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An ASX healthcare share is racing into the green today following an update from the US Food and Drug Administration (FDA). The Noxopharm Ltd (ASX: NOX) share price has rocketed 17.19% today and is currently at 38 cents.

In earlier trade, the Noxopharm shares exploded 21% to 40 cents.

Let’s take a look at what the company announced.

Orphan drug designation

The Noxopharm share price is soaring after the biotechnology company received Orphan Drug Designation (ODD) by the FDA for Veyonda.

Veyonda is the company’s lead oncology drug candidate for the treatment of soft tissue sarcoma, an aggressive cancer.

The granting of ODD provides Noxopharm with seven years of market exclusivity for the drug and a waiver of new drug application fees. In 2021, the cost for a new drug application was about $2.9 million.

The FDA will also assist with regulatory guidance during the drug development process. Noxopharm said out of 360 ODD’s approved last year, only four went to Australian companies.

Noxopharm is currently conducting a CEP-2 trial using Veyonda in the treatment of patients with soft tissue sarcoma in the United States.

Commenting on the news fuelling the Noxopharm share price today, CEO Dr Gisela Mautner said:

It is pleasing that the Noxopharm application for Orphan Drug Designation was approved so quickly.

The 7-year period of market exclusivity is commercially extremely valuable, as it means that the FDA will not approve a subsequent drug for the same use within this timeframe.

With the FDA orphan drug designation now secured for Veyonda, the Noxopharm team is excited to move our preclinical assets along the drug development process, while continuing to deliver on our clinical program plan.

Thirty patients are being enrolled in the clinical trials to investigate the use of the drug. The City of Hope Cancer Center in Los Angeles has started treatment already.

Noxopharm share price snapshot

The Noxopharm share price has dropped 43% in the last year, while it has fallen 4% year to date. For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned more than 9% over the past year.

In the past month, this ASX healthcare share has dropped 1.3% although it has climbed by almost 9% over the past week.

The company has a market capitalisation of about $108 million.

The post This ASX healthcare share is surging 17% on a new FDA ruling appeared first on The Motley Fool Australia.

More reading

• 1 investing strategy to grow your money like magic
• 3 ASX 200 shares smashing multi-year highs on Tuesday
• Ramsay (ASX:RHC) share price pushes higher on US$1.35bn proposal for Asian JV
• This quality ASX 200 share is trading on its ‘cheapest multiple for the past 5 years’
• The BHP share price is up 5% today. What’s going on?

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

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

There are dozens of investing strategies you can dive into as an individual investor. You can invest in growth stocks or dividend stocks or index funds. You can diversify with cryptocurrencies. You might use options or a real estate mortgage to add leverage.

But there’s one overall investing strategy that works extremely well for individual investors: taking a long-term view. Making an investment decision through the lens of what it will look like 5, 10, or 20 years out leads to fantastic results for most investors. Here are the advantages of thinking long term.

You get time to be right

Trying to predict where a stock price will be a year from now is really difficult. There may be dozens of professional Wall Street analysts following any individual company and providing their predictions about where the stock price will be a year from now. Two highly intelligent professionals can have drastically different answers for where they think the stock price will be in a year, and they’re often both wrong.

A stock price is frequently influenced by factors beyond the control of management, and it may not reflect the operations of the company. If a global pandemic breaks out, for example, the entire stock market may decline.

Over the long run, however, winners start to emerge. A good company’s stock will outperform its peers. Investing in these companies will pay off, but it could take a while.

Historically, the U.S. stock market has delivered very strong returns, but it’s had spells of much lower than expected returns too. In fact, you could’ve done better investing in alternative assets like money market accounts or bonds during some stretches in the market. The longer you stay invested, though, the more likely U.S. stocks are to outperform other asset classes.

See the following table for the rolling-period returns of the S&P 500 (adjusted for inflation) and how it compares to the returns of bonds.

Metric	5 Years	10 Years	20 Years
Lowest CAGR	(13.2%)	(5.9%)	(0.2%)
Highest CAGR	33.4%	20.0%	13.6%
Average CAGR	7.2%	6.9%	6.6%
% of periods outperforming bonds	72.5%	85.6%	98.1%

Data source: Robert Shiller. CAGR = compound annual growth rate.

The longer you stay invested, the more likely you are to generate a positive real return and outperform bonds. A long-term horizon gives you more time to be right, even if you’re wrong in the short run.

Take bigger bets

Using a long-term investing strategy also allows you to take bigger bets on companies sharing your long-term vision. A company may invest heavily in research and development and scaling its business, and it might burn cash for many years before its efforts pay off with meaningful earnings.

Amazon (NASDAQ: AMZN) is a prime example (pun intended) of a company that makes long-term bets that negatively affect its operating income in the short term. But the bets it’s made have paid off extremely well, cementing its dominant position in online retail by littering the country with fulfilment centers while building a market-leading cloud computing platform and the third-largest digital advertising business in the U.S. These bets required significant investments with extended time horizons — it’s only in the past few years that Amazon has generated meaningful operating profits.

If you’re confident in management’s ability to take big bets and cut losses when they fail — as with the Fire Phone — you can easily withstand the short-term ups and downs of growth stocks with great long-term potential.

Lower your tax burden

Maintaining a long-term outlook also allows you to keep your tax burden low. If and when you need to sell a stock — because it no longer fits your thesis, you need to rebalance, or to liquidate holdings — you’ll likely be able to take long-term capital gains. Long-term capital gains receive a favorable tax rate, usually 15% for most people, versus short-term gains, which are taxed at your marginal income tax rate.

Not only that, but you’ll also be able to plan your taxes more effectively. You may take capital gains at the most opportune time, filling up the 0% tax bracket. You may be able to harvest capital losses and offset your gains. There are lots of tax strategies you can take advantage of when you maintain a long-term outlook.

Keeping your tax burden low ensures you keep more of your capital invested, instead of cutting a big check to the IRS every year. The more capital you can keep invested, the bigger your portfolio will grow over time, because not only are you saving money on taxes every year, that money compounds along with your other investments.

If you maintain a long-term outlook, you’ll have more patience for investments that you believe will eventually outperform. Ultimately, that’s the best path to grow your money like magic.

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

The post 1 investing strategy to grow your money like magic appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Levy owns Amazon. The Motley Fool owns and recommends Amazon. The Motley Fool has a disclosure policy.

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

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The S&P/ASX 200 Index (ASX: XJO) is enjoying a strong run today, up 1.18% at lunchtime.

And as the benchmark climbs, these 3 ASX 200 shares are breaking into new multi-year and even all-time highs.

We’ll kick off with a company that’s now trading for more than ever before since listing on the ASX way back in May 1994.

ASX 200 share hits all-time highs

The Computershare Ltd (ASX: CPU) share price is up 4.9% today, currently trading for $23.93 per share, a record high.

The financial services company operates the largest share registry business in the world.

And with today’s gains factored in, shares are now up 17.9% in 2022, and up 60.8% over the past 12 months.

One of the tailwinds helping the ASX 200 share recently is the outlook for rising interest rates, which will increase its margins.

At the current share price, Computershare has a market cap of $13.8 billion. The company pays a 2.1% dividend yield, 40% franked.

Also smashing multi-year highs…

The next of our ASX 200 shares breaking multi-year highs is explosives and agricultural chemicals company Incitec Pivot Ltd (ASX: IPL).

The Incitec share price is up 2.4% to $3.86 per share, its highest level since November 2018.

Incitec looks to have been benefiting from higher fertiliser prices as well as a strategic acquisition earlier this year in French-based explosives manufacturer Explinvest.

At the current share price, the company has a market cap of $7.5 billion. The company pays a trailing dividend yield of 2.5%, 14% franked.

ASX 200 share hits 12-year highs

The third of today’s ASX 200 shares leaping into multi-year highs is Sims Ltd (ASX: SGM).

The Sims share price is up 1.8% today to $2.13 cents per share. You have to go back all the way to December 2010 to find Sims trading at a higher level.

Sims, the world’s largest listed metal and electronics recycler, looks to be benefiting from increasing scrap metal prices amid soaring commodity prices across the globe.

Investors also rewarded the company after its very strong first half-year financial results.

Among the highlights, the ASX 200 share reported a 73.9% year-on-year increase in sales revenue, which reached $4.27 billion for the half.

At the current share price Sims has a market cap of $4.2 billion. The company pays a trailing dividend yield of 3.5%, 44% franked.

The post 3 ASX 200 shares smashing multi-year highs on Tuesday appeared first on The Motley Fool Australia.

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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 Ramsay Health Care Limited (ASX: RHC) share price is pushing higher on Tuesday.

In afternoon trade, the private hospital operator’s shares are up 2% to $64.60.

Despite this gain, the Ramsay share price is still down 10% since the start of the year.

Why is the Ramsay share price pushing higher?

Investors have bidding the Ramsay share price higher today after the healthcare giant responded to media speculation relating to its Asian operations.

According to the release, Ramsay and Sime Darby Holdings have received a confidential, conditional, non-binding, indicative proposal from IHH Healthcare Berhad to acquire 100% of their 50:50 joint venture in Asia, Ramsay Sime Darby Health Care Sdn.

The release notes that under the indicative proposal, the conditional indicative enterprise value for Ramsay Sime Darby is MYR5,670 million (or US$1.35 billion) on a cash free, debt free basis.

Though, the indicative proposal remains subject to conditions including the completion of satisfactory due diligence and the negotiation and finalisation of a sale and purchase agreement.

What now?

Ramsay and its joint venture partner appear to have seen value in the offer from IHH Healthcare Berhad.

The release reveals that after reviewing the proposal, both Ramsay and Sime Darby Holdings have agreed to a period of exclusivity for four weeks when due diligence commences to allow IHH Healthcare Berhad to conduct due diligence and negotiate a sale and purchase agreement.

Though, management warns that discussions between Ramsay, Sime Darby Holdings and IHH Healthcare Berhad are preliminary and no agreement has been reached in relation to the indicative proposal. As such, there is no guarantee that an agreement will be reached in respect of the proposal or that a transaction will eventuate.

The post Ramsay (ASX:RHC) share price pushes higher on US$1.35bn proposal for Asian JV appeared first on The Motley Fool Australia.

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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 Ramsay Health Care 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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Leading investor Jun Bei Liu from Tribeca Investment Partners has pointed to one S&P/ASX 200 Index (ASX: XJO) share that seems to be the cheapest it has been for five years. That ASX stock is SEEK Limited (ASX: SEK).

Jun Bei Liu wrote a piece for the Australian Financial Review that noted the market is now facing somewhat different concerns compared to the start of 2022. At the beginning of the year, there was much commentary surrounding the strength of inflation and how fast the US Federal Reserve would have to increase interest rates to react.

But now there is the concern of ‘stagflation’. What’s stagflation? Jun Bei Liu described it:

Stagflation refers to an unusual period of high inflation with low, or in extreme circumstances, negative economic growth. Many investors have never experienced such an environment. The most recent stagflation experience was back in the 1970s, where inflation rose to as much as 12%, mostly caused by the oil price spike.

It could lead to ‘real income’ declining and a destruction of demand. Real income is the income after taking into account inflation changes. If income rose 3%, but inflation was 4%, that would be a decline in real income.

How bad could stagflation become?

Jun Bei Liu said that if the combination of rising inflation, falling real incomes, and weakening demand became entrenched, it could escalate into a negative spiral that is hard to reverse.

So is this on the cards for Australia and ASX 200 shares?

At this stage, that fate doesn’t seem to be likely for Australia, according to the investment expert.

She pointed to several elements that could help the lucky country, including 5.5% GDP growth projected for Australia in 2022 and 2023. This would be stronger than the US and Europe. Australian households also have a reportedly high level of savings, providing a “nice buffer” for consumer spending.

Another benefit for Australia is that it exports a wide variety of commodities that are seeing high prices, such as energy, copper, and grain.

However, Jun Bei Liu expects inflation to pick up, with many ASX 200 companies talking of increasing prices. Tribeca is expecting Australia’s interest rate increases to be slow and steady.

SEEK named as an ASX 200 share opportunity

The Tribeca fund manager said that share markets have priced in a lot of the bearish sentiment.

Jun Bei Liu sees opportunities in quality companies that are predominately Australia-focused and are growing earnings in a “meaningful way”.

However, some of those ASX (200) shares are being sold off heavily as investors head for the exits.

She named SEEK as a pick. It’s the dominant business in the employment classifieds space. It achieved a high level of profit growth in the recent FY22 half-year result. Continuing operations net profit after tax (NPAT) rose 147% to $124.2 million, excluding significant items.

She said SEEK is expected to be on a double-digit growth trajectory over the next few years.

According to the investment expert, SEEK is now trading on its cheapest multiple for the past five years. The SEEK share price has risen 14% over the past month, but it’s still down by almost 10% in 2022.

For FY22, excluding significant items and the SEEK growth fund, NPAT is expected to be in the range of $230 million to $250 million, according to SEEK.

The post This quality ASX 200 share is trading on its ‘cheapest multiple for the past 5 years’ appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP and New Hope storm higher, Boral slumps
• This rare ASX share is growth, quality AND value: expert
• 5 things to watch on the ASX 200 on Tuesday
• How can investors in ASX shares hedge their portfolios amid uncertainty in 2022?
• The National Australia Bank (ASX:NAB) share price target upgraded by a top broker

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK 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 S&P/ASX 200 Index (ASX: XJO) is having a grand old time of it on the sharemarkets today. At the time of writing, the ASX 200 is up by a healthy 1.23% at just over 7,350 points. It seems ASX 200 investors largely have the BHP Group Ltd (ASX: BHP) share price to thank.

BHP shares are having a very strong day indeed today. The mining giant is currently up a healthy 4.74% at $48.65 a share. Since BHP is the largest share by market capitalisation in the ASX 200 Index, it is the share with the most impact on the ASX 200’s movements.

So why is the BHP share price having such a pleasing day of gains so far this Tuesday?

Well, it’s not entirely clear. There have been no major news or announcements released from the company itself recently. 

But a good guess would be what has been happening on the commodity markets over the past 24 hours. Commodities of almost all stripes have had a very pleasing day or two.

As my Fool colleague James covered this morning, oil has had an especially strong rally. WTI crude was up 7.3% overnight to over US$112 a barrel, while Brent crude shot even higher, rocketing by 7.7% to just over US$116 a barrel. Iron ore is also on the rise. According to Business Insider, iron ore is currently going for US$150.59 a tonne. That’s up from the US$144 levels we saw only a few days ago.

BHP has operations in both iron ore and oil, so these moves are obviously good news for the miner.

BHP shares shoot higher amid booming commodity prices

Another factor that might be affecting the BHP share price is the Australian dollar. The Aussie has spent the last week climbing against the US dollar. Well, until yesterday. The Aussie recently peaked at over 74 US cents a few days ago. But since then, it has come back to earth somewhat. At the time of writing, it is only asking 73.88 US cents.

Since BHP exports most of its commodities, a strong Aussie dollar means it will receive fewer Aussie dollars than it would if the currency was lower. So conversely, that means a falling Aussie dollar makes BHP’s exports more attractive.

So it could be a combination of these factors that are helping to push up the BHP share price so decisively today. We also see similar moves in BHP’s mining peers like Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG), albeit not quite as enthusiastic. Rio shares are currently up 3.4%, while Fortescue’s gains are closer to 1.5%.

Today’s rise means the BHP share price is now up 14.7% year to date in 2022 so far. At the current share price, BHP has a market capitalisation of $234 billion, with a dividend yield of 9.87%.

The post The BHP share price is up 5% today. What’s going on? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP and New Hope storm higher, Boral slumps
• Why has the BHP share price dropped 7% in 2 weeks?
• Is it too late to jump on surging ASX 200 mining shares in 2022?
• Are 2021’s monster dividends from ASX 200 mining shares sustainable in 2022?
• BHP shareholders set for $30 billion windfall: Macquarie

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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The Pure Hydrogen Corporation Ltd (ASX: PH2) share price is in the green this week.

Pure Hydrogen shares are currently swapping hands at 44 cents, up nearly 6% since the start of the week.

Let’s take a look at what’s been impacting the Pure Hydrogen share price since Monday?

New hydrogen deal

Pure Hydrogen is planning to work with a partner to trial Australia’s “first ever” hydrogen-fuelled garbage truck.

The company has signed a binding term sheet with waste collection provider JJ’s Waste & Recycling. Pure Hydrogen will supply the hydrogen-fuelled garbage truck, the hydrogen, and refuelling services.

Given JJ Waste has a fleet of 2,000 garbage trucks, Pure Hydrogen is hopeful it can transition more into hydrogen-fuelled vehicles if the trial is successful.

Pure Hydrogen described the supply of Hydrogen fuel cell-powered heavy commercial vehicles as a “game-changer” for the Australian trucking industry.

Commenting on the deal, Pure Hydrogen managing director Scott Brown said:

We believe this is the start of a new era for heavy commercial vehicles in Australia which will not only reduce and fix fuel costs but be cleaner and greener for the Australian environment. It will also reduce our reliance on imported diesel by replacing it with Hydrogen made in Australia.

We see the business case for converting garbage trucks to hydrogen fuel cell trucks as very compelling and we are confident this trial will be a great success.

The trial will take place on the Gold Coast in southeast Queensland and start at the end of this year.

Pure Hydrogen reported a loss of $807,571 in its half-year accounts, released last week. The company also increased its net cash balance by $2 million.

The company recently signed a binding collaboration with French technology company Plenesys to make turquoise hydrogen. This form of hydrogen is created using technology to convert methane into hydrogen and solid carbon.

Pure Hydrogen share price snapshot

The Pure Hydrogen share price has gained 53% in the past 12 months but dropped almost 21% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained around 9% in a year.

Pure Hydrogen has a market capitalisation of about $148 million based on the current share price.

The post Why is the Pure Hydrogen share price having such a stellar run this week? appeared first on The Motley Fool Australia.

More reading

• Why is the Pure Hydrogen (ASX:PH2) share price leaping 5% this week?

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 Riversgold Ltd (ASX: RGL) share price is off to the races today.

Riversgold closed yesterday at 3.6 cents and is currently trading for 4.7 cents. That puts the Riversgold share price up 30.6% in late morning trade.

ASX investors look to be snapping up shares in the junior explorer today after the company reported on its latest rock chip sampling results.

What assay results were announced?

The Riversgold share price is surging after the miner reported on high grade assay results for lithium. The results were strong across all the rock chip samples taken from surface sampling at its Tambourah Lithium Project in Western Australia.

The miner only acquired 4 lithium-prospective exploration tenement applications covering 164 square kilometres in the Pilbara region earlier in 2022.

According to the release, the assay results confirmed numerous lithium-bearing pegmatite dykes, with the rock chip samples returning values between 1.5% Li2O and 2% Li2O.

The Riversgold share price could also be getting an additional boost from the company reporting that so far, only 200 metres of what could be a 26 kilometre long mineralised corridor have been evaluated.

Commenting on the results, Riversgold CEO, Julian Ford said:

These initial rock chip results from Tambourah are highly encouraging and are only from a 200-metre section of what is potentially a 26-kilometre-long mineralised corridor within the tenement.

We are fortunate to have access to a substantial database of modern geophysical data for the Tambourah Project and our strategy is to fast-track exploration by leveraging this knowledge base and the easy access afforded by the gazetted Marble Bar road.

Ford added that he expects more material news to come as Riversgold pursues its lithium exploration strategies.

The miner is planning to kick off a follow up reconnaissance trip next week, where crews will explore along the strike extension and other priority target areas.

Riversgold share price snapshot

With today’s intraday gains factored in, the Riversgold share price is up 135% in 2022.

That compares to a 3.7% year-to-date loss posted by All Ordinaries Index (ASX: XAO).

The post This ASX gold miner just struck lithium, and its share price is surging 31% appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP and New Hope storm higher, Boral slumps
• Is the Macquarie (ASX:MQG) share price heading for $250?
• Where will Meta Platforms be in 3 years?
• Boral (ASX:BLD) share price hits 52-week low following guidance update
• Guess which ASX battery metals share has rocketed 100% in a week

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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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain thanks largely to the resources sector. The benchmark index is currently up 1.15% to 7,362.2 points.

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

BHP storms higher

The BHP Group Ltd (ASX: BHP) share price has played a key role in driving the ASX 200 higher on Tuesday. The Big Australian’s shares have stormed 5% higher today amid a strong night of trade for a number of commodities. This was particularly the case for oil prices, which jumped 7% overnight. And while the spot iron ore price has edged slightly lower, it remains above US$150 per tonne.

New Hope delivers strong profit and special dividend

The New Hope Corporation Limited (ASX: NHC) share price is racing higher today after the coal miner’s half year results impressed the market. New Hope reported a 153% increase in revenue to $1,025 million and a 582% jump in underlying EBITDA to $554.4 million. This allowed the New Hope board to increase its fully franked interim dividend by 325% to 17 cents per share and declare a fully franked 13 cents per share special dividend.

Boral slumps

The Boral Limited (ASX: BLD) share price is falling today after the building products company warned that heavy rain and rising fuel prices would impact its profits by ~$23 million. Boral now expects underlying earnings before interest and tax (EBIT) from continuing operations (excluding Property) in FY 2022 to be between $145 million and $155 million.

Best and worst ASX 200 performers

The best performer on the ASX 200 index on Tuesday has been the New Hope share price with a gain of almost 6%. This follows the release of its half year results. Going the other way, the worst performer has been the Atlas Arteria Group (ASX: ALX) share price with a 5% decline. This morning the toll road operator’s shares traded ex-dividend for its 20.5 cents per share final dividend.

The post ASX 200 (ASX:XJO) midday update: BHP and New Hope storm higher, Boral slumps appeared first on The Motley Fool Australia.

More reading

• Boral (ASX:BLD) share price hits 52-week low following guidance update
• New Hope (ASX:NHC) share price up 10% amid huge first half profits and special dividend
• This rare ASX share is growth, quality AND value: expert
• 5 things to watch on the ASX 200 on Tuesday
• How can investors in ASX shares hedge their portfolios amid uncertainty 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 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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One broker thinks that the Macquarie Group Ltd (ASX: MQG) share price has good potential to rise higher.

In March 2022, Macquarie shares have risen almost 10%. But the broker Morgan Stanley thinks that the global investment bank has upside potential of another 25% after upgrading the price target from $242 to $245.

Why is Morgan Stanley more bullish on the Macquarie share price?

According to reporting by The Australian, the cause of the upgrade was due to the EU energy price action and also due to the impacts on Macquarie’s primary US market.

Morgan Stanley increased the FY22 commodity revenue estimate by a further $400 million. However, Macquarie’s commodities and global markets (CGM) segment faces a potential $200 million of increased impairments because of the higher volatility and counter-party risk.

The commodity revenue is expected to decline by 20% in FY23 (after the elevated revenue in 2022), though there could be a longer-term revenue increase, suggesting it’s not just cyclical.

However, while higher commodities revenue is a positive, it’s possible that private markets may be soft, which could be detrimental to earnings in FY23, according to the broker.

What’s the latest on Macquarie’s FY22 so far?

In February 2022, Macquarie reported improved overall market conditions in the three months to December 2021, resulting in a record quarter for the group.

Macquarie said that the annuity-style businesses, Macquarie Asset Management (MAM), and banking and financial services (BFS) saw the combined quarterly net profit contribution fall year on year mainly due to the timing of performance fees and investment-related income.

However, the markets-facing businesses – CGM and Macquarie Capital – saw a combined quarterly net profit contribution “substantially” up thanks to higher principal income in Macquarie Capital with “exceptionally strong” investment realisations in the infrastructure (including green energy), business services and technology sectors.

Macquarie share price target and valuation

Morgan Stanley’s price target on Macquarie is $245.

The broker’s profit estimates put the current Macquarie share price at 17x FY22’s projected profit and 18x FY23’s estimated earnings.

Acquisition play in the works?

The Australian also reported on speculation that Macquarie Asset Management could be interested in bidding for telecommunications business Uniti Group Ltd (ASX: UWL). But, the newspaper reported the bid wouldn’t include Vocus, which Macquarie Asset Management and Aware Super own.

Uniti Group recently received a takeover approach from New Zealand outfit Morrison & Co.

The post Is the Macquarie (ASX:MQG) share price heading for $250? appeared first on The Motley Fool Australia.

More reading

• If you invested $10,000 in Macquarie (ASX:MQG) shares a decade ago, here’s what it would be worth now
• Why Macquarie (ASX:MQG) says US will become bank’s ‘biggest earning region’ in 2022
• Broker tips Macquarie (ASX:MQG) share price to rise 13%
• Is the ASX set to welcome yet another BNPL share? Macquarie-backed company gears up for IPO
• Is Macquarie (ASX:MQG) gearing up to ink its next big deal?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and 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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