Tag: Motley Fool

Key points

• CSL’s shares have fallen heavily in 2022
• Citi sees this as a buying opportunity
• The broker expects the acquisition to boost more than just CSL’s near term earnings

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The CSL Limited (ASX: CSL) share price is edging lower on Tuesday morning.

At the time of writing, the biotherapeutics giant’s shares are down slightly to $259.86.

This means the CSL share price is now down over 12% since the start of the year.

Is the CSL share price in the buy zone?

According to a note out of Citi from last week, its analysts see a lot of value in the CSL share price at the current level.

The note reveals that its analysts have retained their buy rating and $340.00 price target on the company’s shares.

Based on the current CSL share price, this implies potential upside of 31% over the next 12 months.

What is the broker saying?

Citi has been running the rule over the $7 billion Vifor Pharma acquisition and likes what it sees.

While the acquisition is expected to be accretive to earnings, the broker isn’t as focused on that as others. Instead, Citi sees Vifor Pharma’s complementary research and development (R&D) pipeline as something to get excited about.

In respect to earnings, Citi said: “Because of the large difference in the earnings multiples of both companies and the low cost of debt, we expect the transaction to be double digit NPATA accretive (although ROIC dilutive).”

As for its R&D pipeline, the broker commented: “The key positive from the transaction is that it expands the CSL late stage R&D pipeline, which we have noted for some time was limited for a company the size of CSL.”

And while Citi has a few concerns over “whether this new renal division adds or detracts from the overall CSL strategy,” it isn’t enough to put it off recommending the CSL share price as a buy.

The post Top broker says latest CSL (ASX:CSL) acquisition will boost more than its bottom line. Here’s why appeared first on The Motley Fool Australia.

More reading

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• Own CSL (ASX:CSL) shares? Here’s why the company is moving on from COVID research
• Analysts name 2 beaten down ASX shares with 30% upside
• Can the CSL (ASX:CSL) share price reach pre-COVID highs?

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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The Boral share price is charging higher on Tuesday following the announcement of its capital return
• Shareholders can expect to receive a $2.65 per share capital reduction and an unfranked 7 cents per share dividend
• Investors will need to be on the Boral share register by 7 February to receive the payments

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The Boral Limited (ASX: BLD) share price is galloping ahead this morning following its announcement of a multibillion-dollar capital return for shareholders.

In early morning trade, shares in the materials company are up 6.8% from their previous close to $6.27. Investors are jumping on the Boral bandwagon as it readies to return $3 billion to its shareholders.

Let’s take a closer look at the details announced today.

Three billion reasons why the Boral share price is higher today

The Boral share price is pushing higher today amid its decision to shower its shareholders in a massive capital return.

According to the company’s announcement, the company will return $3 billion of surplus capital to shareholders. This will be comprised of a $2.65 per share capital reduction and an unfranked 7 cents per share dividend.

Notably, this follows the 2021 annual general meeting where shareholders approved the share capital reduction.

Additionally, the company has worked with the Australian Taxation Office (ATO) to establish the tax implications. It has been confirmed that no part of the capital reduction will be treated as a dividend.

The ATO is expected to issue a class ruling regarding Boral’s capital reduction. This should contain details on how shareholders will need to treat the return.

Moreover, the capital return is a product of Boral’s divestment and sale of its North American building products business. In addition, the capital reduction is on top of a previously announced on-market share buy-back program.

Management commentary

A flurry of various forms of capital return has pushed the Boral share price higher in the past year with the company selling off parts of its business. Boral CEO and managing director Zlatko Todorcevski commented:

In the 12 months following the sale of USG Boral and culminating with the announced sale of Boral’s North American Fly Ash business, we have completed an extensive portfolio realignment, unlocking significant value for our shareholders. Our reshaped portfolio allows us to focus on strengthening the performance and profitability of our core Australian construction materials business.

What’s next?

Lastly, it is worth highlighting the key dates for the capital return to take place.

Tomorrow, 2 February 2022, will be the effective date for which the share capital reduction is carried out. Following that, 4 February will see the first day of trading for shares ‘ex return of capital’.

Importantly, Monday 7 February will be the record date for eligibility of the capital return. Shareholders will need to be on the share register by this date to be a part of the $3 billion bonanza.

Finally, Monday 14 February is the date shareholders will receive the return of capital and dividend.

The Boral share price is up more than 25% in the past 12-months.

The post Boral (ASX:BLD) share price takes off amid $3b return of capital appeared first on The Motley Fool Australia.

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

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

What happened

The stock of Tesla (NASDAQ: TSLA) raced out of the gate Monday morning after the world’s most famous electric vehicle (EV) stock won an endorsement from Barron’s magazine over the weekend, followed by a second endorsement from Credit Suisse this morning.

The Tesla share price finished Monday’s session up 10.68% to $936.72 .

So what

On Saturday, Barron’s called Tesla stock a better buy than either General Motors (NYSE: GM) or Ford (NYSE: F).

Tesla just finished reporting strong fourth-quarter profits, Barron’s said, yet its stock suffered its third-worst post-earnings sell-off in history as investors fretted over the lack of new Tesla models being brought to market in 2022.

But this week, investors will get a chance to compare the EV maker’s results to those of Ford and GM, and Barron’s believes this will make it very clear how much faster Tesla is growing than its rivals — and why the stock may be worth its forward earnings multiple of 83.

Seconding that emotion this morning, investment bank Credit Suisse Group upgraded shares of Tesla to outperform, with a $1,025 price target, StreetInsider.com reports.

Now what

Credit Suisse said it expects “further volume growth and sustained margin strength for Tesla” and “positive EPS revisions,” noting that its predictions for the EV maker’s 2022 profits are a good 25% ahead of what the rest of Wall Street is expecting.

“Tesla remains the leader of the multi-decade secular transition to EVs,” the bank said, with a product lead over its rivals and no problems with demand. The only question is whether Tesla can produce cars fast enough to keep up with that demand. This gives it incredible pricing power, which is reflected in its profit margins: 50% better than what General Motors produces, and five times better than Ford.

Credit Suisse thinks this makes Tesla the car company — and the car stock — to beat. 

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

The post Why Tesla stock was on fire today appeared first on The Motley Fool Australia.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Tesla. 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.

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

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Key points

• Credit Corp has delivered revenue and profit growth during the first half
• The company’s profit has beaten the market’s expectations
• Guidance for FY 2022 has been reaffirmed

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The Credit Corp Group Limited (ASX: CCP) share price is storming higher following the release of its first half results.

At the time of writing, the debt collection company’s shares are up 5% to $35.68.

Credit Corp share price higher after solid first half growth

• First half revenue up 8% to $203.9 million
• Net profit after tax up 8% to $45.7 million
• Earnings per share of 67.7 cents
• Fully franked interim dividend of 38 cents per share
• FY 2022 profit guidance reaffirmed

What happened during the first half?

For the six months ended 31 December, Credit Corp delivered an 8% increase in revenue to $203.9 million. This was driven by solid revenue growth across both its ANZ and US debt buying businesses and its ANZ lending business.

The company advised that while market volume remains subdued, organic purchasing continues to recover. In fact, it reached its highest level since the start of the pandemic during the half.

On the bottom line, steady margins led to the company’s net profit after tax growing 8% to $45.7 million. The star of the show here was its US debt buying business which reported a 31% increase in profit to $8 million. This was supported by a 5% lift in ANZ debt buying profit, which offset a 7% reduction in ANZ lending profits.

According to CommSec, the market was expecting a first half profit of $42.7 million, which the company has easily outperformed. This may explain why the Credit Corp share price is charging higher today.

In light of this positive form, the Credit Corp board elected to increase its interim dividend by 6% to a fully franked 38 cents per share. This represents a payout ratio of approximately 56%.

Management commentary

Credit Corp’s CEO, Thomas Beregi, was pleased with the half and notes that the company is well-placed for the future thanks to recent acquisitions.

He said: “Credit Corp enjoys strong purchasing relationships and is well-positioned as unsecured credit balances recover and charge-offs normalise.”

“Acquisition of the Radio Rentals business assets has accelerated our plans to enter the sale of goods by instalment market and adds to the suite of lending pilots already underway. All pilots utilise Credit Corp’s leading technology platform including fast online decisioning and superior collections,” he added.

Outlook

Credit Corp has reaffirmed its profit and net lending guidance for FY 2022. It continues to expect a net profit of $92 million to $97 million and net lending volumes of $45 million to $55 million.

Management has, however, upgraded its purchase debt ledger (PDL) acquisitions guidance by $20 million to the range of $300 million to $320 million.

The post Credit Corp (ASX:CCP) share price up 5% after smashing first half profit expectations appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Key points

• Aussie Broadband delivered strong revenue growth during the first half
• Operating earnings margins crunched by its investment in promotions and increased usage costs during lockdowns
• Margins expected to improve in second half

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The Aussie Broadband Ltd (ASX: ABB) share price is on the move following the release of its first half trading update.

In morning trade, the telco’s shares are up 2.5% to $4.33.

Aussie Broadband share price higher on strong first half growth

• Total broadband subscribers up 45% year on year to 494,803
• Total services (broadband, voice, mobile, fetch, managed) up 41% to 636,446
• First half gross revenue growth of 49% to $237.3 million
• Marketing expenses up 69% to $16.4 million
• First half EBITDA (before transaction costs) up 7% to $9.1 million
• Guidance: Full year EBITDA expected to be $27 million to $30 million

What happened during the first half?

Aussie Broadband had another strong half for subscriber and revenue growth. For the six months ended 31 December, the company recorded a 45% year on year (11% quarter on quarter) jump in broadband subscribers to 494,803. This underpinned a 49% increase in gross revenue over the prior corresponding period to $237.3 million.

However, due to its investment in marketing to grow customer numbers, its operating earnings (EBITDA) was impacted. Management notes that promotions were used extensively to encourage customers already on the NBN to switch to Aussie Broadband. This led to its marketing expense as a percentage of revenue increasing to 12.6% from 11.9%. Combined with higher usage costs during lockdowns, this meant EBITDA grew only 7% to $9.1 million.

Positively, management expects its marketing spend as a percentage of revenue to ease in the second half, which should lead to stronger margins.

In light of this and the end of lockdowns, it is forecasting full year EBITDA in the range of $27 million to $30 million excluding acquisition costs and benefits. This will be up from $19.1 million in FY 2021.

Management commentary

Aussir Broadband’s Managing Director, Phillip Britt, commented: “We’re very pleased with how all segments have performed across the quarter, despite the Christmas period impacting residential sales slightly. The business segment remained strong. So far in 1H FY22 we have taken 15% of all NBN enterprise ethernet net service activation orders. We continue to be excited about our Carbon platform (our self-service platform for business), it now has more than 10,000 active services and over 400 MSPs (managed service providers) onboarded.”

“Whilst first half EBITDA has been impacted by increased promotional costs, and CVC expense due to lockdowns, we expect to see the benefits of operating leverage in 2H FY22 with employee, marketing and administration expenses expected to be lower as a percentage of revenue. The second half will also benefit from the organic connection growth achieved in the first half, additional white label migrations, and operating leverage to produce a full year EBITDA in the range $27m to $30m. This validates our strategy of continuing to invest in connection growth at the expense of short-term EBITDA gains,” he concluded.

The post Aussie Broadband (ASX:ABB) share price higher after delivering 49% revenue growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband 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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Key points

• The fate of Sydney Airport shares will be decided this week as shareholders vote on a proposed $23.6 billion takeover
• Votes will be taken on Thursday morning AEDT, with the approval of 75% of investors needed for the acquisition to go ahead
• If shareholder approval is granted, Sydney Airport’s stock is expected to be removed from the ASX on 9 February

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The Sydney Airport (ASX: SYD) takeover will be voted on this week. If you own Sydney Airport shares, you’ll get to have your say.

If successful, the takeover will see Sydney Aviation Alliance – a consortium of investment funds – walk away with the airport on its books.

At market open today, the Sydney Airport share price is $8.66. That’s 1% lower than the consortium’s takeover offer of $8.75 per security.

Let’s take a look at what the market can expect from the listed airport this week.

Sydney Airport shareholders to vote on $23.6b takeover

Sydney Airport shares could be wiped from the ASX this fortnight. The airport’s board has already accepted the Sydney Aviation Alliance’s $23.6 billion takeover bid and is urging investors to do the same.

However, the airport’s shareholders still have the power to sink the proposal. They will vote on the takeover this Thursday at 11am AEDT.

For the proposed acquisition to go ahead, more than 75% of Sydney Airport’s shareholders must vote yes for the takeover. Additionally, another clause states 50% of voting members must vote in favour.

Anyone who held shares in Sydney Airport at 7am AEDT today is eligible to vote in the meeting. For interested readers, the takeover’s scheme booklet can be found here.

UniSuper has a 15.01% hold in Sydney Airport. It’s made a deal that will likely see it receive an equal holding in Sydney Aviation Alliance, rather than $8.75 per share in cash.

If the takeover is approved by shareholders, a second court date is expected to go ahead on 9 February. That will likely see the scheme approved and the takeover made effective.

If all goes to plan for the company’s board and the consortium, Sydney Airport shares will be removed from trade as of 9 February.

The board has recommended shareholders vote in favour of the takeover. It believes the all-cash offer is fair and will see investors without risks associated with their investment.

The airport’s passenger traffic numbers were still 69.7% lower than they were pre-pandemic in December of 2021.

That slump looks to have continued into the new year. Preliminary data suggests the airport saw 85% fewer international passengers and 58% fewer domestic travellers over the first 15 days of last month.

The post Own Sydney Airport (ASX:SYD) shares? The takeover goes to a shareholder vote this week. Here’s what you need to know appeared first on The Motley Fool Australia.

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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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With the S&P/ASX 200 Index (ASX: XJO) falling more than 8% so far this year, there certainly are plenty of discounted stocks out there.

But the trouble is, how do you know which ones are true bargains and which ones will languish?

Taking note of the “buy” conviction of a professional investor is one way to figure it out.

Morgans investment advisor Jabin Hallihan this week picked out one ASX share that he reckons could rise more than 48%, which he definitely rates as a buy.

‘Strong earnings growth’ with a PE ratio below 10

Silk Logistics Holdings Ltd (ASX: SLH) provides port-to-door logistics services for clients in many different industries.

The company only listed on the ASX back in July and has seen its share price tumble in recent weeks as a part of the general market sell-off.

The stock started Tuesday at $2.15.

“We buy Silk Logistics for exposure to the growing container logistics market in Australia,” Hallihan told The Bull. 

“The company offers strong earnings growth and is trading on an attractive price/earnings multiple below 10 times.”

Hallihan’s team has calculated the fair value for Silk Logistics is $3.19 per share, which is 48.4% above the current level.

He added that last week’s $10.5 million acquisition of smaller rival 101Warehousing could be a nice catalyst.

“The acquisition multiple looks attractive, and the purchase is funded mostly from issuing shares, so the balance sheet isn’t put under undue pressure.”

While analyst coverage for the $160 million company is sparse, Shaw & Partners also agrees with Morgans that Silk is a “strong buy”.

Silk Logistics is due to report its financials on 24 February.

“We target 1H22 EBITDA and NPAT growth of c.11% and 59%, respectively,” noted Morgans’ reporting season calendar.

“However, a looming uncertainty is the labour and container logistics supply chain constraints likely to have impacted the business in late 1H22/early 2H22.”

The post Buy this ASX share with 48% upside: expert 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

The Nasdaq Composite (NASDAQINDEX: ^IXIC) has taken a bigger hit this January than most of its large-cap index peers. Yet the hardest-hit stocks often see the biggest bounces, and that’s what Nasdaq investors are experiencing on Monday. As of 12:30 p.m. ET, the Nasdaq was up more than 2%, climbing back above the 14,000 mark as it attempts to rebound from a deep correction that took it to the brink of bear-market territory.

There are thousands of stocks listed on the Nasdaq, but its biggest components still have a big impact. This week, earnings season continues to play out, and two of the biggest companies in the world will report their latest quarterly results. What Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and Amazon.com (NASDAQ: AMZN) say about their respective performances in recent months could play a massive role in determining whether the Nasdaq continues to bounce or extends its downward move. Below, you’ll learn more about how each stock is faring as it heads toward its key release.

Alphabet searches for greatness

Shares of Alphabet were little changed on Monday afternoon, rising just a third of a percent. The search engine giant will release its latest results on or after the market closes on Tuesday.

Expectations from Alphabet shareholders are high, as most expect that the headwinds that so dramatically affected the company’s advertising revenue should continue to dissipate. The consensus forecast for revenue is a 27% year-over-year jump to $72.1 billion, with earnings expected to come in at $27.32 per share, up about 22% from year-ago levels.

Yet even if Alphabet does post strong results for the fourth quarter of 2021, that doesn’t necessarily guarantee that the stock will move higher. That’s because many companies have seen that new issues like inflationary pressures and supply chain challenges are restraining their projections for future growth in 2022. With key Alphabet businesses like Google Search and YouTube relying on healthy businesses to spend money on advertising, anything that pressures those businesses into pulling back on their marketing spending could have a ripple effect that might lead Alphabet to warn investors about what 2022 could look like.

Alphabet shares lagged behind its FAANG stock  peers for many years before finally making up some ground in 2021. Investors are hopeful that the Google parent can keep up positive momentum and make 2022 a year to remember.

Will Amazon follow Netflix’s lead?

Elsewhere, shares of Amazon were up almost 3%. The e-commerce and cloud-computing behemoth won’t reveal its results until Thursday afternoon, but already, there’s a lot of buzz surrounding what Amazon’s next business move could be.

Unlike Alphabet, Amazon is likely to see some of its key metrics pull back from year-ago levels. Although revenue is seen rising nearly 10% year over year to $137.6 billion, earnings projections for $3.71 per share would be a nearly 75% drop for what Amazon’s bottom line looked like during last year’s fourth quarter as pandemic-induced restrictions led to unprecedented levels of e-commerce activity.

Amazon has already tried to rein in expectations from its shareholders as it deals with a host of potential obstacles. CEO Andy Jassy’s comments after its third-quarter earnings report suggested that difficulties in finding workers, higher wage costs, global supply chain issues, and rising freight and shipping costs would all combine to put pressure on Amazon’s profitability. The company highlighted its commitment to ensure the customer experience would remain positive whatever it took. Yet some believe that Amazon could follow the lead of Netflix (NASDAQ: NFLX) and raise prices on the Amazon Prime service in an effort to boost high-margin subscription revenue.

Both Amazon and Alphabet have seen their shares pull back substantially during the first month of 2022. That could arguably put them in a better position to bounce higher if their results are solid. Yet, as we’ve seen from other large-cap companies, everything depends on just how much shareholders want to see in terms of future growth potential to justify the current share prices of the Nasdaq giants’ stocks. 

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

The post Alphabet and Amazon will make or break the Nasdaq this week appeared first on The Motley Fool Australia.

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Dan Caplinger owns Alphabet (A shares), Alphabet (C shares), and Amazon. John Mackey, 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Alphabet (A shares), Amazon, and Netflix. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The S&P/ASX 200 Index (ASX: XJO) had one of its worst months in recent memory in January after investors panicked over potential rate increases in the United States. The benchmark index lost 6.4% of its value during the period and closed at 6,971.6 points.

While a good number of shares dropped lower with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 last month:

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was the worst performer on the ASX 200 last month with a 31.1% decline. This was driven by significant weakness in the tech sector and a subdued response to the sports betting company’s second quarter update. In respect to its update, PointsBet reported an 11% increase in group turnover to $1,326 million and net win growth of 61% to $71.9 million. However, its operating loss widened to $51.8 million.

Kogan.com Ltd (ASX: KGN)

The Kogan share price wasn’t far behind with a 29.8% decline during the period. Investors sold off the ecommerce company’s shares in response to another disappointing trading update. That update revealed that Kogan delivered a 9% lift in first half gross sales (thanks to the inclusion of the acquired Mighty Ape business) and a 58% decline in EBITDA to $21.7 million. Management blamed the weak result on supply chain challenges, higher logistic costs, and its investment in marketing.

Megaport Ltd (ASX: MP1)

The Megaport share price was out of form and sank 27.8% last month. Investors were selling the elastic interconnection services provider’s shares amid weakness in the tech sector and the release of its second quarter update. According to the release, Megaport posted a quarter on quarter monthly recurring revenue (MRR) increase of $0.6 million to $9.2 million. This led to an 8% increase in second quarter revenue to $26.6 million. While its revenue was in line expectations, a number of brokers cut their valuations in response to expectations of a higher investment spend.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price was sold off and sank 27.8% during the period. Once again, weakness in the tech sector played a role in this decline. As did a broker note out of Morgans. Early in the month, its analysts downgraded the health imaging company’s shares to a reduce rating on valuation grounds. However, due to its share price weakness, the broker has since upgraded its shares twice. Firstly to a hold rating and then up to an add rating.

The post These were the worst performing ASX 200 shares in January appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares in January
• Why the share market pessimists are wrong
• 5 things to watch on the ASX 200 on Tuesday
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• Why have ASX energy shares become such hot property in 2022?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd, MEGAPORT FPO, Pointsbet Holdings Ltd, and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd and Pro Medicus Ltd. The Motley Fool Australia has recommended MEGAPORT FPO and 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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It was a month to forget for the S&P/ASX 200 Index (ASX: XJO) in January. During the period, the benchmark index lost 6.4% of its value to close at 6,971.6 points.

Fortunately, not all shares were dragged lower by the market selloff. Some even recorded solid gains during the month. Here’s why these were the best performers on the ASX 200 in January:

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price was the best performer on the ASX 200 last month with an 18.6% gain. Investors were buying the Canadian iron ore miner’s shares following the release of its third quarter update. While Champion Iron reported a 23% decline in revenue to C$253 million and a 43% reduction in EBITDA to C$122.1 million, this was ahead of expectations thanks to higher iron ore prices. Goldman Sachs was only expecting EBITDA of C$87 million for the three months.

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price wasn’t far behind with a gain of 17.5% in January. This gain appears to have been driven by rising oil prices and the release of a number of bullish broker notes in response to its quarterly update. In respect to the latter, Morgans is one of the broker’s that was pleased with its performance. Its analysts retained their add rating and increased their price target to $1.72. Morgans suspects that Beach could upgrade its guidance with its half year results.

AGL Energy Limited (ASX: AGL)

The AGL Energy share price was on form and charged 15.6% higher over the period. The catalyst for this appears to have been a broker note out of Credit Suisse. According to the note, the broker upgraded the energy company’s shares to an outperform rating with a lofty price target of $8.50. This compares to the end of month AGL share price of $7.10. It appears to believe AGL is over the worst of its issues now.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price was a positive performer and recorded a 14.3% gain in January. Rising oil prices, optimism over its merger with the petroleum assets of BHP Group Ltd (ASX: BHP), and a strong fourth quarter update boosted its shares last month. In respect to the latter, Woodside delivered an 86% quarter on quarter increase in sales revenue to US$2,852 million. This was driven by a 22% increase in sales volume to 31.8mmboe and a 53% lift in its average realised price to US$90 per barrel of oil equivalent.

The post These were the best performing ASX 200 shares in January appeared first on The Motley Fool Australia.

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