Tag: Motley Fool

Key points

• The IAG share price traded up today
• IAG has made a solid start to the year having rallied as much as 6% in this time
• Most of the brokers covering the company have IAG as a buy right now
• Over the last 12 months, shares are still down more than 13%

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The Insurance Australia Group Ltd (ASX: IAG) share price finished less than 2% in the green today at $4.34 apiece.

In fact, IAG has made a solid start to the year, amid the market turbulence that’s ensued since January 1. Shares are up almost 2% since then, having rallied as much as 6%.

As seen on the chart below, IAG was matching the S&P/ASX 200 Financials Index (XFJ) until the new year, where it then crossed over and took off. The company now leads the index after trailing it for the entirety of 2021. That could be important, as IAG is now generating its own return separate from the market return.

With a shifting regime in macroeconomic policy abundantly clear, investors are wondering where might be the best place to protect their hard earned capital.

We’ve gone to the experts to see what the current sentiment on IAG is, and from what it appears, the outlook is overwhelmingly bullish. Let’s take a look.

IAG is a buy, these brokers say

Credit Suisse expect IAG to outperform this year and rates it as a buy, valuing the company at $5.94 per share in a January note.

The broker reckons that IAG should absorb any peril costs well this year and is attracted to the insurance giant’s valuation on current figures.

Citi reckons IAG is a buy now as well, noting that the company’s share price is coming off a low base in 2021 and should perform better in 2022.

Meanwhile, the team at investment bank JP Morgan are also constructive on IAG shares and advocated clients to load up on the company in a note from this month.

The broker values IAG at a premium of $5.45 per share and feels that sentiment will improve given a number of sub-factors regarding the company’s earnings profile.

“IAG has a strong position in the Australian and NZ personal lines market, but has suffered in recent times from concerns around COVID-19 Business Interruption losses and concerns on market share losses in personal lines”, JP Morgan says.

“Short- to medium-term margin pressures have proved challenging for IAG, including higher reinsurance costs, lower yields, higher natural perils and reducing reserve releases”.

But the macro-environment could be improving for IAG, says JP Morgan. With the interest rate cycle looking set for a change in regime, the broker reckons that these points could be a net positive for IAG.

“The cycle is turning favourable for IAG in the commercial lines segment”, the broker added, noting that the “favourable [business interruption] BI second test case ruling suggests possibly a very large release” of approximately $1.2 billion to the company.

Each of Macquarie, Jarden and Morgans also rate IAG as a buy right now, valuing the company at $5.10, $5.50 and $5.23 per share respectively.

In fact, in a list of analysts provided by Bloomberg Intelligence, approximately 67% of firms have IAG as a buy right now, whereas just 16.7% each have it as a hold and sell.

A bit more on the IAG share price

The consensus valuation derived from this list is $5.19 per share, implying a 19% upside potential at the time of writing should the bull thesis play out.

IAG shares have started the year well and are climbing nicely into the green since January 1. However, over the last 12 months, shares are still down more than 13%.

The post Here’s what 67% of brokers think of the current IAG (ASX:IAG) share price appeared first on The Motley Fool Australia.

More reading

• Own IAG (ASX:IAG) shares? Here’s what you’re really invested in
• Leading brokers name 3 ASX shares to sell today
• Could this help take pressure off IAG (ASX:IAG) shares in the future?
• Why this broker tips IAG (ASX:IAG) shares as a buy in 2022
• Why is the IAG (ASX:IAG) share price having a rollercoaster start to the year?

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

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/heres-what-67-of-brokers-think-of-the-current-iag-asxiag-share-price/

Key points

• The Woolworths share price jumped 3.53% on Friday
• The supermarket giant has been recognised as the most valuable Australian brand
• The S&P/ASX 200 Consumer Discretionary Index ascended 3.27% today

The Woolworths Group Ltd (ASX: WOW) share price finished in the green today despite recent COVID-19 uncertainty.

The company’s share price finished the week at $1.19, up 3.53% on yesterday’s close. Meanwhile, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) elevated 3.27%.

Let’s take a look at what’s been happening at the company lately.

Brand recognition

Woolworths has just been recognised as the most “valuable” Australian brand and the second “strongest” brand in a report by Brand Finance Australia. This could stand the company in good stead amid the current climate of uncertainty due to COVID-19.

The supermarket giant achieved a 9% surge in brand value to $13.7 billion. Despite Woolworths facing supply challenges during the Omicron wave, the report said:

Holding a 33% market share, Woolworths has been pivotal in keeping the supply chain going throughout the pandemic.

Over the last year, the brand has demonstrated an ability to adapt to the shifting retail landscape, expanding its online capability to better serve its large customer base.

The brand’s strong reputation, loyal customers, and lower risk over the last year helped to navigate any potentially detrimental effects to its brand value caused by Endeavour Group’s demerger, of which Woolworths owned 15%.

It’s the third successive year Woolworths has taken out the top spot. Telstra Corporation Ltd (ASX: TLS) was ranked the second most valuable brand, with BHP Group Ltd (ASX: BHP) third.

Coles Group Ltd (ASX: COL) achieved a 26% surge in brand value to $9.9 billion and was ranked fourth on the list. The Coles share price increased 5.02% today.

In the “strongest” brand category, Woolworths came in second after Bunnings, owned by Wesfarmers Ltd (ASX: WES). Another Wesfarmers business, Officeworks, took third place, with Coles again in fourth.

Brand Finance says it determines the relative strength of brands “through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance”.

There has been little news from Woolworths since the start of the year. Its only release to the market came on January 7, when it announced it had pulled out of the race to acquire pharmacy chain operator Australian Pharmaceutical Industries Ltd (ASX: API).

Woolworths share price snapshot

The Woolworths share price may have gained nearly 4% for the day, but it has fallen 8% since the start of the year.

Its shares have fallen 7.5% over the past month, and 3.6% over the past 12 months.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% over the past year.

Woolworths has a market capitalisation of roughly $42.2 billion based on its current share price.

The post Could this help Woolworths (ASX:WOW) withstand the current climate of uncertainty? appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares that smash term deposits
• Why is the Woolworths (ASX:WOW) dividend smaller than Coles?
• Are ASX consumer staples shares really ‘safe’ to hold in a market selloff?
• 2 ASX dividend shares Morgans rates as buys
• Here are 3 ASX dividend shares with grossed-up yields over 5%

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

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/could-this-help-woolworths-asxwow-withstand-the-current-climate-of-uncertainty/

Today, the S&P/ASX 200 Index (ASX: XJO) fought back against the selling pressure throughout the day to finish in the green. At the end of trade, the benchmark index was 2.19% higher at 6,988.1 points.

In stark contrast to the rest of the week, all 11 sectors of the Australian share market were firmly in the positive by the end of today.

The best performing sector was consumer discretionary, posting a 3.27% gain in a single session. Consumer staples were right behind it, with exceptional gains in the big supermarket chain operators. Energy shares also managed to avoid the red today despite oil prices slipping overnight.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Imugene Ltd (ASX: IMU) was the biggest gainer today. Shares in the drug developer jumped 10.53% after announcing a clinical trial supply agreement with Swiss healthcare company, Roche. Find out more about Imugene here.

The next biggest gaining ASX share today was Champion Iron Ltd (ASX: CIA). The iron ore producer lifted 8.75% higher as brokers responded positively to the company’s recent quarterly update. Uncover the latest Champion Iron details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Imugene Ltd (ASX: IMU)	$0.315	10.53%
Champion Iron Ltd (ASX: CIA)	$6.34	8.75%
Insignia Financial Ltd (ASX: IFL)	$3.55	7.90%
Pro Medicus Ltd (ASX: PME)	$44.80	7.23%
Eagers Automotive Ltd (ASX: APE)	$12.58	6.88%
Breville Group Ltd (ASX: BRG)	$27.52	6.83%
Event Hospitality and Entertainment Ltd (ASX: EVT)	$13.54	5.95%
NEXTDC Ltd (ASX: NXT)	$10.39	5.80%
Pinnacle Investment Management Group Ltd (ASX: PNI)	$10.39	5.58%
Nib Holdings Ltd (ASX: NHF)	$11.36	5.57%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?
• Imugene (ASX:IMU) share price leaps 10% on new Roche deal
• When it comes to ASX shares, is it possible to pick the bottom?
• These 3 ASX 200 shares are topping the volume charts this Friday
• Why Champion Iron, Dusk, Hipages, and Imugene shares are charging higher

Motley Fool contributor Mitchell Lawler owns Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended PINNACLE FPO and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended PINNACLE FPO and Pro Medicus Ltd. The Motley Fool Australia has recommended NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/here-are-the-top-10-asx-shares-today-28-january-2022/

If you’re looking for some new additions, then you may want to look at the shares listed below.

Both of these ASX shares have been named as buys by analysts this week. Here’s why they could be in the buy zone right now:

Nearmap Ltd (ASX: NEA)

The first ASX share for investors to look at is Nearmap. It is a growing aerial imagery technology and location data company. Nearmap provides businesses in the ANZ and North American markets with instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.

While its growth has been a little inconsistent over the last five years, this was driven largely by its dependence on several large customers. With its customer base now more evenly spread, Nearmap’s growth has been smoother. The good news is that management is confident in its growth trajectory from here and is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term.

Earlier this week, analysts at Citi upgraded Nearmap’s shares to a buy rating with a $2.10 price target. Citi expects Nearmap’s cash burn to peak in FY 2022, which it feels could boost investor sentiment.

REA Group Limited (ASX: REA)

A final ASX share to look at is REA Group. It is the digital advertising company that operates Australia’s leading property website, realestate.com.au. It also operates a number of complementary businesses, such as mortgage broking, in the Australian market and internationally.

Although market conditions have been up and down over the last few years, the resilience of its business model allowed REA Group to continue its growth.

The team at Goldman Sachs appear confident this trend will continue. This morning the broker put a buy rating and $168.00 price target on REA’s shares. Goldman is expecting REA to deliver first half profit growth of 32% to $226.7 million.

The post Analysts name 2 ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Top broker tips REA (ASX:REA) shares as a buy ahead of a ‘very strong result’
• 3 ASX shares brokers have named as buys
• Why are these beaten-up small cap ASX tech shares seeing 52-week lows today?
• Top brokers name 3 ASX shares to buy next week
• Is the REA Group (ASX:REA) share price a clear buy after dropping 14% in less than 3 weeks?

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 Nearmap Ltd. The Motley Fool Australia owns and has recommended Nearmap Ltd. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/analysts-name-2-asx-shares-to-buy-right-now/

Key points

• The ASX 200 took a hit following comments from the United States Federal Reserve chair Jerome Powell
• Expectations of interest rates being lifted in the US earlier is spilling over into the ASX
• Major Australian banks now forecast rate hikes to occur this year

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It’s been a tough few days for the S&P/ASX 200 Index (ASX: XJO). On Thursday, the market took another nose-dive after the United States Federal Reserve chair Jerome Powell made hawkish remarks about inflation.

The market is worried that central banks will be forced to bring forward interest rate increases faster than expected. This has left the ASX 200 in pain, as investors take note of Powell’s signals.

But why have Australian shares been reacting to the comments of Jerome Powell? After all, he is the chair of a central bank in the United States, not Australia.

Two markets cut from the same cloth

While the decisions made by Jerome Powell involve the monetary policy of a different country, Australia — and much of the developed world — is in the same boat.

Whether it is a product of globalisation, or a coincidence, Australia and the United States are both experiencing increased inflation. This in itself isn’t much of a surprise — in fact, central banks were targeting an increase in inflation.

A rebound in inflation would indicate a strengthening of the economy. For example, an increase in wages can suggest a reduction in unemployment. Furthermore, higher living costs may infer households are spending more money — a sign consumer confidence is higher.

However, inflation remains a balancing act for central banks. Let it run too hot and costs can get out of hand. But, if the hammer is brought down too hard and fast, all the economic strengthening can quickly be undone.

This is a tight rope that central banks have been trying to walk since the beginning of the COVID-19 pandemic. To date, Jerome Powell has opted to let inflation push above the target range. Similarly, our own chair of the Reserve Bank of Australia, Philip Lowe, has been cautious to suggest any rate rise in the near future.

Although, this has suddenly changed for Powell after US inflation reached 7% in December. In response, the chair hinted at its first interest rate rise occurring as early as March this year. The abrupt change of plans to the previously peddled roadmap has caught the ASX 200 index off guard.

Now, ASX investors are wary an interest rate rise could be happening sooner than previously expected in Australia.

What ASX 200 banks are forecasting for interest rates?

Soon after Jerome Powell’s revised rate expectations, more revisions flowed from the major banks on their forecasts for Australia rates.

The National Australia Bank Ltd. (ASX: NAB) revealed to investors yesterday that the RBA could move to lift rates in November this year. Following this, additional increases in interest rates could happen in December 2022 and February 2023.

Meanwhile, another ASX 200 bank — Westpac Banking Corp (ASX: WBC) beat the Federal Reserve to the punch line and announced its expectations for the first rate increase in August this year. The major bank provided this forecast on 20 January, nearly a week before Powell’s comments.

The post Why is it when Jerome Powell sneezes, the ASX 200 catches a cold? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• When it comes to ASX shares, is it possible to pick the bottom?
• These 3 ASX 200 shares are topping the volume charts this Friday
• This world-famous fund manager is ‘buying the dip’. Here’s why
• Top 2 ASX 200 shares of the year so far revealed

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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/why-is-it-when-jerome-powell-sneezes-the-asx-200-catches-a-cold/

Key points

• NAB shares finished Friday higher following an uptick on the ASX
• The bank made the cut for the world’s most sustainable corporations
• NAB is actively pursuing its goal to achieve net-zero emissions

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The National Australia Bank Ltd (ASX: NAB) share price closed higher on Friday. This comes after the company released a statement earlier in the week regarding its global sustainability ranking.

At the closing bell, the banking giant’s shares were up 1.47% at $27.65 apiece.

Let’s take a closer look at what the company had to say to investors.

NAB highlights its commitment to climate action

The NAB share price finished the day higher following positive investor sentiment across the market. The S&P/ASX 200 Index (ASX: XJO) rebounded strongly to end the day 2.19% higher after spending the week in the red.

On Monday, the bank put out a media release highlighting its spot among the world’s most sustainable corporations.

NAB was ranked 71 out of nearly 7,000 companies, based on financial and sustainability performance. It’s worth noting it was the only Australian bank to make the cut and just one of three Australian companies.

NAB group executive, corporate and institutional banking, David Gall, commented:

With 50 per cent of the rating based on a company’s clean revenue and investments, our role as the leading Australian bank for lending to renewables plays an important part in our ranking.

Renewables represent 71 per cent of our total lending to energy. Since 2003 we’ve completed 150 renewable financing transactions and lent over $11.5 billion.

Climate action is everyone’s job. We need to be part of the solution and support our customers as they take action too.

Last year, environmental, social and governance (ESG) issues took focus across businesses, government and investors.

Following the United Nations’ climate summit in November, around 90% of countries have made pledges to cut emissions. In addition, hundreds of major corporations have in place a net-zero target within the next three decades. 

NAB, in particular, has a goal to align its lending portfolio with net-zero emissions by 2050. It is the first Australian bank to sign the Collective Commitment to Climate Action. This will see the bank managing its portfolio to align with the Paris Agreement goal of limiting global warming.

NAB share price summary

Despite recording a negative performance in 2022, the NAB share price has risen by 15% over the last 12 months.

Its shares reached a 52-week high of $30.30 after the release of its FY21 results last November before retreating. It’s worth noting that even at today’s prices, the company’s shares are trading at pre-COVID-19 levels.

NAB commands a market capitalisation of roughly $89.81 billion, making it the fourth largest company on the ASX.

The post NAB (ASX:NAB) is the only Aussie bank on this international list of 7,000 companies. Here’s why appeared first on The Motley Fool Australia.

More reading

• Own NAB (ASX:NAB) shares? Here’s why the bank could be facing a $200m class action
• What’s happening to ASX bank shares today?
• 2 ASX dividend shares with large and growing yields
• Does the NAB (ASX:NAB) share price make it the best value bank right now?
• 2 buy-rated ASX dividend shares with generous yields

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

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/nab-asxnab-is-the-only-aussie-bank-on-this-international-list-of-7000-companies-heres-why/

Key points

• The Neometals share price gained 8% on Friday, ending the session at $1.35
• The gain followed the release of the company’s report for the December quarter
• Over the productive 3-month period, the company continued developing its many ventures

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The Neometals Ltd (ASX: NMT) share price was on the move today after the company released its quarterly activities and cash flow reports.

As of Friday’s close, the Neometals share price is $1.35. That’s 8.4% higher than it was at the end of Thursday’s session.

Neometals share price surges after productive quarter

• Neometals ended the period with $72.8 million of cash and no debt
• The company’s lithium-ion recycling technology venture progressed its demonstration plant and signed an agreement to enter North America
• Its Eli Lithium Process Project achieved a milestone agreement to build a pilot plant
• Progress continued at the Barrambie Titanium Vanadium Project and Vanadium Recovery Project.

Primobius

Primobius — Neometals’ joint venture with SMS Group GmbH — made strides with the demonstration plant for its lithium-ion battery recycling technology.

It also advanced a memorandum of understanding with steel producer and recycler, Stelco, which is a wholly-owned subsidiary of Canadian group Stelco Holdings Inc (TSX: STLC). The pair made a formal agreement to commercialise the recycling technology in North America.

Stelco has licensed the recycling technology to fast-track its feedstock supply arrangements. Primobius has an option to acquire up to 50% of the resulting recycling entity.

ELi Lithium Process Project

Meanwhile, at the ELi Lithium Process Project – owned 70% by Neometals and 30% by Mineral Resources Limited (ASX: MIN) – an agreement was made with Portuguese chemical company, Bondalti Chemicals.

Bondalti will co-fund and construct an electrolysis pilot plant at its chemical complex.

The plant will help the companies decide whether to form a joint venture to build and operate a lithium refinery in Portugal.

Barrambie Titanium Vanadium Project and Vanadium Recovery Project

There was also good news from Neometals’ upstream activities over the December quarter.

The company prepared Barrambie mixed gravity concentrate samples for commercial smelting trials in China.

Additionally, the project’s pre-feasibility study is expected to be released this quarter.

Finally, at the company’s Vanadium Recovery Project – a 50:50 venture with the unlisted Scandinavian mineral development company, Critical Metals – engineering process data was prepared for its feasibility study.

The project’s development activities, including offtake, carbon capture, and other business activities, also continued to advance over the quarter.

What else happened in the December quarter?

On top of all of the above activities, Neometals dropped its second sustainability and environmental, social, and governance (ESG) report last quarter.

Finally, the company waved goodbye to its founder, David Reed. Reed retired from the company’s board in November.

What’s next for Neometals?

The ASX company is continuing to work towards its listing on the London Stock Exchanges’ AIM market in the current quarter.

Additionally, each of Neometals’ businesses is continuing to work towards their respective production goals. There is certainly plenty of news to look out for from Neometals over the coming year.

Neometals share price snapshot

The Neometals share price gained a whopping 66% over the December quarter.

Unfortunately, 2022 hasn’t been so kind. The shares have slipped 18% year to date.

Still, the Neometals share price is 310% higher than it was this time last year.

The post Here’s why the Neometals (ASX:NMT) share price flew 8% today appeared first on The Motley Fool Australia.

More reading

• Why is the Neometals (ASX:NMT) share price rocketing 16% today?
• Neometals (ASX:NMT) share price explodes 15% on battery recycling update
• Why Bega Cheese, Magnis, Mesoblast, and Neometals shares are pushing higher

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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/heres-why-the-neometals-asxnmt-share-price-flew-8-today/

If you’re interested in gaining exposure to the banking sector, then it could be worth considering Bank of Queensland Limited (ASX: BOQ) shares.

That’s the view of the team at Goldman Sachs, which see a lot of value in the regional bank’s shares at the current level.

What did Goldman say about Bank of Queensland’s shares?

According to a recent note, the broker has retained its buy rating and put a $9.67 price target on the bank’s shares.

Based on the current Bank of Queensland share price of $7.71, this implies potential upside of 25% over the next 12 months.

In addition, the broker is forecasting a fully franked 44 cents per share dividend in FY 2022. If you add this 5.7% dividend yield into the equation, the total potential return on offer is approximately 31%.

Why is the broker bullish?

Goldman Sachs was pleased with the bank’s recent annual general meeting update and notes that management has reaffirmed its FY 2022 guidance of at least 2% positive jaws (revenue growth versus expense growth).

The broker commented: “Our recently revised FY22E revenue growth on pro-forma FY21A had been 1.2% and costs of -0.4%. This compares to their updated implied revenue growth guidance of +1% (i.e. at least 2% positive jaws guidance) and expenses of -1%. Therefore, with costs run-rating mildly better than we had expected, we make minor revisions to our FY22/FY23/FY24E EPS of +0.5%/+0.4/+0.1% and our TP moves to A$9.67 from A$9.66.”

In addition, Goldman highlights that it likes the regional bank due to its margin pressure offsets, the ME Bank acquisition, and its attractive valuation.

“Overall we maintain our Buy recommendation on BOQ, which we believe has more offsets to these mortgage NIM pressures in the form of i) BOQ’s more rate sensitive deposit book, and ii) the continued delivery of ME Bank synergies. Coupled with 33% TSR [now ~31%] to our revised TP, we stay Buy,” it added.

The post Goldman tips Bank of Queensland (ASX:BOQ) share price to rise 25% appeared first on The Motley Fool Australia.

More reading

• What’s happening to ASX bank shares today?
• What do rising bond yields mean for the Bank of Queensland (ASX:BOQ) share price in 2022?
• How are ASX bank shares performing today?
• Here’s what happened to the Bank of Queensland (ASX:BOQ) share price in 2021?
• 2 ASX dividend shares rated highly by analysts

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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/goldman-tips-bank-of-queensland-asxboq-share-price-to-rise-25/

Key points

• The IPO outlook for 2022 is optimistic
• Last year saw the highest number of new floats on the market in the last decade
• Majority of new ASX listings were in the materials sector

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The 2022 year could be a positive one for initial public offerings (IPOs) and new listings on the ASX. This follows a record number of new entrants onto the ASX boards in 2021.

The 2022 IPO Watch Australia Report released by HLB Mann Judd Advisory and Accounting showed the largest number of new floats in a decade last year.

Let’s take a look at what the report divulged.

Positive outlook for IPOs in 2022

New listings on the ASX in 2022 are on a positive trajectory, HLB Mann and Judd revealed. It is optimistic about the outlook for IPO activity in the early months of the year, especially in the materials sector.

The report stated:

There was a significant number of IPOs which came to market in the final quarter of 2021, and the pipeline continues to look strong for early 2022.

There were 27 companies which had applied for listing to the ASX at year end, a significant increase from the 14 that had applied at the same time last year.

These companies are hoping to raise $250.4 million in total, an increase from the $171.0 million sought the previous year.

Of these proposed listings, 17 were in the materials sector. And 76% of the materials listings involve gold projects, the report stated. Meanwhile, 3 are in the consumer services sector and five are in the technology sector.

The largest proposed listing is US Student Housing REIT, which is looking to raise $45 million, and the second biggest is Beforepay Group Ltd, which is seeking £35 million. Beforepay (ASX: B4P) listed on the ASX on 17 January.

US Student Housing is proposing to list on the ASX on 16 February with the ticker USQ.

What happened in 2021?

In 2021, there were 191 new listings on the ASX, raising $12.33 billion. This was more than double the funds raised in 2020.

This was a record for the decade and more than 2019 and 2020 combined. In 2020, the first year of the COVID-19 pandemic, just $4.98 billion was raised via IPOs.

The three biggest IPOs in 2021 accumulated $3.34 billion, which was 27% of the total funds for the year.

However, small caps made up the bulk of market entrants, at 76%, or 145. Materials companies made up 68% of all small-cap IPOs.

A total of 107 materials companies were listed, representing the majority — 56% — of all new ASX listings. However, this represented only 18% of total funds raised.

In total, 12 of the listings were foreign companies compared to 9 in 2020. Five were from the United States.

The new companies were also shown to receive strong support, with 87% of new floats achieving their subscription targets.

The post New listing mania: Could 2022 be another record year for ASX IPOs? appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/new-listing-mania-could-2022-be-another-record-year-for-asx-ipos/

Key points

• Pure Hydrogen stock is soaring on the ASX today
• The company has entered a joint venture in India to supply hydrogen-powered vehicles
• The Pure Hydrogen share price has increased by 163% in just 6 months

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The Pure Hydrogen Corporation CDI (ASX: PH2) share price is up a whopping 30% today.

Why? The Sydney-based hydrogen and fuel cell technology company has announced its clean energy interests will be extending into the Indian market.

At the time of writing, the Pure Hydrogen share price is up 30.14% at 48 cents.

Pure Hydrogen share price soars on JV news

This morning, Pure Hydrogen announced that H2X Global Limited (a company in which it holds the largest interest at 24%), has entered a binding agreement to establish a joint venture company with Advik Hi-Tech Pvt. Ltd.

Together, the companies will build hydrogen-powered fuel cells, generators, and vehicles for use in India.

Pure Hydrogen hopes the collaboration will establish a “global supply chain of products and components”. It estimates that the first generators will be delivered within the next few months.

In addition, production is underway on H2X’s series of fuel cell-powered generators. Two in Australia are already made and ready for deployment.

H2X CEO Brendan Norman said the move into India “gives us great strength in being able to capitalise on opportunities within India”. He added that it will “provide us with a strong manufacturing backbone to support our production”.

Comment from Pure Hydrogen management

Pure Hydrogen managing director Scott Brown said:

This is an excellent partnership and key milestone in H2X’s development.

Pure Hydrogen have a preferred supplier agreement with H2X, and together with our shareholding in the business, it paves the way for Pure to pursue other opportunities in India in its own right or together with the JV Company.

India has many of the same drivers in Australia — hydrogen is an ultra-clean fuel that can be supplied domestically at a lower cost than imported fuels — thereby offering an incentive for businesses to switch. Business can be environmental (sic) responsible and reduce their running costs.

Pure Hydrogen share price snapshot

Over the past 6 months, the Pure Hydrogen share price has increased by 163%. It hit its lowest price of 16 cents in August and its highest price of 75 cents in November.

Pure Hydrogen has a market capitalisation of $160.8 million. There are 338 million shares on issue.

The post Why the Pure Hydrogen (ASX:PH2) share price is rocketing 30% today appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best performing ASX hydrogen shares of 2021

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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/why-the-pure-hydrogen-asxph2-share-price-is-rocketing-30-today/