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Shares in PointsBet Holdings Ltd (ASX: PBH) are on the move today after the company released its financial results for the half-year ended 31 December 2021.

At the time of writing, the PointsBet share price is 3.37% higher at $3.68 apiece. It initially spiked to $3.85 and then retraced its steps immediately towards yesterday’s close of $3.56.

PointsBet share price up despite EBITDA loss, as group net wins flourish

Key takeouts from the company’s earnings results today include:

• Net revenue for the period of $97.6 million, signifying 27% growth over the prior corresponding period (pcp)
• Statutory EBITDA loss of $130.6 million, a poorer result than the EBITDA loss of $71.3 million in the pcp
• Group net win of $146.7 million, representing 77% growth on the pcp
• Australian trading business had 232,875 Cash Active Clients, a 63% increase compared to the pcp
• US business had 211,113 Cash Active Clients, a 210% increase on the pcp
• Australian trading business recorded a net win of $107.9 million, representing 27% year on year growth
• US business recorded a sports betting net win of $31.3 million compared to a $2 million net loss in the pcp
• US business recorded an iGaming net win of $7.6 million
• Blended US online handle sports betting market share for Q2FY22 was 4.2%.

What else happened this period for PointsBet?

PointsBet surmounted several milestones in its growth narrative during this half, underscored by collaborations with the National Football League (NFL) in America and Major League Soccer (MLS).

Specifically, it has been selected by the NFL as an Approved Sportsbook Operator, starting with the 2021 season, and is also Austin FC’s exclusive sportsbook partner as of September last year.

PointsBet also became the new major partner of the Manly Sea Eagles NRL team here in Australia last year.

“The new exclusive multi-year sponsorship deal will see PointsBet take over the main front position on the Sea Eagles NRL jerseys for at least the next four years,” the company says.

In Australia, the company recognised revenue of $97 million after growth of 27% at the top. On this result, and others, the group recorded a net win of around $147 million for the period, a mammoth 77% leap from last year.

However, as a result of “significant investment into the US business”, PointsBet recorded a statutory EBITDA loss of $131 million this half – a stack behind last year’s loss of $71 million.

In other news, customer interest appears to have piqued for the company’s technology platforms. The company said “for Q2FY22, app download volumes grew by 121% versus Q2FY21” backed by its “improved product offering, user experience and brand equity”.

Management commentary

PointsBet noted that the business is focused on widening its footprint in the US after investing big here. The report said:

The Company continued to capitalise on its expanding US presence by scaling its operations through key hires across all departments, as well as rolling out sports betting and iGaming operations in to new states as well as preparing for future sports betting and iGaming operation launches.

Regarding one key partnership with the NFL, it said:

On 8 July 2021, PointsBet announced that NFL all-time great Drew Brees officially joined the PointsBet team. Brees, who this season is transitioning to a broadcasting career with NBC Sports (PointsBet’s official sports betting partner) will deepen the NBC Sports and PointsBet relationship as the Company continues to expand and realise the growing North American online sports betting and iGaming opportunity in 2021 and beyond. Brees will star in and help develop original content for PointsBet, provide sports betting education and commentary, host events, and steer marketing and promotional concepts, among other areas.

What’s next for PointsBet?

The company also says it has garnered “positive momentum” by reducing its expenditure. As such, it anticipates marketing expenses to reduce down to roughly $16 million for H2FY22.

As a result, it expects the Australian trading business to be EBITDA positive for FY22. PointsBet also expects iGaming launches in Pennsylvania and Ontario during H2FY22.

PointsBet share price snapshot

In the last 12 months, the PointsBet share price has collapsed by 76%. It is down 48% this year to date, and is thus trailing the S&P/ASX All Ordinaries Index (ASX: XAO), which is down 8%.

The post PointsBet (ASX:PBH) share price rising despite $131 million EBITDA loss appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 Block Inc CDI (ASX: SQ2) share price is heading skywards, up 39% in early trade.

Block closed yesterday trading for $116.05 per share and is currently trading for $161.67.

Below we look at the highlights from the global payment services company’s Q4 and full year financial results for the period ending 31 December (FY21).

Block share price rockets on soaring profits

• Gross FY21 profit of $4.42 billion, up 62% year-on-year year
• Total net revenue – including Bitcoin (CRYPTO: BTC) – of $17.66 billion, up 86% from FY20
• Adjusted earning before interest, taxes, depreciation and amortisation (EBITDA) increased 114% year-on-year to $1.01 billion
• Net FY21 income of $166 million

What else happened during the year?

The strong full year results propelling the Block share price skywards today were helped by a 47% year-on-year boost in Q4 profits, which reached $1.18 billion.

That came despite a 63% year-on-year lift in operating expenses in Q4, which climbed to $1.24 billion.

Block also reported that its transaction-based revenue in Q4 came in at $1.31 billion, up 41% from the prior corresponding period. Subscription and services-based revenue leapt to $772 million in Q4, up 72% year-on-year.

Block is also an active investor in Bitcoin. In Q4 of 2020 and Q1 of 2021, the company invested $220 million into the cryptocurrency. As at 31 December it said the fair value of that investment was $371 million.

As at 31 December, Block had $7.4 billion in available liquidity.

What did management say?

Authoring the report, Block CEO Jack Dorsey noted:

On January 31, we completed our acquisition of Afterpay, a global buy now, pay later (BNPL) platform. We believe this acquisition will further Block’s strategic priorities for Square and Cash App by strengthening the connections between our ecosystems as we deliver compelling financial products and services for consumers and merchants.

What’s next?

Looking ahead to what could impact the Block share price next, the company said it remains focused on its international strategy of “achieving product parity globally, investing further into brand awareness, and launching in new markets”. In January, Block entered into Spain, its fourth European country.

Afterpay will be included in Block’s Q1 results for February and March 2022.

Block share price snapshot

Block began trading on the ASX in January following its acquisition of Afterpay.

Since 20 January, the Block share price is down 9%. By comparison, the S&P/ASX 200 Index (ASX: XJO) has lost 8% over that same time.

The post Block (ASX:SQ2) share price rockets 39% today as profits soar appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Block, Inc. The Motley Fool Australia owns and has recommended Bitcoin and Block, Inc. 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 market is bidding the Playside Studios Ltd (ASX: PLY) share price higher after the company released its half-year earnings.

At the time of writing, the Playside share price is 93 cents — a 5.68% gain on Thursday’s closing price.

Playside share price takes off as losses recover

Highlights of the video game developer’s results for the first half of financial year 2022 include:

• Revenue of $9.4 million – an 87% increase on that of the first half of financial year 2021
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of around $150,000 – up from the prior corresponding period’s loss of $1.6 million
• Posted an after-tax loss of $444,000 – an improvement on the prior period’s $2.05 million loss
• Earnings per share (EPS) came to a loss of 12 cents – a better result than the previous loss of 74 cents

Over the first half of financial year 2022, Playside’s revenue split leaned further towards its original intellectual property (IP) segment.

Some 64% – around $6 million – of the company’s revenue was generated through its own IP, up from 59% in the prior comparable period.

The increase was mainly due to its Age of Darkness: Final Stand, Battle Simulator, and Animal Warfare titles.

The remaining 36% – or $3.4 million – was generated through work for hire business.

That was boosted by contracts with 2K Games, Meta Platforms Inc (NASDAQ: FB), and Shiba Inu Games (CRYPTO: SHIB).

The company ended the period with $33 million in cash and equivalents.

What else happened in the half?

The last half was a busy one for Playside and its share price.

The company announced its acquisition of the Dumb Ways to Die franchise for $2.25 million. Since then, it’s undergone an NFT project, BEANS, under the franchise’s name, which brought in $8.38 million in January.

It also underwent a capital raise, whereby it raised $25 million in a private placement and another $3 million through a share purchase plan.

It offered its shares for 75 cents apiece within the raises.

The Playside share price gained 323% between 30 June and 31 December 2021.

What’s next?

Playside is currently developing several games to be launched during the second half and beyond.

Its Legally Blonde game will launch in the final quarter of this financial year, while its Age of Darkness: Final Stand will launch in the first quarter of financial year 2023.

The Godfather and World Boss will undergo soft launches in the third and fourth quarter of this financial year respectively.

Additionally, the company is in talks with multiple Hollywood movie studios for the rights to other licences.

It’s also developing 3 new titles under the Dumb Ways to Die franchise and is in discussions with streaming providers and toy manufacturers to expand the brand.

Playside share price snapshot

Today’s gains haven’t been enough to boost the Playside share price back into the year-to-date green.

It is currently still 23% lower than it was at the start of this year. Though, it’s 110% higher than it was this time last year.

The post Playside (ASX:PLY) share price launches 6% on surging half-year revenue appeared first on The Motley Fool Australia.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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 Lynas Rare Earths Ltd (ASX: LYC) share price is rallying this morning after the ASX miner posted a sharp rise in revenue and profit for the six months ending December 2021.

Shares in Australia’s largest rare earths miner are 3.58% higher at $9.27 in early trade following the release of the results.

Lynas share price bolstered by record first half profit

Highlights from Lynas’ first-half FY22 results include:

• Net profit after tax (NPAT): A$156.9m (1H 21: A$40.6m)
• Revenue: A$314.8m (1H 21: A$202.5m)
• EBIT: A$161.9m (1H 21: A$46.1m)
• EBITDA: A$189.8m (1H 21: A$80.6m)
• Cost of sales: A$140.3m (1H 21: A$150.8m)
• Closing cash and short term deposits: A$674.2m (1H 21: A$512.6m).

Part of the green metals boom

Lynas is benefitting from the global electric vehicle revolution that is powering our lithium miners like Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS).

One of the commodities Lynas produces is Neodymium-Praseodymium (NdPr), or magnets used in motors.

As with the skyrocketing price of lithium, NdPr prices are also booming and have jumped to over US$100/kg. This is its highest in 11 years.

Another factor that may be bolstering the Lynas share price today is its cost control. Most miners, including Rio Tinto Limited (ASX: RIO), are complaining about inflationary pressure. But attentive investors will be pleased that Lynas’ cost of sales fell during the period versus 1H 21.

Growth projects

Lynas continues to invest in building the business under its Lynas 2025 Strategy. Its Mt Weld resource is part of its growth plan and it is expecting to accelerate investment in this project.

The miner said that Mining Campaign 4-1 commenced and the resource extension drilling program was completed towards the end of 2021.

Lynas is also making progress on the Kalgoorlie Rare Earths Processing Facility. All necessary approvals have been secured for the processing facility and Lynas is stepping up construction activities.

Another pleasing development is the environmental approval for its Malaysian plant in December 2021. This has been a key risk factor that was hanging over the Lynas share price for a while.

Commentary from management

Speaking on the results driving the Lynas share price today, Managing Director, Amanda Lacaze, commented:

Our team remains highly focused on delivering results, whilst managing the ongoing challenges of the pandemic.

Pleasingly, a number of Lynas 2025 growth project milestones were achieved during the half year and subsequently which will provide a strong foundation to meet accelerating demand growth.

Our customers expect demand will grow strongly as we move further into FY22, and we are positioning the business to meet accelerating demand through our Lynas 2025 growth projects.

Lynas share price snapshot

The Lynas share price has surged by 64% over the past 12 months. However, it’s lost around 16% since the start of the calendar year.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has only managed to gain a modest 2.6% over the past year.

The post Lynas (ASX:LYC) share price jumps amid record interim net profit appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns Lynas Corporation Limited, Allkem Ltd, and Rio Tinto Ltd. 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 BWX Ltd (ASX: BWX) are on deep in the red today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, the BWX share price is trading down 25.82% at $2.50 apiece after releasing its earnings.

BWX share price plunges amid revenue growth, profit slide

Key takeouts from the company’s earnings results today include:

• Strong Group underlying revenue growth of 26.5% and EBITDA growth of 26.2% year on year (YoY)
• Statutory revenue of $103.4 million and Statutory net loss after tax (NLAT) of $2.3 million
• Completion of Flora & Fauna acquisition in 1Q22 and Go-To Skincare in 2Q22
• Integration and synergies on target; three-year growth strategy established for Go-To Skincare
• Core brand margin improved 334 basis points YoY to 58.5%
• Group gross margin up 206 basis points YoY to 55.7%
• Global points of distribution at 1.6 million and on track to achieve 2 million target by end FY22
• Clayton Facility supporting a step change in operational and financial performance, targeting 300 basis point margin accretion from FY23
• Solid balance sheet supporting reinvestment for longer-term growth
• Strong underlying revenue and EBITDA expected for FY22

What else happened this half for BWX?

The company’s results were hallmarked by YoY growth in underlying revenue and EBITDA during its first half. BWX says this was driven by “core brand and acquisition-led growth across Australia/International and USA segments”.

Specifically, underlying revenue came in at $107 million, a 26.5% increase on the same time last year. This result was underlined by “three- and six-month contributions from the acquisitions of Go-To Skincare (Go-To) and Flora & Fauna respectively”.

Underlying NPAT was $4.7 million, up 22.1% on the prior period. However, including all assessable income, the company actually recorded a net loss after tax of $2.3 million.

BWX says the drop in after tax profit was attributable to one-off items that aren’t likely to be seen in its P&L again.

“The decline was driven by the one-off impact of a $5.8 million benefit in 1H21 from settlement of the Egide Compensation Plan to the sellers of the Andalou Naturals business, and costs in 1H22 including one-off acquisition charges of $3.0 million and $3.5 million Chemist Warehouse cost of equity-linked strategic partnership expense”, it noted.

Nevertheless, the group’s core margins lifted by over 300 basis points to 58.5% which thrust gross margins 200 basis points higher to 55.7%. The result stemmed from efficiency gains in procurement and sourcing, BWX claims.

Management commentary

Speaking on the group’s result, current BWX CEO and Managing Director, Dave Fenlon said:

During 1H22, the Group delivered strong underlying growth despite a heavily impacted first quarter which saw approximately 7% of our total distribution points forced to close in line with Government responses to COVID outbreaks across key regions. The second quarter reflected stronger sales momentum which is continuing to accelerate and – coupled with a strong performance in our USA segment – demonstrates a broader retail-led recovery as consumers return to socialising and instore shopping.

What’s next for BWX?

According to the release, BWX anticipates “strong underlying revenue and EBITDA growth in FY22” with the bolus of upside to be realised at the back end of FY22.

“This outlook is supported by sales momentum in 2Q22, which is continuing into 3Q22”, it says, although no formal numbers were given.

Finalising the group’s remarks, incoming BWX CEO and Managing Director, Rory Gration concluded:

January retail performance has maintained the strong momentum seen in the second quarter, which is encouraging. While the environment remains uncertain, our strategic priorities are simple and we will continue to execute through the unlocking of acquisition-led and organic brand growth and increasing our points of distribution.

BWX share price snapshot

In the last 12 months, the BWX share price has collapsed into the red by 38% and is down a further 43% this year to date.

More pain in the last month has meant BWX has shot down by 31% after collapsing around 28% this week.

The post BWX (ASX:BWX) share price plunges 26% after posting after-tax loss in 1H FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BWX 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 Lovisa Holdings Ltd (ASX: LOV) share price is climbing again this morning after rocketing on Thursday. Yesterday’s surge came on the back of the company’s impressive FY22 first-half results, in which it also declared a monster dividend for shareholders.

The fashion jewellery retailer’s shares surged to an intraday high of $21.25 on Thursday, before settling back to $18.50, up 11.78% at market close. This morning, its shares are up 6.05% to $19.62 at the time of writing.

Late last year, the Lovisa share price hit an all-time high of $23.07 after the company received a positive broker upgrade.

Below we take a look at Lovisa’s latest financial performance and its huge interim dividend for investors.

What’s the deal with the Lovisa dividend?

In the half-year report for the 2022 financial year, Lovisa reported double-digit growth across key metrics.

In summary, revenue increased by 48.3% to $217.8 million over the previous corresponding period. 

Despite being impacted during the first quarter by temporary store closures across a number of markets, comparable store sales momentum continued. This resulted in equivalent store sales up 21.5% on H1 FY21, with 42 new stores opened during the period.

Overall, net profit after tax (NPAT) rose to $36.7 million, a lift of 70.3% compared to $21.5 million in the prior year.

Based on Lovisa’s robust performance, the board declared a 30% franked interim dividend of 37 cents per share. This represents an 85% increase from the 20 cents declared in the prior comparable period.

Management noted that the latest dividend reflects the strong cash outcome and balance sheet position for the first half.

Lovisa ended the calendar year with $52.7 million of net cash and no debt.

When can Lovisa shareholders expect payment?

While it’s a number of weeks away, Lovisa will pay the interim dividend to eligible shareholders on 21 April.

However, to be eligible, you’ll need to own Lovisa shares before the ex-dividend date which falls on Tuesday 8 March. This means if you want to secure the dividend, you will need to purchase Lovisa shares by Monday 7 March at the latest.

It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.

And, in case you are wondering, the company is not offering a dividend reinvestment plan (DRP) to shareholders.

The post The Lovisa (ASX:LOV) dividend jumped 85%. Here’s what you need to know appeared first on The Motley Fool Australia.

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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 recommended Lovisa Holdings 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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As Russian troops stamp in uninvited to another sovereign nation, the thoughts of Australians are with the people of Ukraine.

The current generation has lived in relatively peaceful times as far as nation-to-nation invasions go, so this development is distressing.

As I write this article, the Russian military is expected to take over the Ukrainian capital Kyiv in a matter of hours.

While acknowledging the horrible human toll of what’s happening in eastern Europe, experts have been calculating what impact war could have on stock investments.

Their opinions could surprise you.

Shares are historically resilient

Montgomery Investment Management chief investment officer Roger Montgomery is horrified by the developments in Ukraine.

“I detest armed conflict,” he posted on the Montgomery blog.

“War should be avoided at all times and not prompted by immature despots, seeking acclaim they can only take to their grave.”

However, analysing past military conflicts show they didn’t wreak permanent damage to stock portfolios.

“Investors would be wise not to sell into the fear and weakness but instead, remember that there have been dozens, if not hundreds, of conflicts in the past and the stock market has survived,” said Montgomery.

“This of course is not to diminish the very real suffering at the hands of tyrants and dictators, which democratic allies should pull all stops to prevent.”

Montgomery recalled the outbreak of World War I when the NYSE was shut down on 1 August 1914 to prevent a liquidity calamity.

The exchange ended up, incredibly, closed for 4 months.

“It must have seemed grim for stock market investors, especially for anyone with capital tied up and locked down,” said Montgomery.

“After the stock market reopened in 1915, however, the Dow Jones Industrial Average (INDEXDJX: .DJI) rose more than 88%.”

In fact, 1915 ended up boasting the highest annual return for the Dow.

“From the start of World War I in 1914, until its end in 1918, the Dow Jones rose 43%, or about 8.7% annually.”

Even the most catastrophic global events and stock losses can be recovered rapidly, according to Ritholtz Wealth Management director Ben Carlson.

“From the start of World War II in 1939 until it ended in late 1945, the Dow was up a total of 50%, more than 7% per year,” he said. 

“The relationship between geopolitical crises and market outcomes isn’t as simple as it seems.”

Remember, investing is for the long term

Switzer Financial founder Peter Switzer is reminding his clients that investing is for the long haul.

“They’re supposed to be patient long-term investors aiming for average returns of 7% or 8% a year over a decade,” he wrote on SwitzerDaily.

“A good portfolio can do that, despite the fact some years they could fall by 15% or even 20%… Then they can boom by 22% in a year, which was the case for lots of our clients after the coronavirus crash of the stock market resulted in a big rebound for stocks.”

Knowing that historically a rebound is to follow, Montgomery suggested investors to buy during uncomfortable times.

“It has, indeed, been wise, historically, to invest at the depths of the conflict when fear was at its extreme.”

The post What happens to stock markets when war breaks out? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Woolworths Group Ltd (ASX: WOW) share price has fallen 6.1% this year, hitting a 52-week low of $33.45 in late January.

At Thursday’s market close, Woolworths shares finished the day up 0.03% to $35.69.

The S&P/ASX 200 Index (ASX: XJO) has also shed 6.1% over the same time frame. Inflationary issues with incoming rate hikes and geopolitical tensions between Russia and Ukraine have likely contributed to the downfall.

Nonetheless, Woolworths released its half-year results for FY22 on Wednesday, with its share price pushing higher despite a softened performance.

Below we consider if it’s worth investing in the retail conglomerate’s shares for its latest interim dividend.

Woolworths recent dividend history

Since this time last year, Woolworths has paid total dividends to shareholders of $1.08 per share. This consists of FY21’s interim dividend of 53 cents per share and the final dividend of 55 cents per share.

Based on the current Woolworths share price, this translates to a dividend yield of around 3.23%. And this doesn’t include that all its dividends are fully franked which is an added bonus in offsetting future tax liabilities.

What about Woolworths’ latest interim dividend?

While Woolworths reported its results for the front-end of FY22, the board declared an interim dividend of 39 cents per share. Albeit, a reduction of 26.4% when compared to the prior corresponding period. This is scheduled to be paid to shareholders on 13 April. However, you must own Woolworths shares before the ex-dividend date on 3 March to be eligible for the dividend.

On a positive note, management noted that, in total, $3.2 billion is set to be returned to shareholders in FY22. This comprises $1.17 billion in dividend payments and the $2 billion off-market share buyback program completed in October 2021.

How is the Woolworths share price valued?

After the company delivered its half-year results to the ASX, a number of brokers weighed in on the Woolworths share price.

Analysts at Citi upgraded their view to “buy” from “neutral” with a 12-month price target of $40.30, up 3.3%. Based on the current share price, this implies a potential upside of almost 13%.

In addition, Jefferies also lifted its outlook on Woolworths to “buy” from “hold”, signalling a similar price of $40.00 per share, up 8.1%.

Macquarie, on the other hand, had a more bearish tone, reducing its rating by 4.5% to $38.20.

And lastly, Swiss investment firm, UBS slashed its rating by 2.9% to $34.00. This implies a 4.8% downside on the current Woolworths share price.

The post Should you buy Woolworths (ASX:WOW) shares now for the dividend yield? appeared first on The Motley Fool Australia.

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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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If you’re interested in gaining exposure to the mining sector, then the two ASX 200 shares listed below could be worth considering.

Here’s why analysts are positive on them right now:

Iluka Resources Limited (ASX: ILU)

The first ASX 200 mining share to consider is this mineral sands company. Goldman believes it could be a top option for investors due to the favourable outlook for mineral sands and its exposure to rare earths.

The broker recently explained: “We are Buy rated on mineral sands/rare earth producer ILU and add the company to our Conviction List (CL) on attractive valuation and compelling Zircon and TiO2 price upside and Rare Earth growth potential.”

“ILU is trading at a >50% discount to RE peers and >10% discount to min sands/pigment peers on an EV/EBITDA basis. Iluka recently released a larger-than-expected maiden resource on the Wimmera rare earth (RE) & zircon deposits in Victoria containing over c.1Mt of rare earth oxides (REO) and 10.6Mt of zircon. The Wimmera deposit is an important part of ILU’s rare earth growth strategy,” Goldman added.

Goldman Sachs has a conviction buy rating and $12.50 price target on Iluka’s shares.

South32 Ltd (ASX: S32)

Another ASX mining share that could be in the buy zone is South32. The team at Morgans is positive on the diversified miner.

In response to its half year results, its analysts commented: “The diversified miner is enjoying robust prices across its basket of metals, allowing it to increase its dividend, upsize its buyback and strengthen its balance sheet.”

“We see S32 as a key ex-iron ore / ex-WA mining exposure in Australia, offering investors diversified base metals exposure at an attractive multiple. [..] While ‘late to the party’, we expect S32’s share price to continue to re-rate as it completes its accretive copper acquisition and continues to enjoy cycle high FCF. We maintain our Add rating with S32 a preferred exposure in the mining sector,” it added.

The broker currently has an add rating and $4.90 price target on its shares.

The post Brokers name 2 ASX 200 mining shares to buy appeared first on The Motley Fool Australia.

More reading

• Iluka Resources (ASX:ILU) share price slips despite ‘excellent’ full-year results
• South32 (ASX:S32) share price up following completion of ‘major milestone’ copper acquisition
• These 3 ASX 200 shares are topping the volume charts on Tuesday
• Banking on the South32 (ASX:S32) dividend? Here’s what you need to know
• Why has the South32 (ASX:S32) share price rocketed 60% in 6 months?

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 Appen Ltd (ASX: APX) share price was sold off on Thursday following the release of the artificial intelligence data services company’s full year results.

The company’s shares ended the day a massive 29% lower at $6.11.

This means the Appen share price is now down a very disappointing 70% from its 52-week high.

Is the Appen share price weakness a buying opportunity?

The team at Bell Potter has been running the rule over Appen’s results and has given its verdict on its shares.

Unfortunately for any investors thinking that the Appen share price could now be an absolute bargain buy, its analysts aren’t convinced and are suggesting that investors keep their powder dry for the time being.

According to the note, Bell Potter has retained its hold rating and slashed its price target by 41% to $6.75.

What did the broker say?

Bell Potter notes that Appen’s full year results fell short of expectations.

It said: “Underlying EBITDA of US$77.7m was 4% below our forecast and the low end of the US$81-88m guidance range (which Appen had previously guided to). The miss was driven by both lower revenue than forecast (US$447.3m vs BP US$455.1m) and EBITDA margin (17.4% vs BP 17.8%). Operating cash flow was down 17% to US$53.9m and the cash conversion rate decreased from 103% to 77%. The final dividend of A5.5c 50% franked, however, was in line with our forecast.”

The broker also points out that Appen is not providing guidance for FY 2022 but has provided longer term targets. And while the latter has led to Bell Potter increasing its revenue forecasts slightly, it has taken a hammer to its earnings estimates due to weaker margins.

Bell Potter explained: “We have upgraded our revenue forecasts by 2% and 5% in 2022 and 2023. Our forecast revenue growth is now in the low double digit percentages which is below the mid teens growth required to double revenue by 2026. We have, however, downgraded our underlying EBITDA forecasts by 13% and 14% in 2022 and 2023 due to reductions in our margin forecasts to around 16% in both periods.”

The post Is the Appen (ASX:APX) share price meltdown a buying opportunity? appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss
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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. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen 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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