rudi Filapek-Vandyck also predicts the CSL share price will rise again soon. The analyst believes CSL “will find its mojo again”. Filapek-Vandyck added:

I recently bought some extra shares in CSL. The business model was disrupted because of COVID… If I look forward to the next two to three years, I see an environment where CSL will again come to the fore.

Looking to the near future, CSL could also be one of the companies to benefit from onshore manufacturing of pharmaceuticals, announced in the lead up to the federal budget. My Foolish colleague Zach reported today Bloomberg’s Jackie Edwards believes this manufacturing push could put CSL in the spotlight. The federal budget will be delivered this evening at 7.30 pm.

JP Morgan analysts have also put an overweight rating on CSL, valuing the company at $295 per share. This is 11% more than the current share price.

CSL recently made the cut for a list of one of the greatest ASX listed companies of all time. QVG Capital included CSL in a list of its ASX “hall of famers”.

Share price snapshot

The CSL share price has dropped nearly 9% year to date while it is up a slim 0.08% in the past year.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained nearly 10% in the past 12 months.

CSL has a market capitalisation of around $128 billion based on its current share price.

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

More reading

• Expert reveals 3 ASX shares to watch following tonight’s federal budget
• Why the CSL (ASX:CSL) share price will ‘find its mojo again’: expert
• 3 ASX shares I own myself that will rise again soon: expert
• Top brokers name 3 ASX shares to buy next week
• 2 blue chip ASX 200 shares analysts are urging investors to buy

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL 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 Bruce Jackson.

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The Coles Group Ltd (ASX: COL) share price has been a positive performer over the last 12 months.

Since this time last year, the supermarket giant’s shares are up 14%.

Can the Coles share price keep rising?

Unfortunately, one leading broker believes the Coles share price has peaked for the time being.

According to a note out of Goldman Sachs, its analysts have initiated coverage on the company’s shares with a neutral rating and $16.40 price target.

Based on the current Coles share price of $17.93, this implies potential downside of approximately 8.5% for investors over the next 12 months.

What did the broker say?

Goldman has been looking at the food & beverage (F&B) sector and given its verdict on the major players.

While it rates Endeavour Group Ltd (ASX: EDV) and Woolworths Group Ltd (ASX: WOW) as buys (here and here), it can only muster up a neutral rating for Coles due to its lagging digital and data capabilities and valuation.

Goldman said:

“Coles Group is the 2nd largest supermarket in Australia. We view Coles as being less advanced in digital and data capabilities than Woolworths. In the short term, we expect Coles to be more defensive in an inflationary environment and see it as more protected from global supply chain disruptions given higher local sourcing for fresh. We initiate on Coles group with a Neutral rating.”

In respect to its data capabilities, the broker fears that Coles’ lower quality consumer data assets could result in further market share gap.

It explained:

“COL’s primary sources of consumer data are its own sales transaction records and Flybuys loyalty program. Contrasting with WOW’s Everyday Rewards, Flybuys is ~8mn members vs Everyday Rewards [EDR] ~13mn members and while EDR is wholly owned by WOW, Flybuys is an independent JV, 50/50 owned with Wesfarmers. This implies that WOW is able to access a larger pool of consumer insights in EDR more freely, whereas the terms of COL’s access would need to be negotiated with Flybuys and Wesfarmers – i.e. they potentially may have less and more costly access.

The direct relationship with consumers also lies with Flybuys and not COL. We acknowledge that Flybuys does have a broader coverage of businesses including most recently Bunnings and Officeworks but these are shared on a grouped, attribution basis only (i.e. 3rd party data) where the exact impact on business remains to be proven. Net net, we expect an opening of market share leadership between WOW and COL, which we forecast to expand from 8.8pts in 2022 to 10.3pts by 2024.”

All in all, the broker believes investors should be buying Woolworths shares and waiting for a better entry point with the Coles share price.

The post Top broker gives its verdict on the Coles (ASX:COL) share price appeared first on The Motley Fool Australia.

More reading

• Could these ASX shares get a boost from tonight’s federal budget?
• Is the Coles (ASX:COL) share price a top buy for dividends?
• Brokers name 3 ASX shares to buy today
• Broker: The Coles (ASX:COL) dividend will keep rising
• Analysts name 2 ASX 200 dividend shares to buy now

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 owns and has recommended COLESGROUP DEF SET. 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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Commonwealth Bank of Australia (ASX: CBA) shares have proven to be one of the better ASX 200 blue chips to have owned in recent times. While the S&P/ASX 200 Index (ASX: XJO) is still down around 1.65% year to date in 2022 so far, the CBA share price has put on a market-beating 3.8%. That includes today’s gain of 0.22% to $106.37.

Over the past 12 months, CBA shares are also up a very pleasing 24.6%, again comparing favourably to the ASX 200’s far more modest 10.8%.

But now that Commonwealth Bank shares have got those gains under the belt, and are now only a few dollars off the ASX banking giant’s all-time high of $110.19 a share, could it be time to reconsider owning CBA? Or are CBA shares still a buy today? Let’s see what some ASX investing experts reckon.

Is the CBA share price a buy or a sell for April 2022?

Citi is an ASX broker that, perhaps unfortunately for CBA investors, lies in the latter camp. Earlier this week, we covered how Citi retained a sell rating on CBA shares. This came with a 12-month share price target of $90.75. If that turned out to be accurate, it would result in the CBA share price losing close to 15% over the next 12 months.

Citi reckons CBA’s chances of continuing to outperform the other ASX big four banks into the future are remote due to the lack of potential growth opportunities. It also sees the current CBA share price as a little overvalued, especially compared to the other big four ASX banks.

But Citi isn’t the only broker who doesn’t see much in the current CBA share price. Earlier this month, we also looked at fellow ASX broker Morgan Stanley’s views on CBA. Like Citi, Morgan Stanley is sell rated on CBA shares. It has a not too dissimilar 12-month share price target of $92 for the bank. It also sees the CBA share price as overvalued right now.

So the view is widespread among the ASX broker community on CBA, it seems. Perhaps not what investors are looking to here right now. But only time will tell if buying or selling CBA shares today will turn out to be a good idea.

At the current CBA share price, this ASX 200 bank has a market capitalisation of $181.1 billion, with a dividend yield of 3.52%.

The post Buy or sell? ASX experts rate the CBA share price for April appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why international investors are flocking to ASX shares right now
• Do Flight Centre shares pay dividends?
• 2 ASX shares to guide you through a turbulent 2022: expert
• 5 things to watch on the ASX 200 on Tuesday

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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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Evolution Mining Ltd (ASX: EVN)

According to a note out of UBS, its analysts have downgraded this gold miner’s shares to a sell rating with an improved price target of $4.23. Although the broker has bumped its gold price forecasts higher and lifted its valuation for Evolution accordingly, it isn’t enough for a more positive rating. The broker has downgraded the miner’s shares on valuation grounds. The Evolution share price was trading at $4.41 on Tuesday.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this iron ore giant’s shares to $15.95. Although the broker expects Fortescue to benefit from stronger than previously expected iron ore prices, it can’t look beyond the company’s valuation. It feels Fortescue’s shares are overvalued and also has concerns with costs relating to its Fortescue Future Industries business. The Fortescue share price was fetching $19.49 today.

Premier Investments Limited (ASX: PMV)

Analysts at Goldman Sachs have retained their sell rating but lifted their price target on this retail conglomerate’s shares to $24.30. While Goldman acknowledges that Premier Investments’ first half result was solid and its gross margin was strong, it suspects the consumer environment will soften over the next year. In light of this and the significant premium that it trades on compared to its peers, the broker believes its shares are expensive at current levels. The Premier Investments share price was trading at $28.32 on Tuesday.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• Why Evolution, Fisher & Paykel Healthcare, St Barbara, and Zip shares are falling
• What is the outlook for ASX 200 mining shares in April?
• How big will the Fortescue (ASX:FMG) dividend be in 2022?

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 recommended Premier Investments 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 Magellan Financial Group Ltd (ASX: MFG) share price launched higher on Tuesday despite no news being released by the company.

Shares in the embattled funds management business tumbled 9.78% last week and another 1.34% on Monday. Hence, today’s gains might be a simple market correction after the selloff.

At market close, the Magellan share price finished at $15.01, 7.14% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) closed up 0.7% while the All Ordinaries Index (ASX: XAO) gained 0.75%.

Let’s take a closer look at Magellan’s performance today and how the company tracked compared to its sector’s movements.

What’s going on with the Magellan share price on Tuesday?

The Magellan share price took off on Tuesday, reaching an intraday high of $15.08, representing a 7.6% increase.

That’s a significantly better performance than that of the S&P/ASX 200 Financials Index (ASX: XFJ). It closed up 0.57%, with Magellan its best performing stock.

The funds management company was trailed closely by Zip Co Ltd (ASX: Z1P) which gained 4.76% on Tuesday.

The Pinnacle Investment Management Group Ltd (ASX: PNI) was the sector’s third-best performer. Its share price closed 4.14% higher today.

Today marks a rebound for the Magellan share price. It has been mostly in the red since the company announced its founder and former chair Hamish Douglass had resigned from its board last week.

Douglass stepped away from his role as chair and chief investment officer for a period of medical leave in February.

Unfortunately, today’s gains haven’t been enough to boost the Magellan share price back into the green.

It is still 29% lower than it was at the start of 2022. It has also fallen 66% since this time last year.

The post Why did the Magellan (ASX:MFG) share price soar 7% on Tuesday? appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• 3 high-yield ASX dividend shares trading near 52-week lows
• Why Adairs, Betmakers, Magellan, and Northern Star shares are dropping
• Magellan (ASX:MFG) share price higher despite Hamish Douglass resignation news
• Down 80%, what’s gone so wrong for Magellan (ASX:MFG) shares?

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. owns and has recommended PINNACLE FPO and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. 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 Liontown Resources Limited (ASX: LTR) share price is having a positive day on Tuesday.

In afternoon trade, the lithium developer’s shares are up 3% to $1.89.

This latest gain means the Liontown share price is up 340% since this time last year.

Can the Liontown share price keep rising?

The good news for shareholders is that one leading broker believes the Liontown share price still has a long way to run.

According to a note out of Bell Potter, its analysts have retained their speculative buy rating and $3.06 price target on the company’s shares.

Based on the current Liontown share price, this implies potential upside of 60% for investors over the next 12 months.

What did the broker say?

Bell Potter notes that Liontown has reported positive drilling results which confirm the growth potential of the Buldania Lithium Project. The broker commented:

“Buldania is LTR’s early stage lithium exploration project where a maiden Indicated and Inferred Mineral Resource Estimate of 14.9Mt at 0.97% Li2O and 44ppm Ta2O5 was identified in late 2019.

LTR see Buldania as complementary to its advanced Kathleen Valley Lithium Project and having the potential to provide additional spodumene concentrate to future downstream processing capacity.”

“We now expect further extension and infill drilling to be completed before LTR updates the current Buldania Mineral Resource Estimate.”

In the meantime, though, Bell Potter is very positive on the company’s Kathleen Valley Lithium Project. The broker believes it leaves Liontown well-placed to benefit from a lithium market which is booming thanks to demand outstripping supply.

Its analysts commented: “LTR is funded for Kathleen Valley’s initial development capital where a definitive feasibility study outlined 658ktpa SC6 production and potential for conversion into 86ktpa lithium hydroxide. LTR is independent and debt free; a strong strategic position in a market for lithium facing supply shortages.”

The post Lithium boom: Top broker tips Liontown (ASX:LTR) share price to jump 60% appeared first on The Motley Fool Australia.

More reading

• Experts name 3 of the best ASX lithium stocks to buy now
• These 3 ASX 200 shares are topping the volume charts this Monday
• Why Block, Core Lithium, Liontown, and Qube shares are rising
• ‘Exciting’ results: Here’s why the Liontown (ASX:LTR) share price is climbing 6% today
• Brokers name 3 ASX shares to buy today

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

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The Santos Ltd (ASX: STO) share price may have upside in the future, but today the company’s shares are falling.

Santos shares have dropped 0.5% and are currently swapping hands at $7.90. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.81% today.

Let’s take a look at what the experts are saying about Santos.

What’s the outlook for Santos?

Energy giant Santos could be the “poster child” for the future due to the company’s “clear” decarbonisation strategies, according to one expert.

Tribeca Investment Partners partner Ben Cleary told the Australian Financial Review Santos has gone from a heavy emitter to a company that will produce a lot of carbon offsets. He said:

Those who have raced for the door, looking to divest, have all missed the woods from the trees. Santos is decarbonising and is implementing a great strategy, and they are likely to all come back and own these companies.

Cleary expressed concern about the “underinvestment in oil and gas” which is being seen “very clearly in the energy crisis that we see now”. He added:

But this 2.0 approach is to invest in companies that have clear decarbonisation strategies. In my humble opinion, Santos is that company. It has to be the global poster child for this policy change and investing in the transition.

Macquarie recently upgraded the Santos share price to an “outperform” rating and has increased the price target to $10.50. That suggests a potential upside of 33% from the current price.

Oil prices

The Santos share price may be slightly down today, but it is not the only energy share price to fall. The S&P/ASX 200 Energy Index (ASX: XEJ) is sliding 0.61%. Beach Energy Ltd (ASX: BPT) shares are down 1.98%, while the Woodside Petroleum Limited (ASX: WPL) share price is down 1.4%.

International benchmark Brent Crude Oil price has descended 1.3% % to US$111.02 a barrel, while the WTI crude oil price is down 1.17% to US$104.49 a barrel, according to Bloomberg.

Santos share price snapshot

The Santos share price has gained more than 9% in the past 12 months and is steaming ahead 25% this year to date.

In contrast, S&P/ASX 200 Index (ASX: XJO) has returned nearly 10% over the past year.

In the last month, Santos shares have soared 10%, while they have climbed nearly 4% in the past week alone.

Santos has a market capitalisation of about $26.7 billion based on the current share price.

The post Global poster child? Why this fundie is bullish on the Santos share price appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here’s why Macquarie just upgraded the Santos (ASX:STO) share price
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday
• Santos (ASX:STO) share price lower despite ‘significant oil discovery’

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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Shares in Alligator Energy Ltd (ASX: AGE) are on the move today following a positive company announcement to the ASX.

At one point, the uranium miner’s shares surged 15% to an intraday high of 11 cents before retracing during midday trade.

Currently, Alligator shares are 1.04% lower at 9.5 cents.

“Exceptional high-grade uranium results”

Investors were bidding up the Alligator Energy share price this morning after the company reported “exceptional high-grade uranium results” from the Samphire Uranium Project in South Australia.

According to the company’s release, Alligator Energy advised it has received strong results from resource infill drilling, a downhole prompt fission neutron (PFN) logging program, and further sonic core results.

The company noted a rotary mud (infill) drilling program in the Blackbush deposit has concluded ahead of schedule. All holes were successfully logged with PFN, three-arm caliper, resistivity, neutron porosity, and natural gamma.

Some of the results included:

• Hole 021 at 3.44 metres at 0.854% pU3O8 from a depth of 56.88 metres;
• Hole 026 at 4 metres at 0.706% pU3O8 from a depth of 63 metres;
• Hole 020 at 4,24 metres at 0.414% pU3O8 from a depth of 61.23 metres; and
• Hole 034 at 4.35 metres at 0.313% pU3O8 from a depth of 69.10 metres.

In addition, Alligator Energy highlighted results from three sonic cored holes with U3O8 and GT highlights. There are as follows:

• Hole 002 at 6.60 metres at 0.204% U3O8 from a depth of 65 metres;
• Hole 003 at 4.32 metres at 0.165% U3O8 from a depth of 72.45 metres; and
• Hole 004 at 8.00 metres at 0.134% U3O8 from a depth of 62 metres.

The company noted that there is still another 10 holes that are awaiting further results.

Management commentary

Alligator Energy CEO Greg Hall commented:

These exceptional PFN and further assay results are expanding the known high-grade area within the Blackbush deposit. The visual inspection of core, combined with the downhole geophysical data from PFN holes, is showing that Blackbush mineralisation is hosted in lithologies with permeability amenable to ISR, and with an apparent consistency of mineralisation that Alligator believes bodes well for our planned resource confidence update and Scoping Study.

… These results combined with the ongoing correlations with historical information are aimed to achieve our objective of increasing confidence levels in our Blackbush JORC resource.

About the Alligator Energy share price

Over the last 12 months, the Alligator Energy share price has gained an astonishing 464% for investors. This has been on the back of a significant uptick in uranium futures which has almost doubled in a year.

Based on today’s price, Alligator Energy commands a market capitalisation of roughly $309 million.

The post Here’s why the Alligator Energy (ASX:AGE) share price was snapping higher today appeared first on The Motley Fool Australia.

More reading

• Global poster child? Why this fundie is bullish on the Santos share price
• Here’s why the Catapult (ASX:CAT) share price is racing 7% higher today
• Macquarie calls ‘pens down’ on Uniti (ASX:UWL) takeover but more suitors possible
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Is the EML (ASX:EML) share price on the comeback trail?

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 Catapult Group International Ltd (ASX: CAT) share price has been a very strong performer on Tuesday.

In afternoon trade, the sports analytics and wearables company’s shares are up over 8% to $1.39.

Why is the Catapult share price racing higher?

Investors have been bidding the Catapult share price higher today following a rebound in the tech sector and the release of a positive announcement.

In respect to the latter, this morning Catapult revealed that it has signed a multi-year deal with the single largest sports federation in the world, the German Football Association.

According to the release, the deal will see the German Football Association leverage Catapult’s technology to capture performance data via video, track athlete performance via wearables, and improve the analysis infrastructure at all levels of the German National Football Team.

Management believes this multi-solution contract is the latest proof of the market demand for Catapult’s combined suite of solutions since it acquired SBG Sports Software in June 2021. The company’s integrated platform allows coaches to bring athlete data sets directly to the video screen.

Management commentary

Catapult’s CEO, Will Lopes, commented: “We strive everyday to unleash the potential of every athlete and team, and we’re proud to partner with the prestigious German Football Association to fulfil that ambition. We’re looking forward to partnering with the DFB to unlock what even the best coaches in the world cannot see on film or from the sidelines. This technology will empower athletes at all levels with data and insights to perform at their best.”

This sentiment was echoed by the Head of Analysis for the German Football Association, Christofer Clemens.

He said: “Catapult’s solutions allow us to make objective decisions about how we train our athletes and how we establish our competitive advantage over opponents. It gives coaches and athletes confidence that they are seeing a full view of performance for everyone on the pitch. This deal will power our insights over a number of years.”

The post Here’s why the Catapult (ASX:CAT) share price is racing 7% higher today appeared first on The Motley Fool Australia.

More reading

• Here are 3 small cap shares brokers rate 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. owns and has recommended Catapult Group International Ltd. The Motley Fool Australia owns and has recommended Catapult Group International 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 Uniti Group Ltd (ASX: UWL) share price is in the red after the company abandoned Macquarie Group Ltd (ASX: MQG)’s takeover offer in favour of Morrison and Co’s increased bid.

ASX investment banking giant, Macquarie has reportedly put its pens back on the table in response to the accepted $5 per share bid – complete with updated terms – put forward by Morrison & Co and its recently enfolded bidding partner, Brookfield.

But, as Macquarie is backing away from the proposal, another broker is reportedly predicting a bidding war for the telecommunications infrastructure company.

At the time of writing, the Uniti share price is $4.65, 1.38% lower than its previous close.

Let’s take a closer look at Macquarie’s reported exit from the battle for Uniti and who could take its place.

Uniti share price slips as Macquarie reportedly surrenders

The Uniti share price has dipped into the red this afternoon amid reporting by The Australian and the Australian Financial Review claiming that Macquarie will step back from its recent bid for the telco.

Macquarie’s Macquarie Infrastructure and Real Assets Holdings (MIRA) teamed up with Canadian fund Public Sector Pension Investment to lob a $5 per share takeover bid for Uniti last week.

In doing so, the pair – dubbed the ‘Connect Consortium’ – outbid Morrison & Co’s previous offer by 50 cents per share.

In response, Morrison & Co teamed up with Brookfield. They lobbed their own $5 per share bid today. The newly sweetened offer is conditional on Uniti ending engagement with the Connect Consortium and its proposal.

The bidders were wary Macquarie might be allowed access to “competitively sensitive information” during due diligence. That fear was stoked by MIRA’s stake in Uniti’s competitor, Vocus Group.   

Additionally, Morrison & Co entered 4 weeks of exclusive due diligence before the Connect Consortium lobbed its bid. However, the latter’s proposal was also conditional on 4 weeks of its own due diligence. During that period, Uniti would be unable to accept a rival bid.

Thus, the company decided the bids were “clearly incompatible”. As a result, Uniti’s board accepted Morrison & Co and Brookfield’s latest takeover bid, seemingly leaving Macquarie out on the street.

Though, the investment bank doesn’t appear too phased. Sources in the know reportedly told The Australian it’s “pens down” for the Connect Consortium for now.

Is a bidding war still on the cards?

As The Motley Fool Australia recently reported, JP Morgan and Bell Potter both predicted that a bidding war to acquire Uniti could break out last week.

Today, Shaw & Partners has reportedly thrown bets on the same horse. Shaw & Partners broker James Nicolaou has been quoted by The Australian as saying more bidders will likely come for the telco.

The broker was quoted as saying Uniti is currently “[Australia’s] highest quality growth infrastructure asset” and could draw the attention of Aware Super.  

Aware Super – formerly named First State Super – unsuccessfully bid against Uniti in the battle to takeover Opticomm in 2020.

“Aware Super showed a huge desire via that bidding war, that involved several bids and due diligence, that they want to own a quality long term annuity infrastructure business,” said Nicalaou.

“They also have an intimate knowledge of the business from that last process.”

Previously, JP Morgan reportedly stated Uniti’s shares could bring about a price of $7 apiece.

The post Macquarie calls ‘pens down’ on Uniti (ASX:UWL) takeover but more suitors possible appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Here’s how Macquarie (ASX:MQG) is changing its portfolio of ASX shares in response to the Ukraine crisis
• Uniti (ASX:UWL) share price climbs 4% as Morrison ups the ante
• Growth will be back! Expert picks 7 ASX shares to buy now
• AMP (ASX:AMP) share price lower on asset sale news

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 recommended Macquarie Group Limited and Uniti 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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