Tag: Motley Fool

The Netwealth Group Ltd (ASX: NWL) share price is on a bit of a rollercoaster today.

Shares in the S&P/ASX 200 Index (ASX: XJO) investment platform provider were up 2.5% in early trade on Monday. In later morning trade, shares have given up those gains.

After dipping into the red, the Netwealth share price is up 0.6%, at $17.48 at the time of writing.

For some context, the ASX 200 is up 0.2% at this same time.

This follows the release of Netwealth’s quarterly update for the three months ending 31 December.

Read on for the highlights.

ASX 200 investors gauging record funds increase

The Netwealth share price is in the green after the company reported a $6.0 billion increase in its funds under administration (FUA) over the quarter. That’s 25% higher than the prior corresponding period.

As at 31 December, Netwealth reported FUA of $78.0 billion.

The three-month increase consisted of FUA net inflows of $2.6 billion and “positive market movement” of $3.4 billion.

The Netwealth share price was a strong performer in 2023, fuelled by record 12-month FUA inflows of $19.7 billion.

In other key metrics, the company’s funds under management (FUM) increased by $1.6 billion for the quarter. Netwealth saw FUM net inflows of $700 million over the three months.

The company’s Managed Account balance also saw a big boost, up $1.3 billion for the quarter to $15.5 billion.

And member accounts grew by 3,254 to reach 132,826 accounts as at 31 December.

Commenting on the improved performance, management said:

In recent quarters, we have reported elevated outflows which were, in part, due to clients investing in term deposits and fixed interest products off platform. To improve the client experience and retention of assets on the platform, we delivered a number of initiatives including new functionality and an increased range of fixed income products.

These initiatives (when combined with stronger equity markets), appear to have been effective, with FUA outflows beginning to decrease and the December month being the lowest since February.

Looking ahead, Netwealth reported it is seeing increased demand from clients for environmental, social and corporate governance (ESG) and responsible options.

The company also noted it was actively exploring tapping into the rapid rise of generative AI to “improve efficiency, productivity, client engagement and service”.

Netwealth share price snapshot

The Netwealth share price has gained 32% over the past 12 months.

ASX 200 investors who bought shares on 26 October will be sitting on gains of 40%.

The post Up 40% since October, Netwealth share price reacts to record $6 billion increase appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These ASX 200 shares just hit new 52-week highs
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/nAhWqVZ

If you own shares of Telstra Group Ltd (ASX: TLS), chances are you haven’t seen much in the way of pleasing share price gains for a while.

Between October 2020 and May 2022, the Telstra share price was able to put on an impressive 60% or so, rising from around $2.80 a share to the (still-reigning) 52-week high of $4.46 that we saw eight months ago.

But ever since then, Telstra shares have stagnated. Today, the telco has opened the trading week with a 0.38% loss, which leaves Telstra shares at $3.98 each. That’s a good 10.8% or so lower than that 52-week high of $4.46.

Of course, Telstra’s famous dividends have comforted investors over this period. The company is currently trading with a fully-franked dividend yield of 4.25% – certainly nothing to turn one’s nose up at. But it has still been a fairly lacklustre few months for Telstra investors.

ASX broker calls 18% upside for Telstra shares

However, Telstra might not be staying at these kinds of levels for long if one ASX broker is to be believed.

Earlier this month, my Fool colleague covered the views of ASX broker Goldman Sachs on Telstra. Goldman reiterated its bullish position on the ASX 200 telco, giving Telstra shares a buy rating.

That buy rating came alongside a 12-month share price target of $4.70. If realised, this would see Telstra shares gain 18.1% from the $3.98 share price we see today.

That’s obviously a fairly enthusiastic share price target. Goldman stated that it stems from the broker’s belief that “low risk earnings (and dividend) growth that Telstra is delivering across FY22-25” will be attractive to investors.

On that dividend growth, Goldman is pencilling in 18 cents per share in fully franked dividend for the 2024 financial year, rising to 19 cents per share for FY2025.

No doubt this will be music to Telstra investors’ ears. The telco has long been prized for its robust and generous dividends – particularly since Telstra was able to maintain its shareholder income throughout the pandemic.

News that investors could be enjoying a fully-franked 4.77% yield (based on today’s share price) by FY2025 is certainly exciting. But we’ll have to wait and see whether Goldman’s share price target and dividend projections indeed prove accurate this time next year.

The post Own Telstra shares? You could be on track for an 18% gain in 2024 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 world-class ASX retirement shares to buy now
• Retirees: 2 Top ASX dividend shares I’d buy now for passive income in 2024
• Brokers name 3 ASX dividend shares to buy now
• How I’d build a backup superannuation fund with $10,000 and 5 ASX shares
• The pros and cons of buying Telstra shares right now

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/rgLO5di

With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Beach Energy Ltd (ASX: BPT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this energy producer’s shares with a trimmed price target of $1.90. This follows the release of a quarterly update which fell short on production but beat on sales volumes. Bell Potter remains very positive on the company due to its favourable view on the Australian east coast gas and LNG markets and its strong earnings growth outlook. The Beach Energy share price is trading at $1.63 today.

Paladin Energy Ltd (ASX: PDN)

A note out of Citi reveals that its analysts have upgraded this uranium producer’s shares to a buy rating with an improved price target of $1.45. The broker made the move in response to the company’s quarterly update and higher uranium price assumptions. It has lifted the latter to reflect ongoing mine development issues in Africa and Kazakhstan. The Paladin Energy share price is fetching $1.21 on Monday.

ResMed Inc (ASX: RMD)

Analysts at Goldman Sachs have reiterated their buy rating on this sleep treatment company’s shares with an improved price target of $33.50. The broker was impressed with ResMed’s quarterly update and remains very bullish on its outlook. In light of this, its continues to see asymmetric upside risk at current valuations. The ResMed share price is currently trading at $28.58.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why it isn’t too late to buy ResMed shares
• 5 things to watch on the ASX 200 on Monday
• Here’s how I’m targeting a generous ASX passive income in retirement!
• Here are the top 10 ASX 200 shares today
• Up 124% and 52% in a year, why are these 2 ASX 200 uranium shares gaining again today?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/uVaq8eX

The Calix Ltd (ASX: CXL) share price is having a day to forget on Monday.

In morning trade, the ASX All Ords share was down as much as 30% to a 52-week low of $1.65.

The environmental technology company’s shares have recovered slightly since then but remain down by 26% at the time of writing.

Why is this ASX All Ords share crashing?

Investors have been rushing to the exits this morning after the company announced that the Leilac-2 project will move to another Heidelberg Materials’ site following a decision by Heidelberg Materials to end clinker production at its Hanover cement plant.

The release notes that Heidelberg Materials has attributed the decision to shut down clinker production in Hanover to a “substantial decline in cement sales following weak construction demand in Germany due to the current economic environment.”

Calix and its subsidiary, Leilac, are currently working with Heidelberg Materials to identify a suitable new site for the project as soon as possible.

This is a bitter blow for the ASX All Ords share. It notes that Leilac-2 is well advanced and was on track for construction in 2024.

Leilac-2 has a modular design that aims to demonstrate an efficient, economic and scalable solution for the cement and lime industries to capture their unavoidable process emissions and provide flexible and future-proof fuel optionality.

The ASX All Ords share’s managing director and CEO, Phil Hodgson, said:

Current macro-economic environment realities have resulted in what is undoubtedly a difficult decision for Heidelberg Materials, and our thoughts and best wishes are with those whose jobs will be impacted by this decision.

We will work closely with Heidelberg Materials and our Leilac Consortium partners on the relocation options. Once chosen, we would expect around six months additional engineering work associated with site integration specifics. The Leilac-2 module is basically ready-to-build, with long lead items already being procured, and we look forward to continuing to work with Heidelberg Materials and our Leilac consortium partners to bring the Leilac-2 project to a successful conclusion.

The post Why is this ASX All Ords share plunging 30% on Monday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX 200 uranium stock was just downgraded
• Building wealth in your 30s? I’d buy these ASX shares
• BHP share price tumbles amid reported $14.8 billion Brazil dam disaster hit
• Why this leading broker is tipping Mineral Resources shares to jump 25%
• Bell Potter says these ASX dividend shares are top buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/JN4C68t

Boss Energy Ltd (ASX: BOE) shares are having a tough start to the week.

In morning trade, the ASX 200 uranium stock is down over 5% to $5.28.

Why is this ASX 200 uranium stock sinking?

The catalyst for the weakness in the Boss Energy share price on Monday has been the release of a broker note out of Bell Potter.

According to the note, the broker believes the risk/reward on offer from its shares at present is no longer sufficient to recommend it as a buy.

As a result, this morning, the broker has downgraded the ASX 200 uranium stock to a speculative hold rating with an improved price target of $6.41 (from $5.69).

The good news for investors is that today’s decline means that this price target still implies potential upside of approximately 21% for its shares.

Commenting on the downgrade, the broker said:

We upgrade our valuation to $6.41/sh (previously $5.69/sh) on changes to our price outlook, and downgrade BOE to Speculative Hold (from speculative Buy) as the stock has out-performed peers. Uranium fundamentals continue to support our thesis being 1) advancement in Nuclear energy across the globe (60 reactors currently under construction) filtering through to a growing demand for U3O8 and 2) a lack of near-term supply as producers exited the market post Fukushima. The recent acquisition of a 30% interest in the Alta Mesa joint venture, diversifies BOE’s operations and revenue streams, making BOE one of only two geographically diversified uranium producers in CY24.

Bell Potter is now expecting the mid-term uranium price to reach a peak of US$130 per pound. Though, that could yet change depending on “the potential downgrades in production from Kazatomprom and the ripple effects on-market purchases will have to the spot price.”

Boss Energy shares are up 100% over the last 12 months.

The post Guess which ASX 200 uranium stock was just downgraded appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Up 124% and 52% in a year, why are these 2 ASX 200 uranium shares gaining again today?
• Why Boss Energy, Cooper Energy, Judo Capital, and Polynovo shares are racing higher
• If I’d invested $20,000 in Boss Energy shares one month ago here’s what I’d have today
• Would I be crazy to buy Boss Energy shares at $5.50?
• Here are the top 10 ASX 200 shares 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/eBqN3s5

In your 30s and looking to build wealth with ASX shares? It’s a great age to start investing because there are still many years ahead of working and time for compounding.

If someone is 35 and is thinking about retiring at 65, that’s 30 years of possible compounding. How much growth could happen in that time?

The share market has made an average return per annum of 10% over the ultra-long-term. If $10,000 grew at 10% per year for 30 years, it would become $174,000. Of course, the share market could do worse (or better) than that in the future.

People in their 30s may be earning a bit more than in their 20s, allowing them to set aside some cash to invest. Of course, people of other ages can also save and invest.

I think the two ASX shares in this article could be top picks for long-term growth.

Global X Fang+ ETF (ASX: FANG)

This exchange-traded fund (ETF) helps us invest in some of the largest, strongest and most compelling businesses in the world.

It’s quite similar to the Betashares Nasdaq 100 ETF (ASX: NDQ) – both ETFs are focused on the large US tech companies.

But, the FANG ETF is only invested in 10 businesses. These are the names (and latest weightings) within the portfolio: Nvidia (11.73%), Meta Platforms (10.73%), Broadcom (10.58%), Netflix (10.44%), Alphabet (10.31%), Microsoft (9.88%), Amazon.com (9.69%), Snowflake (9.53%), Apple (9.03%) and Tesla (7.98%). These are businesses with very strong economic moats.

One benefit to this ETF over the NDQ ETF is that it has a lower management fee. The FANG ETF has an annual management of 0.35% while the NDQ ETF fee is 0.48%.  

I’d guess a lot of people invest in the NDQ ETF for the big US tech names, so why not get a greater exposure to them?

The FANG ETF has done very well over the last three years, with an average return per annum of 17%, compared to 14.1% per annum for the NDQ ETF over the same time period. Of course, past performance is not a guarantee of future performance.

But these businesses are doing a number of things that could change the world and grow earnings in areas like AI, cloud computing, gaming, online video and so on. I think owning these names makes a lot of sense for people building wealth in their 30s.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is an ASX share that helps leading fund managers start their own fund management business.

It can help the funder with various services like seed funding of funds under management (FUM), working capital, distribution and client services, compliance, finance, legal, technology and other infrastructure. Taking this off the managers’ desk means the fundie can focus on the investing side of things.

The business has built a portfolio of solid fund managers, including Hyperion, Plato, Solaris, Antipodes, Spheria, Firetrail, Metrics, Five V and Coolabah.

2022 was a rough year, with strong inflation and rising interest rates leading to falling asset prices and an element of caution among investors about adding ore money into Pinnacle’s funds.

With asset prices now performing better and interest rate cuts on the horizon, the ASX share is now better placed to attract more FUM, in my opinion. In the second half of FY23, the fund managers saw net inflows of $3.1 billion.

Pinnacle has built an impressive portfolio of fund managers, and I like its initiative of looking to grow overseas. It recently helped start (and invested in) a Canadian small-cap fund manager.

According to Commsec, the Pinnacle share price is valued at 20x FY25’s estimated earnings.

The post Building wealth in your 30s? I’d buy these ASX shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• In a record year for ETFs growth, this ASX crypto fund returned 215%
• Here are 10 ASX shares I’d buy in 2024
• Bitcoin price predicted to hit $100k this year! I’m buying ASX 200 shares instead
• Why Boss Energy, Core Lithium, Pinnacle, and Syrah shares are rising today
• Here are the ASX’s 3 best ETFs of 2023

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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Pinnacle Investment Management Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Netflix, Nvidia, Pinnacle Investment Management Group, Snowflake, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Pinnacle Investment Management Group. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/4yGCYte

The BHP Group Ltd (ASX: BHP) share price is under selling pressure today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed on Friday trading for $47.54. In morning trade on Monday shares are swapping hands for $46.83 apiece, down 1.5%.

For some context the ASX 200 is up 0.02% at this same time.

The BHP share price is in the red despite another small uptick in the iron ore price over the weekend. The industrial metal is selling for US$135.60 per tonne.

Comparing apples to apples, rival ASX 200 miner Rio Tinto Ltd (ASX: RIO) shares down 0.1%, while the Fortescue Metals Group Ltd (ASX: FMG) share price is up 1.1%.

This comes amid media reports that BHP shareholders could be looking at billions of dollars in legal damages related to the 2015 Samarco Fundao iron ore tailings dam collapse in Brazil.

The collapse killed 19 people and caused massive environmental damage.

Here’s the latest.

BHP share price pressured amid court ruling

The BHP share price is down today as ASX investors consider the potential implications of the ruling on the Fundao Dam, which was owned and operated by Samarco Mineracao, a joint venture between BHP Brasil and Vale.

As Reuters reported, Brazilian federal court judge Vinicius Cobucci has ruled that BHP, Vale and their Samarco joint venture must pay 47.6 billion reais (US$9.7 billion, or AU$14.8 billion) in damages for the collapse.

According to the ruling, the legal damages will be used for local improvement projects in the impacted areas.

However, investors may be prematurely pressuring the BHP share price after the ASX 200 miner released a statement saying it “has not been served with a decision by the court”.

Management said they “will review the decision to assess its implications, the potential for an appeal and any potential impact to the group’s provision related to the Samarco dam failure”.  

The miner noted:

Since early CY2021, the parties have been engaging in negotiations to seek a settlement of obligations under the Framework Agreement and BRL$155bn Federal Public Prosecution Office claim and the negotiations are expected to resume in February 2024.

The company said that, as reported in its 2023 annual report, the group’s provision related to the Samarco dam failure is US$3.7 billion (as at 30 June 2023).

“BHP Brasil is fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil through the Fundacao Renova,” the miner stated.

Fundacao Renova is a not-for-profit, private foundation. It was established after the damn collapse to implement 42 remediation and compensatory programs in Brazil. 

The BHP share price is down 5% over the past 12 months.

The post BHP share price tumbles amid reported $14.8 billion Brazil dam disaster hit appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Are ASX blue-chip shares actually safe investments?
• How to generate $10,000 of passive income from BHP shares
• ASX mining stock doubles in value in 30 minutes on news of BHP deal
• ASX 200 mining stocks underperforming as Andrew Forrest shutters WA nickel mines
• How I invest and make money from ASX mining shares

Motley Fool contributor Bernd Struben 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/Ds1RZv7

Mineral Resources Ltd (ASX: MIN) shares could be a bargain buy right now.

That’s the view of analysts at Bell Potter, which have responded positively to the mining and mining services company’s quarterly update.

What is the broker saying about Mineral Resources shares?

According to the note, the broker was pleased enough with its performance during the quarter.

It notes that production was stronger than expected but prices were lower. It said:

Production was generally above our forecasts. Lithium prices declined further during the quarter and were lower than our forecasts. […] MIN noted that the lithium division is profitable at current lithium prices. Iron ore prices were up 20% qoq. On the 35Mtpa Onslow Iron Project construction, MIN reiterated that the project is well within budget, and on target to deliver first ore-on-ship in June-24.

In light of this, the broker remains very positive on Mineral Resources shares and has reiterated its buy rating on them.

And while its analysts have cut their price target to $75.00 (from $90.00) due to weak lithium prices, this still implies potential upside of 26% for investors over the next 12 months.

The broker concludes:

Our price Target Price is reduced due to our downgraded lithium price outlook. For 2024, we estimate SC6 prices averaging US$1,100/t (prev. US$2,500/t) and hydroxide prices averaging US$18,125/t (prev. US$32,500/t). EPS changes in this report include: FY24 -26%, FY25 -29%, FY26 -7%. From June 2024 the Onslow Iron Project is guided to commence its production ramp-up. The project will grow attributable iron ore production by 21Mtpa (more than 100%), and Mining Services volumes by 140Mtpa (~50%, before haul road sell down), leading to significant forecast growth earnings.

The post Why this leading broker is tipping Mineral Resources shares to jump 25% appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Mineral Resources share price rockets 7% as lithium projects remain profitable
• Why Incitec Pivot, Mineral Resources, Patriot Battery Metals, and ResMed shares are racing higher
• Here are the top 10 ASX 200 shares today
• Mineral Resources shares tumble 9% on unfavourable broker rating

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/L7tWQ3o

The team at Bell Potter has been scouring the market for ASX dividend shares to buy in recent weeks.

Two shares that were identified as a buys are listed below. Here’s what the broker is saying about them:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX dividend share that Bell Potter rates as a buy is Dexus Convenience Retail REIT.

The broker believes the convenience retail and service station property company’s shares are cheap at current levels. It explains:

DXC is a convenience retail / service station REIT with a network of over 100 assets across the country predominantly leased to institutional and strong covenant tenants including Chevron, Viva, EG, Mobil and 7-Eleven. DXC trades at a circa 34% discount to stated NTA which we think is overly punitive for a sub-sector where there is clear price discovery (double digit number of asset sales for DXC at a blended 2-3% discount to book, and 65 market transactions in FY23), and investors for commercial real estate have a clear preference for smaller cheque size assets.

In respect to income, the broker is forecasting dividends per share of 20.9 cents in FY 2024 and 20.5 cents in FY 2025. Based on its current share price of $2.62, this equates to yields of 8% and 7.8%, respectively.

Bell Potter has a buy rating and $2.85 price target on its shares.

Elders Ltd (ASX: ELD)

Another ASX dividend share that has been given the thumbs up by Bell Potter is agribusiness company Elders.

The broker was pleased to see that operating conditions have been more favourable for Elders since the release of its FY 2023 results. It commented:

Our Buy rating is unchanged. Since reporting FY23 results in Nov’23 soil moisture profiles in key summer cropping regions have improved (with NOAA long range forecasts shifting to ENSO neutral by April-June) and livestock prices have firmed, with volumes generally continuing to demonstrate high single-to-double digit YOY gains in both cattle and sheep/lamb markets.

Bell Potter expects this to support the payment of dividends of 34 cents per share in FY 2024 and 41 cents per share in FY 2025. Based on the current Elders share price of $8.82, this will mean yields of 3.85% and 4.65%, respectively.

Its analysts have a buy rating and $9.50 price target on the company’s shares.

The post Bell Potter says these ASX dividend shares are top buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy today
• Buy this ASX 300 share for 13% upside and a 4% dividend yield
• Buy these quality ASX dividend shares with 5%+ yields
• 2 ASX dividend shares with juicy yields to buy right now
• Here are the top 10 ASX 200 shares 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 recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/26MeOUX

ASX blue-chip shares have a reputation for being goliaths of their industry. But does being bigger mean better in recessions and bear markets?

What ASX blue-chip shares are there?

There is no definitive definition of how big an ASX blue chip should be. But, we’re certainly talking about many tens of billions of dollars in terms of market capitalisation.

ASX mining and financial shares are the two biggest market sectors on the ASX. Retail shares also make up a sizeable portion.

Some of the biggest miners include BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO).

Financial blue chips include the big four banks — Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) — and Macquarie Group Ltd (ASX: MQG).

Big names in the retail, health care and energy sectors include CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), Woodside Energy Group Ltd (ASX: WDS), Goodman Group (ASX: GMG), Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW) and Transurban Group (ASX: TCL).

According to the ASX, the miner BHP has a market capitalisation of $237 billion, and Transurban has a market capitalisation of just over $40 billion.

Some risks

These blue-chip stocks may be huge, but they are not immune to large swings in their share prices.

We’ve got to expect share price volatility because current events are always popping up, which can be worrying. If people sell during widespread market volatility, it results in a permanent loss from temporary volatility.

When the related commodity price falls, names like BHP, Fortescue, Rio Tinto and Woodside can suffer heavily.

Just because they’re large doesn’t mean they’re not susceptible to challenges. For example, CSL is facing an increasing amount of competition from other biotechnology businesses. Banking competition sent the share prices of the banks downwards in February last year. Worries about household finances can hurt banks and retailers.

Why ASX blue-chip shares can provide stability

There is typically more liquidity with ASX blue-chip shares. This means more shares being sold and bought, making it easier for investors to buy and sell shares at close to the last market price.

Blue chips are the biggest companies in their industries, so they are likely to have the strongest balance sheet and the most well-known brands. Combined with the liquidity benefits, that usually means ASX blue-chip shares fall less in bear markets compared to smaller businesses on the ASX (particularly smaller competition).

The strongest balance sheets of ASX blue-chip shares can also mean larger companies are able to acquire distressed, smaller competition. During the GFC, the big banks acquired smaller banks, helping entrench their position.

Many of these businesses have been around for many decades. I think there’s a good chance they will continue for many more years. In my mind, a large decline in share prices across the board is often the best time to think about investing.

The post Are ASX blue-chip shares actually safe investments? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy next week
• How to generate $10,000 of passive income from BHP shares
• ASX experts: CBA shares are overvalued
• 3 no-brainer ASX stocks I’d buy before a bull run
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Tristan Harrison has positions in Fortescue. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/h9cS5mu