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ASX exchange-traded fund (ETF) investors can’t seem to catch a break. Almost every month or two, it seems a new ASX ETF joins the Aussie share market. Last year alone, we saw the ASX debut of the BetaShares Crypto Innovators ETF (ASX: CRYP). Not to mention the BetaShares Climate Change Innovation ETF (ASX: ERTH). Or the ETFS Hydrogen ETF (ASX: HGEN). But today, the ASX welcomes yet another new fund. This one is also from provider BetaShares, and is now known as the BetaShares Video Games and Esports ETF (ASX: GAME).

GAME aims to track the Nasdaq CTA Global Video Games & Esports Index. This, in turn, aims to provide “exposure to a portfolio of leading global video gaming and esports companies”.

The provider points out that video games and esports have been a ballooning industry over the past decade or two. It is expected to grow far further over the coming years, if BetaShares is to be believed.

As it currently stands, GAME’s portfolio has 49 different underlying holdings, hailing from 11 different countries. The largest chunk is towards the United States though, with more than 40% of the portfolio.

GAME on for a new ASX ETF

Its largest shares include Activision Blizzard Inc (NASDAQ: ATVI), Electronic Arts Inc (NASDAQ: EA), China’s Tencent Holdings, Japan’s Nintendo and Take-Two Interactive Software Inc (NASDAQ: TTWO).

But GAME isn’t the first ETF to cover gaming and esports on the ASX. The VanEck Video Gaming and Esports ETF (ASX: ESPO) has been listed on the ASX since September 2020. It currently holds many of the same shares as GAME, including Tencent, Activision Blizzard and Nintendo, albeit with more weighting to chip makers like NVIDIA Corporation (NASDAQ: NVDA). However, ESPO tracks a different index – the MVIS Global Video Gaming and eSports Index.

BetaShares tells us that the Nasdaq index that GAME will track has delivered a performance of -12.95% over the past 12 months, but a far more positive average of 18.77% per annum over the past 3 years.

GAME will charge its investors an annual management fee of 0.57% per annum, or $57 per year for every $10,000 invested.

BetaShares Video Games and Esports ETF units opened at $11.96 this morning and are currently priced at $12.12 each at market close today, up 1.42%. 

The post A new gaming ETF just joined the ASX. Here’s what we know appeared first on The Motley Fool Australia.

More reading

• Origin (ASX:ORG) share price gains despite $200 million financial hit
• Is the EML (ASX:EML) share price the most undervalued growth opportunity?
• What even are rare earths and why are ASX shares with exposure always in the spotlight?
• Brokers give their verdict on the Temple & Webster (ASX:TPW) share price
• ‘Not enough’: Government challenges AGL (ASX:AGL) over planned closures

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. owns and has recommended Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended Activision Blizzard, Nvidia, and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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 Origin Energy Ltd (ASX: ORG) share price spent today in the green despite the company announcing it has been hit with a non-cash impairment charge after it agreed to sell a 10% stake in Australia Pacific LNG.

The impairment charge is worth between $190 million and $200 million. It will be recognised in the company’s results for the first half of financial year 2022.

As of Thursday’s close, the Origin share price is $6.19. That’s 0.32% higher than it was at the end of Wednesday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) also gained 0.3% today.

Let’s take a closer look at today’s non-price sensitive news from Origin.

Origin’s $200 million impairment charge

The Origin share price moved in line with the broader market on Thursday despite the company announcing its half year results, being released on 17 February, will include a writedown of up to $200 million.

It follows Origin’s decision to sell 10% of its stake in Australia Pacific LNG to EIG Partners. The institutional energy infrastructure investor agreed to pay $2.12 billion for the stake in the asset.

The transaction is expected to be completed in the first quarter of 2022.

In today’s release, Origin said the charge will be partially offset by the release of a $100 million to $110 million benefit from the foreign currency translation reserve.

Additionally, the energy company expects to recognise a capital gains tax expense of $170 million to $180 million from the sale.

Though, it noted no significant cash tax payment is expected from offsetting tax deductions.

Origin share price snapshot

While the broader market has struggled in 2022 so far, the Origin share price has moved higher.

It has gained 15% year to date. In that time, the ASX 200 has slipped 4%.

Origin’s stock is also trading for 39% more than it was this time last year.

The post Origin (ASX:ORG) share price gains despite $200 million financial hit appeared first on The Motley Fool Australia.

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• These 3 ASX energy shares just hit 52-week highs
• Origin (ASX:ORG) share price hits 52-week high before slumping. What’s going on?
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The EML Payments Ltd (ASX: EML) share price may be an undervalued opportunity according to some investors.

What does EML Payments do?

EML says that it provides an innovative payment solutions platform that helps businesses all over the world. Whenever money is in motion, its technology can power the payment process so that money can be moved quickly, conveniently and securely.

Want some examples? The business has three different segments.

One is the ‘general purpose reloadable’, with use cases like banking as a service, neo-lending, salary packaging and gaming payouts.

Next is ‘gift and incentive’, with uses like shopping centre gift cards, employer incentives and consumer incentives.

The third segment is ‘virtual account numbers’ with use cases like commercial payments and buy now, pay later (BNPL).

Recent growth

One of the main things that investors like to look at is the recent growth of the business. Therefore, its performance can have a serious impact on the EML share price. FY21 was the latest annual result released. It was also a record for EML.

FY21 gross debit value (GDV) increased 42% to $19.7 billion, helping revenue increase 60% to $194.2 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 65% to $53.5 million. The underlying net profit after tax (NPATA) rose 54% to $32.4 million.

But that was the latest annual result. Investors have seen more up-to-date numbers with the first quarter of FY22. In the first three months of FY22, GDV grew 14% to $5.5 billion, gross profit increased 20% to $34.4 million and underlying NPATA surged 41% to $4.6 million.

Why might the EML Payments share price be undervalued?

Last year, the market crunched EML shares on concerns that the Central Bank of Ireland (CBI) could significantly hurt EML’s European growth based on anti-money laundering and counter-terrorism financing worries. The EML share price is still 37% lower than before that CBI news.

However, in late November it was announced that the CBI will permit EML’s European subsidiary to sign new customers and launch new programs, whilst staying within the material growth restrictions. EML is confident that it can meet those obligations. Broad-based reductions will not be imposed.

UBS reckons that EML is now less risky because of the positive update from CBI. The ability to keep on winning customers is positive. EML has been working on removing higher volume, lower-yielding programs to enable it to comply with the material growth restriction.

For UBS, the price target on the EML share price is $4.40. That’s around 35% higher than today’s price.

Other ASX growth share price targets

Is EML the most undervalued ASX growth share? Well, UBS has a bigger price target upside on other businesses. But that’s not to say EML isn’t an attractive opportunity.

For example, the Temple & Webster Group Ltd (ASX: TPW) price target from UBS is $11.80 – around 40% more than today. The UBS price target on Adore Beauty Group Ltd (ASX: ABY) is $6 – this implies an upside of around 100%.

The post Is the EML (ASX:EML) share price the most undervalued growth opportunity? appeared first on The Motley Fool Australia.

More reading

• Down almost 20% in 2022, is the EML share price now too good to ignore?
• 2 fast-growing ASX shares rated as buys in this correction
• 2 ASX fintech shares that could rocket this year
• Why is EML payments (ASX:EML) share price having a rollercoaster start to the year?
• Here’s why the EML (ASX:EML) share price could be a big opportunity

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. owns and has recommended EML Payments and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool Australia has recommended Adore Beauty Group Limited and Temple & Webster Group 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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ASX shares with exposure to rare earths often find their way into the media headlines.

And for good reason.

Most of the ASX shares exploring for and producing rare earths have seen their share prices far outpace the broader index.

Here’s what we mean…

ASX shares exposed to rare earths racing ahead

Over the past 12 months the All Ordinaries Index (ASX: XAO) is up 6.47%.

Over that same time, ASX rare earths share Australian Strategic Materials Ltd (ASX: ASM) has gained 71%. And the Iluka Resources Limited (ASX: ILU) share price has rocked 61%.

Hold on. We’re not quite done yet.

Competitor ASX shares involved in rare earths include Dreadnought Resources Ltd (ASX: DRE), up 138% in 12 months; Hastings Technology Metals Ltd (ASX: HAS), up 41%; and Lynas Rare Earths Ltd (ASX: LYC), whose share price is up 86% since this time last year.

See what we mean?

What the heck are rare earths anyway?

To start off with, rare earths aren’t really all that rare as far as how much of them you can find across the Earth. But they earn their name because they’re generally only found in very low levels of concentration. Meaning to get to them, companies like the ASX shares listed above need to sort through a whole bunch of ore first. And then laboriously filter the choice bits out.

Depending on who you ask, there are either 15 or 17 rare earth elements (REEs).

Regardless of how many elements we choose to put into the category, you’d be hard-pressed to find anyone who can name them all. Or even a few.

Praseodymium anyone? How about gadolinium? Or maybe ytterbium?

We’ll leave off the rest of the list. (To impress your friends, you can find that list here.)

Yet, while they’re hardly household names, rare earths are critical to almost every high-tech gadget you own. Including the smartphone or computer you’re probably using to read this right now.

They’re also important to the move to green energy, used in the construction of things like wind turbines.

But there’s an arguably bigger reason ASX shares working in the rare earths space are frequently in the spotlight.

That’s because these elements are crucial to modern militaries across the world. We’re talking satellites, missiles, submarines, high-tech ground vehicles, and all manner of aircraft here.

Just how dependent are these military machines on rare earths?

Very.

Roughly 418 kilograms of rare earths are used to make a single F-35 Lightning II fighter jet. And some 4,100 kilograms are required before an SSN-774 Virginia-class submarine can head off to duty, according to a 2013 United States Congressional Research Service report.

Why are so many ASX shares involved with rare earths?

While the West is moving to break China’s stranglehold, the Middle Kingdom still controls some 70%-80% of the REE market.

As tensions with China have increased over the past few years, the United States and other nations have been increasingly turning to Australia to fill any potential shortcomings in their REE supplies.

And Australia is well placed to do so.

According to the CSIRO’s Critical Energy Minerals Roadmap, Australia has the sixth-largest deposit of economically viable rare earth elements of any nation on the planet.

And the ASX shares listed above are working hard to secure those crucial resources.

The post What even are rare earths and why are ASX shares with exposure always in the spotlight? appeared first on The Motley Fool Australia.

More reading

• Do Lynas Rare Earths (ASX:LYC) shares pay dividends?
• Top broker picks 6 ASX 200 shares with earnings surprise potential
• Why has the Hastings Technology (ASX:HAS) share price soared 25% in a week?
• Lynas (ASX:LYC) share price jumps on government green light
• The Lynas (ASX:LYC) share price is tumbling 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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The Temple & Webster Group Ltd (ASX: TPW) share price has been out of form on Thursday.

In late trade, the online furniture retailer’s shares are down 5% to $8.36.

Why is the Temple & Webster share price falling?

Investors have been selling down the Temple & Webster share price today after brokers took a hammer to their valuations following its half year results.

For example, the team at Macquarie has retained its neutral rating but cut its price target by a sizeable 20% to $9.70. Whereas over at Morgan Stanley, its analysts have retained their overweight rating and cut their price target by 14% to $14.00.

It was a similar story at Bell Potter. Although its analysts have upgraded the company’s shares to a buy rating, they have trimmed their price target on them by 5% to $12.00.

What did Bell Potter say?

Bell Potter has reduced its estimates to reflect its belief that the company’s revenue growth will moderate as interest rates rise.

However, due to recent weakness in the Temple & Webster share price and its expansion into new categories, it sees enough value to recommend the company as a buy. In addition, due to the mountain of cash sitting on its balance sheet, the broker sees potentially accretive merger and acquisition (M&A) opportunities ahead.

It commented: “We have moderated our revenue growth forecasts as conservative measure in a rising interest rate environment, although we are yet to allow for upside from TPW’s Home Improvement offering. The net effect is our PT reduces to $12.10 (previously $12.75).”

“Following TPW’s share price retreat, we believe valuation is now more appealing with FY23e EV/sales ~1.8x. Also, TPW’s new growth horizons (B2B / Home Improvement), the structural shift to online plus M&A prospects, provide attractive offsetting benefits vs potential risks from the housing cycle. Accordingly, we upgrade from Hold to Buy.”

The post Brokers give their verdict on the Temple & Webster (ASX:TPW) share price appeared first on The Motley Fool Australia.

More reading

• Why AnteoTech, ASX, CIMIC, and Temple & Webster shares are dropping
• Why CBA, Computershare, Dicker Data, and Temple & Webster shares are on fire today
• Cha-ching! Temple & Webster (ASX:TPW) share price soars 12% on record half revenues
• Why Appen, Nanosonics, Nearmap, and Temple & Webster are sinking
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The AGL Energy Ltd (ASX: AGL) share price has struggled throughout Thursday.

In afternoon trade, shares in the gentailer are trading 3% lower to $7.30. The downside deepened on the AGL share price from around 1:50pm AEDT.

While the company released its earnings for the first half of FY22 this morning, discontent appears to extend beyond the financials. The company can count the federal energy minister, Angus Taylor, and Greenpeace among the displeased — funnily enough, for opposing reasons.

ASX-listed AGL causes alarm with greener plans

To the disappointment of shareholders, AGL witnessed a 41% fall in its underlying net profits in the latest half-year. The poor result was partly blamed on further increases in the use of rooftop solar. With no signs of the renewable transition slowing down, shareholders are hoping AGL can insulate itself somehow.

Acknowledging the pressures, the company revealed it would be bringing forward closures of its coal generation assets. These changes will occur on behalf of Accel Energy (planned demerger from AGL on the ASX), which is the company’s offshoot responsible for providing ‘secure, low cost energy’.

Specifically, Accel Energy plans to close its Bayswater Power Station by 2033 and Loy Yang A Power Station by 2045. Previously, these coal-fired electricity producers were slated to shutdown by 2035 and 2048 respectively. In other words, this will eliminate a combined five years worth of electricity production and emissions.

The news has triggered concern from energy minister Taylor, as the closures would create a 5,000 megawatts gap in supply. This represents approximately 8% of Australia’s electricity generation.

Exit of such a considerable amount of reliable generation is a concern for the continued reliability and affordability of the system. Delivery of new, timely, replacement dispatchable capacity will be critical in keeping prices low and the lights on.

Angus Taylor, Minister for Industry, Energy, and Emissions Reduction

Assets aren’t getting any younger

Meanwhile, members of Greenpeace Australia Pacific have discredited AGL’s earlier closures as a “token effort”. In contrast, the environmental organisation has suggested the move doesn’t go far enough.

Dan Gocher of the shareholder advocacy organisation, Australasian Centre for Corporate Responsibility (ACCR) approaches the discussion from an economic viability angle. For instance, Gocher highlighted Bayswater and Loy Yang will be 48 years old and 61 years old respectively at their new destined closure dates.

AGL is facing increasing sustaining capital expenditure on its coal-fired power stations (up $17m to $162m), while it steadfastly refuses to invest in the transition, with growth and transformation capital expenditure declining (down $18m to $62m)

Dan Gocher, Director of Climate and Environment at ACCR

It comes with a caveat

Despite the green strides from ASX-listed AGL, it comes with a disclaimer. In the company’s earnings call, managing director and CEO Graeme Hunt noted a few conditions for these earlier closures to occur.

Citing numbers from the Australian Energy Market Operator (AEMO), a decarbonised future for Australia will come with a $70 to $90 billion price tag. As such, Hunt hints at a dependency for future coal closure dates.

We need the entire system to be ready to operate without our critical baseload generation.

Australia’s energy transition will not happen overnight – the market must continue to provide people with affordable energy while pursuing innovation and technology that will deliver decarbonisation.

Graeme Hunt, Managing Director and CEO AGL Energy

It looks like ASX-listed AGL will carrying out a balancing act for the foreseeable future. The AGL share price is down 35% in the last 12 months.

The post ‘Not enough’: Government challenges AGL (ASX:AGL) over planned closures appeared first on The Motley Fool Australia.

More reading

• AGL (ASX:AGL) takes a knife to dividends in its first-half earnings
• 5 things to watch on the ASX 200 on Thursday
• Both have had a bumper start to the year. But which is the better buy, AGL or Origin (ASX:ORG) shares?
• Could AGL (ASX:AGL) be gearing up for a major capital raise?
• Own AGL (ASX:AGL) shares? Here’s what to look for when the company reports next week

Motley Fool contributor Mitchell Lawler 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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When it comes to expert ASX investors that we mere mortals look up to, it doesn’t get too much more illustrious than Kerr Neilson, founder of Platinum Asset Management Ltd (ASX: PTM). That is especially true after the recent drama revolving around Magellan Financial Group Ltd‘s (ASX: MFG) Hamish Douglass.

Mr Neilson founded Platinum back in the 1990s, and since then has gone on to become one of the ASX’s most respected and followed investors. That’s despite Neilson leaving his full-time role at Platinum a few years ago.

So when this investor makes a prediction, it might just pay to listen.

TINA is over: Kerr Neilson

According to a report in the Australian Financial Review (AFR) this week, Neilson has called the end of the ‘TINA era’ (not to be mistaken with Tina Arena). TINA is an acronym that stands for ‘There Is No Alternative’. It describes the near-zero interest rate investing environment over the past few years.

With rates at near-zero across most of the world, storing cash in bank accounts, term deposits or in fixed-interest investments has become extremely unattractive due to the almost non-existent real returns investors could expect. This was deliberate to some extent – central banks around the world wanted investors to pay a high price for safety, in order to encourage more investment and spending in the face of the COVID-19 pandemic.

But it also had the side-effect of forcing a load of cash into growth assets like shares and property. Many investors might have preferred to keep their cash safe in the bank, but the prospect of receiving no rewards for this forced many to turn to investing in shares or houses.

Back to basics with value investing…

But Neilson reckons this TINA era is over. Here’s some of why he is arguing that interest rate rises will change the game:

As soon as you get a repricing of money, a whole lot of shifts take place in the relative value of things… Many of these tech companies are still well over ten times sales, and they’ve got to compound for 20 to 30 per cent a year for a long time to get an earnings yield that is anything like a bond…

When you’re a novice, you regard price as a signal of your judgements… When you’re a pro, you start with a clear view of what something’s worth and then you look at the price in relation to that.

In keeping with Platinum’s roots, Neilson reckons that investors should look to value investing through a company’s fundamentals going forward. He says that free cash flow yields will return as “a dominant driver of investment returns”.

Nielson says he’s looking at the Chinese market in particular:

Chinese industrials in the healthcare, insurance, consumer staples and services space should perform well thanks to cheap valuations, the country’s vast middle class, and the widening trade rift with the US.

So that’s Mr Nielson’s perspective on the current market. No doubt Platinum Asset Management shareholders will hope Neilson’s expertise can translate over to his old company.

The post This top investor says TINA era is over. What could this mean for ASX 200 shares? appeared first on The Motley Fool Australia.

More reading

• Brokers give their verdict on the Temple & Webster (ASX:TPW) share price
• ‘Not enough’: Government challenges AGL (ASX:AGL) over planned closures
• The AnteoTech (ASX:ADO) share price RAT-tles down 8% following TGA update
• Top brokers name 3 ASX shares to sell today
• Own QBE (ASX:QBE) shares? Here’s what to watch when the insurer reports next week

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 Anteotech Ltd (ASX: ADO) share price is falling today after the healthcare company announced it has another hoop to jump through regarding its COVID-19 rapid antigen tests (RATs).

At the time of writing, the AnteoTech share price is down 8.5% to 22 cents.

Let’s take a look at what’s happening…

New requirement for AnteoTech RAT tests

AnteoTech is seeking approval from the Therapeutic Goods Administration (TGA) to register its RAT test for COVID-19.

The RAT incorporates AnteoTech’s existing EuGeni Reader technology with a SARS CoV-2 Ag Rapid Diagnostic Test (RDT).

If successful, the approval would allow AnteoTech to market and commercialise its RAT for Australian use. There is also the potential for expansion into larger markets.

The company prides its EuGeni Reader as being a “fast, accurate and compact solution for rapid point-of-care testing”. It has been adapted to create the RAT and results so far indicate “a 97.3% sensitivity” rate.

However, AnteoTech has not yet been successful.

The healthcare company made the initial submission back in September. Today marks the third registration update released to shareholders. In it, the TGA asks for more clinical data from COVID-19 patients using the device.

In order to proceed with the application, further clinical trials will be conducted in Europe and Australia. Once the required data is obtained, AnteoTech intends to compile a new submission to the TGA.

Comment from management

AnteoTech said these new trials will demonstrate the product’s performance “relating to new variants of concern listed by the World Health Organisation (WHO), lower limit of detection and other performance measures from a vaccinated population”.

AnteoTech CEO Derek Thomson said:

We have worked directly with the TGA to understand the most efficient method of supplying the data they now require and our highest priority is to generate this data as quickly as possible.

These further trials will provide AnteoTech with the opportunity to gain additional clinical data which will enhance the growing body of evidence for performance of both the EuGeni Reader and the RDT.

AnteoTech share price snapshot

The AnteoTech share price started to pick up in the middle of 2020, right in the midst of the pandemic. Beforehand, its shares were trading around 1 cent each.

Shares reached a new high in April last year, hitting 44 cents each.

The AnteoTech share price has been fluctuating in 2022. The highlight has been a 30% gain in the first week of February.

The healthcare company has a market capitalisation of $426 million and 1.97 billion shares on issue.

The post The AnteoTech (ASX:ADO) share price RAT-tles down 8% following TGA update appeared first on The Motley Fool Australia.

More reading

• Why AnteoTech, ASX, CIMIC, and Temple & Webster shares are dropping
• Rats! How have AnteoTech (ASX:ADO) shares already gained 30% in February?
• Why are ASX COVID test shares climbing today?
• AnteoTech (ASX:AD) share price surges 15% as COVID-19 RAT race continues
• Why did the AnteoTech (ASX:ADO) share price tumble 13% on Monday

Motley Fool contributor Alice de Bruin 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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On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.

Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why they are bearish on them:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Citi, its analysts have retained their sell rating and cut their price target on this banking giant’s shares to $90.75. This was despite CBA delivering a first half profit that was well-ahead of Citi’s expectations. The broker believes that the market may be too optimistic on the bank’s margin outlook and notes that rate increases will take time to have a meaningfully positive impact. The CBA share price is trading at $100.32 on Thursday afternoon.

Mineral Resources Limited (ASX: MIN)

A note out of Ord Minnett reveals that its analysts have retained their sell rating and cut their price target on this mining and mining services company’s shares to $45.00. This follows the release of a half year result that fell well short of the broker’s expectations. And with the broker expecting iron ore prices to pullback in the coming months, it continues to believe that the company’s shares are overvalued. The Mineral Resources share price is fetching $54.80 today.

Nanosonics Ltd (ASX: NAN)

Analysts at Goldman Sachs have retained their sell rating and cut their price target on this infection prevention company’s shares. This follows news that the company’s sales agreement with GE Healthcare has come to an end. The broker was surprised by the abruptness of the announcement, particularly given the importance of the relationship to Nanosonics. Overall, Goldman has concerns over the impact this will have on its sales and has downgraded its estimates accordingly. The Nanosonics share price is trading at $4.72 on Thursday.

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

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• CBA’s stunning profit, Fortescue investing $10b in renewables. Scott Phillips on Nine’s Late News
• CBA (ASX:CBA) boss Matt Comyn sounds warning on interest rate hikes
• Broker upgrades CBA (ASX:CBA) shares to buy rating following ‘great’ half
• Why Bapcor, Mineral Resources, Nanosonics, and Syrah shares are falling today
• Could climbing costs crash the ASX lithium share party?

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 Nanosonics Limited. The Motley Fool Australia owns and has recommended Nanosonics 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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All eyes will be on the QBE Insurance Group Ltd (ASX: QBE) share price next week when the company drops its earnings for 2021. The insurer will release its results next Friday.

At the time of writing, the QBE share price is $12.65, 1.33% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.27%.

Let’s take a look at what the market might expect to hear from QBE next week.

What to look out for when QBE reports

The release of QBE’s earnings for 2021 will round off its strong first-half results.

The QBE share price surged 8% when the company released its results for the first 6 months of 2021 in August.

Within them, it detailed a 26.9% increase to its gross written premiums, an 8.9% increase of its net earned premiums, and statutory net profit after tax of US$441 million.

Unfortunately, the company didn’t provide guidance.

Though, its interim CEO said, “while we continue to benefit from meaningful compound premium rate increases in all our geographies, there are signs that pricing momentum is moderating, particularly in international markets.”

Additionally, the company stated it will keep pushing forward with its efficiency program focused on IT modernisation and digitisation.

Lower expenses and restructuring charges might also be worth keeping an eye out for next Friday.

QBE is targeting an expense ratio of 13% by 2023, compared with 13.7% in the first half of 2021.

It, therefore, expects to pay a restructuring charge of US$150 million over 3 years, of which US$29 million was recognised in the last half.

Additionally, Friday’s release will be the first set of results posted under the company’s new CEO. Andrew Horton took over the role in September 2021.

QBE share price snapshot

The QBE share price has been outperforming the ASX 200 in 2022 so far. It has gained 6% compared to the index’s 4% slump.

QBE’s stock is also 44% higher than it was this time last year.

The post Own QBE (ASX:QBE) shares? Here’s what to watch when the insurer reports next week appeared first on The Motley Fool Australia.

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• Why is the QBE (ASX:QBE) share price in the green this week?
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• ASX 200 shares offer 12% upside after sell-off: JP Morgan

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

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