Tag: Motley Fool

Key points

• AGL was one of the worst performing ASX 200 shares of 2021
• But 2022 has given this company a fresh start
• That’s despite the ASX 200 going into correction territory…

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As investors of AGL Energy Limited (ASX: AGL) would know, 2021 was not a great year for the ASX stalwart. In fact, with its 48.6% share price decline over the year that was, AGL was one of the 5 worst-performing shares on the S&P/ASX 200 Index (ASX: XJO) last year.

But in a surprise turnaround, this embattled energy generator and retailer has had what could be described as an unbelievably positive start to 2022. As my Fool colleague Bernd covered earlier today, AGL shares are one of the best ASX 200 performers over 2022 thus far. AGL shares are up a very pleasing 11.4% year to date. That includes the 0.3% the shares have added so far today at the time of writing, up to $7.02 a share.

And of course, that has occurred at the same time the ASX 200 has fallen off the proverbial cliff over 2022 so far, entering ‘correction territory’ just this week.

So AGL has quickly gone from a 2021 zero to a 2022 hero (so far, anyway). So what’s behind this ‘comeback kid’ tale?

AGL shares go from (not quite) zero to hero

Well, it’s not entirely clear why investors have changed their minds over AGL shares. It’s possible that the bevvy of positive broker recommendations we have seen have assisted. As my colleague covered, AGL has been the beneficiary of some love from not one, but two ASX brokers over January. Credit Suisse and JP Morgan have both given AGL shares a buy rating this month. Credit Suisse sees AGL at $8.560 a share in the next 12 months, while JP Morgan is estimating the company will reach $7.55.

The brokers point to AGL’s inherent defensiveness, as well as recovering global energy markets, as the reasons why they see the company heading higher from here.

Another factor that might be at play is AGL’s valuation is having a blue-chip share like AGL descend more than 70% over the past 5 years is a meaningful move. It’s possible that when the company hit a multi-decade low of $5.10 a share late last year, value investors decided that it was too cheap to ignore. Since those lows, the AGL share price is now up more than 36%.

Whatever the reason, we can’t escape the fact that AGL shareholders have now enjoyed the best couple of months for this share that we have seen in years. No doubt investors will be hoping the train keeps rolling, but we shall have to wait and see.

At the current AGL share price, this company has a market capitalisation of $4.63 billion, with a trailing dividend yield of 9.25%.

The post Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling? appeared first on The Motley Fool Australia.

More reading

• Top 2 ASX 200 shares of the year so far revealed
• Why AGL (ASX:AGL) and Origin (ASX:ORG) shares tumbled today
• Own AGL (ASX:AGL) shares? JP Morgan is overweight, tips 23% upside in 2022
• Here’s why BlackRock plans to keep these carbon intensive ASX 200 shares
• What will AGL (ASX:AGL)’s 2022 dividend yield look like?

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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/why-are-agl-shares-having-such-a-stellar-start-to-2022-while-the-asx-200-is-struggling/

There are a lot of dividend options for investors to choose from on the Australian share market. To narrow things down, listed below are two dividend shares that are highly rated right now.

Here’s what analysts are saying about these ASX dividend shares:

Adairs Ltd (ASX: ADH)

This furniture and homewares retailer’s shares have come under significant pressure this year due to its disappointing performance during the first half caused by COVID lockdowns.

However, the team at Morgans has told investors that now is not time to throw in the towel. While disappointed with its first half performance, it believes the selling of the Adairs share price was overdone and has created a buying opportunity.

Morgans commented: “Today’s trading update was a disappointment and has led us to lower expectations for full year earnings. The share price reaction to the statement was, however, greater than we had thought appropriate.”

The broker has an add rating and $3.70 price target on its shares. This compares to the latest Adairs share price of $3.03. And with Morgans forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023, this will mean yields of 6.3% and 8.6%, respectively.

Premier Investments Limited (ASX: PMV)

The team at Bell Potter believe this retail conglomerate’s shares could be a good option for income investors. Particularly given its strong performance during the first half of FY 2022 despite losing 42,000 trading days to COVID lockdowns.

In response to its better than expected update, Bell Potter retained its buy rating and lifted its price target to $32.00. Pleasingly, the broker appears confident its positive form can continue.

It commented: “PMV has been an outperformer throughout COVID-19, demonstrating resilient sales performance underpinned by market leading omni-channel capabilities that leverage off a wholly owned DC. We see several key positive catalysts over the next 12-24 mths including the continued rebound in Smiggle, the potential launch of Peter Alexander in new offshore markets, plus M&A opportunities. We retain our Buy rating on the stock.”

Bell Potter estimates that its shares will provide 3% and 3.1% fully franked dividend yields in FY 2022 and FY 2023, respectively.

The post Why analysts are bullish on these 2 ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Friday
• Top brokers name 3 ASX shares to sell today
• Why Beach, Jumbo, Premier Investments, and Western Areas are pushing higher
• ASX 200 (ASX:XJO) midday update: Premier impresses but Kogan disappoints again

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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Premier Investments 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/why-analysts-are-bullish-on-these-2-asx-dividend-shares/

In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with on a positive note. At the time of writing, the benchmark index is up 2.2% to 6,990.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

AnteoTech Ltd (ASX: ADO)

The AnteoTech share price has crashed 25% to 23.5 cents. This follows the release of an update on its EuGeni Reader and COVID-19 Rapid Diagnostic Test (RDT). According to the release, AnteoTech has received a request for further information from the Therapeutic Goods Administration (TGA). This relates to the collection of additional clinical data, together with other aspects of information. These delays could see AnteoTech miss out on the incredible demand for rapid antigen tests at present.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is down 6% to $21.64. Investors have been selling gold shares today following a pullback in the price of the precious metal. In addition, Newcrest released its second quarter update this morning which shows that it will need a very strong second half to achieve its guidance. Newcrest recorded half year gold production of 832.3koz, which compares to its FY 2022 guidance of 1,800koz to 2,000koz.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is down 3.5% to $1.78. This is despite the document productivity company releasing a fourth quarter update which revealed that it achieved the low end of its guidance in FY 2021. Nitro delivered a 41% increase in Annual Recurring Revenue (ARR) to US$40.1 million over the 12 months. Investors appear to have been expecting stronger growth.

ResMed Inc. (ASX: RMD)

The ResMed share price is down 1% to $31.11 after its second quarter update fell a touch short of expectations. The sleep treatment company reported a 12% increase in revenue to US$894.9 million and a 12% lift in net income to US$201.8 million. Goldman Sachs notes that its revenue was 3% below consensus estimates due to weaker than expected device sales because of supply chain challenges.

The post Why AnteoTech, Newcrest, Nitro, and ResMed shares are falling appeared first on The Motley Fool Australia.

More reading

• Here’s why the Nitro (ASX:NTO) share price is backtracking 6% today
• Why the AnteoTech (ASX:ADO) share price is plummeting 23% on Friday
• ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint
• Newcrest (ASX:NCM) share price down 4% following Q2 update
• ResMed (ASX:RMD) share price on watch after Q2 update disappoints

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

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Key points

• Carbon Revolution share price exploding, up 17.26%
• Revenue up by 92.6%, according to quarterly update
• Wheel sales soared by 109.4%

The Carbon Revolution Ltd (ASX: CBR) share price is soaring today on the back of the company’s quarterly update.

At the time of writing, shares in the lightweight carbon fibre wheelmaker are swapping hands for 99 cents. This is a 17.26% increase from yesterday’s close.

Let’s take a look at what Carbon Revolution announced today.

Carbon Revolution share price explodes amid quarterly results

The Geelong-based company revealed the following:

• Quarterly total revenue of $11.4 million, up 82.6% on the previous corresponding quarter (PCP) of Q1 FY22
• Wheel sales up 109.4% on the PCP to 4,397 wheels
• Cash balance of $47.8 million
• Net cash outflow of $16 million for the quarter, in line with expectations

What else happened in the quarter?

A highlight for the company was the news that its carbon fibre wheels would be used on General Motors’ new Chevrolet C8 Corvette Z06 and Z07.

This is the first such partnership that Carbon Revolution has formed with the US-based car manufacturing giant.

Company managers also signed 2 new engineering deals. This includes an electric vehicle (EV) SUV deal.

What’s next for Carbon Revolution?

In FY22, the company intends to produce more Ferraris and launch production of the Corvette Z06 and Z07 wheels.

Carbon Revolution managers hope to better the company’s technology, equipment, and processes to improve its operations. The company is positive about its customer engagement on new initiatives and demand for its wheels.

In the company statement, Carbon Revolution said:

The global transition to electric vehicles is driving demand, with customers looking to benefit from the 40-50% weight savings of carbon fibre…

Carbon Revolution is optimistic that its sales outlook and new program pipeline is sound.

The company has 15 ongoing programs, including 8 awarded contracts and 7 design and engineering phase projects.

Carbon Revolution share price recap

The Carbon Revolution share price has gravitated downwards by 4.37% in 2022. Over the past 12 months, the share price has dropped 62.4%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5.2% in the past year.

Carbon Revolution has a market capitalisation of roughly $203 million based on its current share price.

The post Carbon Revolution (ASX:CBR) share price leaps 17% as sales surge appeared first on The Motley Fool Australia.

More reading

• Why AnteoTech, Newcrest, Nitro, and ResMed shares are falling
• Imugene (ASX:IMU) share price leaps 10% on new Roche deal
• Did this just cause the American Rare Earths (ASX:ARR) share price to surge 30% higher?
• 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

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution 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

• Imugene shares rocket on back of new supply agreement with Roche
• Clinical trial of PD1-Vaxx will be combined with an immune checkpoint inhibitor
• The deal is expected to last up to five years

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The Imugene Limited (ASX: IMU) share price is continuing its ascent during Friday afternoon following a company update.

At the time of writing, the company’s shares are strongly rebounding to post a gain of 9.65% to 31.3 cents.

Let’s take a look at what the company released to the ASX in late afternoon trade.

What’s driving the Imugene share price higher today?

Investors are fighting to get a hold of Imugene shares after the company announced a positive development for its PD1-Vaxx immunotherapy.

In today’s statement, Imugene advised it has entered into a clinical trial supply agreement with Swiss multinational healthcare company, Roche.

Imugene stated that the primary objective of the phase 1b trial is to determine the safety, efficacy and optimal dose of PD1-Vaxx in combination with atezolizumab.

The immunotherapy will be used for the treatment of lung cancer in patients at sites across the United States and Australia.

PD1-Vaxx is a B-cell immunotherapy designed to treat tumours by producing polyclonal antibodies that block PD-1 signalling, causing an anti-cancer effect.

Clinicians will look into the underlying benefits of PD1-Vaxx when in use with the immune checkpoint inhibitor targeting PD-L1, atezolizumab.

PD1-Vaxx has the advantage that it induces a unique polyclonal immune response which may increase response rates for the combination therapy.

Imugene managing director and CEO, Leslie Chong commented:

It’s an outstanding accomplishment to see Imugene collaborate with Roche, in combination with our PD1-Vaxx drug. PD1-Vaxx has shown a tolerable safety profile and encouraging efficacy in patients with NSCLC, and we are looking forward to evaluating PD1-Vaxx with atezolizumab in ICI treatment-naive and pre-treated NSCLC patients.

The supply agreement of atezolizumab will last for up to a period of five years. Imugene will take lead on the study, and fund it through existing budgets and resources.

The Imugene share price has shot up by almost 200% in value over the past 12 months.

The post Imugene (ASX:IMU) share price leaps 10% on new Roche deal appeared first on The Motley Fool Australia.

More reading

• Why Champion Iron, Dusk, Hipages, and Imugene shares are charging higher
• Why the Imugene (ASX:IMU) share price advanced 5% on market open
• Here are the top 10 ASX shares today
• Imugene (ASX:IMU) share price backtracks 7% despite milestone update
• These are the 5 best performing ASX shares of 2021

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

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Key points

• American Rare Earths’ shares are rocketing higher today
• A letter to shareholders may have given its shares a boost
• Sky high rare earth prices could also be getting investors excited

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The American Rare Earths Ltd (ASX: ARR) share price is ending the week in style.

In afternoon trade, the rare earths explorer’s shares are up a massive 32% to 37 cents.

Why is the American Rare Earths share price rocketing higher?

There appear to have been a couple of potential catalysts for the rise in the American Rare Earths share price on Friday.

The first is the release of a letter to shareholders this morning. That letter highlights the progress the company has made over the last 12 months, including increasing the size and grades of its La Paz project in Arizona, United States. This puts the project in a position to become one of North America’s largest rare earths projects.

The project was also given a boost with the backing of government officials at a national level in March of last year. It even became one of the few projects to be exempted from the Biden Administration’s 60-day halt on ground disturbing activity approvals.

Another positive from the letter was the quoting of research from Fortune Business Insights.

It notes that “the global rare earths elements market is projected to grow from US$2.8 billion in 2021 to US$5.5 billion in 2028 at a compound annual growth rate (CAGR) of 10.0% in the forecast period.”

This demand is being driven by the move to cleaner energy technology, as well as rising global uptake of digital devices, such as smartphones and laptops, in which rare earth elements are used.

What else?

Also potentially giving the American Rare Earths share price a boost today is the release of an update by industry peer Hastings Technology Metals Ltd (ASX: HAS).

In its quarterly update, the company spoke very positively about the rare earths market and the prices that are being commanded.

It said: “During the quarter, global NdPr oxide prices rose 40% to reach US$134.22/kg oxide EXW China. Post-quarter prices continued to climb with sellers showing no intention of lowering prices at this stage. Demand for rare earths required in permanent magnets remained strong, most likely because of recent changes in China on its energy efficiency standards for electrical motors.”

This could bode well for American Rare Earths once its La Paz project is operational.

The post Did this just cause the American Rare Earths (ASX:ARR) share price to surge 30% higher? appeared first on The Motley Fool Australia.

More reading

• American Rare Earths (ASX:ARR) share price slumps 9% on quarterly update

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

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The S&P/ASX 200 Index (ASX: XJO) is continuing to exhibit elevated volatility as ASX shares whipsaw upwards following yesterday’s steep fall.

Perhaps investors are attempting to call the bottom of the market a day after it officially entered correction territory. Conversely, it could be a temporary rally before the next leg downwards. Ultimately, only time will tell which is true.

Though, it raises the question: Is it possible to identify when ASX shares are hitting the bottom, prompting the time to invest? And, if not, what is the alternative for investors?

Can we time the market?

There are few things more difficult in investing than watching your ASX shares diminish in value shortly after buying more. It pushes all of our emotional buttons — which is why some wait on the sidelines, waiting for a cue that the pain is over.

Only after the bottom has been reached would these investors choose to invest more money in ASX shares. In the process, avoiding all the downside and capturing all the upside.

It sounds wonderous in theory — but is this approach realistic in practice? To answer this question — and others — we spoke to The Motley Fool’s chief investment officer, Scott Phillips.

The Motley Fool: Are there any signs that investors can look for in spotting a bottoming in the market?

Scott Phillips: Unfortunately not. See, if we could know that, then it’d never happen, because others would know it, too. (If you want a real-life example, the ‘Santa Claus rally’ — where stocks rise in December — happened in all likelihood because investors and traders tried to get in ahead of the old ‘January effect’.

Once you can reliably foresee an event, that knowledge makes the event unlikely to happen. Another example is the Reserve Bank dropping interest rates to stop a recession.

The Motley Fool: Is the exercise of ‘timing the market’ practical?

Scott Phillips: Timing the market is, frankly, dumb. Maybe some people can do it. Or maybe they were just lucky. Some very, very smart people who sold early in 2020, to avoid losses, missed the COVID rally entirely and ended up going backward as a result. It’s tempting to try. But probably a waste of time, and it might end up giving you a worse result.

What’s the alternative for buying ASX shares?

While timing the market may not be realistic, there is a different approach that has been successfully put to work in the past. This approach requires a long-term mindset, but it has produced incredible returns for investors before.

Rather than attempting to predict the future, investors have the option to buy and hold ASX shares. This approach emphasises the duration of the investment, instead of when you invested.

Phillips describes this ‘time in the market’ approach by saying:

If it was possible to time the market, everyone would do it. But do you know any seriously rich market timers? You’ve probably heard of Warren Buffett, though. His returns are astronomically good, over more than half a century. Or, the market itself, that took a hypothetical $10,000 and turned it into $160,000 over 30 years, according to Vanguard. How? By putting it into the market, once, in 1991. And then? Nothing. Literally nothing. Just waiting. That’s 150,000 good reasons to eschew market timing, I think.

The post When it comes to ASX shares, is it possible to pick the bottom? appeared first on The Motley Fool Australia.

More reading

• 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
• ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint
• 2 ASX dividend shares now offering big yields

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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Finally, a day of green for ASX shares! The S&P/ASX 200 Index (ASX: XJO) is bouncing back strongly today, after a pretty relentless week or two of falls. At the time of writing, the ASX 200 is up a healthy 2.11% at 6,982 points. 

But it’s time to dive a little deeper and take a look at the shares currently at the top of the ASX’s share volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume on Friday

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is our first share to check out today. This ASX 200 lithium producer has had around 18.2 million of its shares traded on the ASX so far this Friday. There’s no news out of the company so far today, so we can probably put this high volume down to the movements of the Pilbara share price itself.

At the time of writing, Pilbara has enjoyed a very pleasing 2.4% bump at $3.24 a share. However, the company also descended down to $3.04 at one point today. It’s probably this volatility and healthy price rise that is behind so many shares changing hands.

BHP Group Ltd (ASX:BHP)

ASX 200 mining giant BHP is next up this Friday. So far today, a hefty 21.7 million BHP shares have swapped owners. This company is also up big today, enjoying a 2.88% rise at the time of writing. But it’s more likely that this elevated volume is related to BHP’s upcoming ‘unification’. This refers to the miner’s plans to end its dual-listing on the London Stock Exchange and move home permanently to the ASX.

As such, there might be a lot of UK-listed shares that are in the process of being repatriated to the ASX before the official move date on 31 January, helping to boost trading volumes today.

Telstra Corporation Ltd (ASX: TLS)

Telstra is our final and (thus far) most traded ASX 200 share of the day. This telco has had a whopping 28.82 million shares bought and sold thus far this Friday. Like with Pilbara, this appears to be a byproduct of a healthy share price move upward.

Telstra is currently up a robust 1.7% at $3.95 a share after also experiencing a tad of volatility earlier in today’s trading day. It’s this, together with Telstra’s relatively low share price compared to its market capitalisation, that is probably responsible for its presence on this list today.

The post These 3 ASX 200 shares are topping the volume charts this Friday appeared first on The Motley Fool Australia.

More reading

• When it comes to ASX shares, is it possible to pick the bottom?
• This world-famous fund manager is ‘buying the dip’. Here’s why
• Top 2 ASX 200 shares of the year so far revealed
• ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint
• Here’s why the Telstra (ASX:TLS) dividend is back over 4%

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. 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 Telstra Corporation 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 Westpac share price is down 24% from its highs
• Morgans believes this has created a buying opportunity for investors
• Its analysts see 43% upside and a 6% dividend yield in 2022

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The Westpac Banking Corp (ASX: WBC) share price is back on form on Friday and is pushing higher in afternoon trade.

At the time of writing, the banking giant’s shares are up 2% to $20.58.

Though, that is little consolation for longer term shareholders. The Westpac share price is still down 24% from its 52-week high.

Is the Westpac share price good value?

While the weakness in the Westpac share price is disappointing, one leading broker believes it could be a buying opportunity for investors.

According to a recent note out of Morgans, its analysts have an add rating and $29.50 price target on the bank’s shares.

Based on the current Westpac share price, this implies potential upside of 43% for investors over the next 12 months.

But it gets even better! Morgans is forecasting fully franked dividends per share of 123 cents in FY 2022 (and then 162 cents in FY 2023). If you include FY 2022’s dividend yield of 6%, the total return on offer stretches to almost 50%.

What did the broker say?

Morgans believes the current Westpac share price makes it the best value major bank.

The broker commented: “We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA.”

Morgans notes that the share price weakness has been driven partly by doubts over Westpac’s ability to cut its cost base to $8 billion by FY 2024 and margin weakness. However, it feels the market is overreacting, which is creating a buying opportunity for investors.

The broker explained : “One way for us to arrive at a valuation – predicated on a cost of equity of 9% pa – which matches WBC’s current share price of ~$20.50 would be to assume that WBC only manages to reduce its annual cost base to $9.5bn by FY24F (compared with an underlying cost base of $10.2bn in FY20), experiences NIM contraction of 50bps from 2H21 to 2H24F and conducts no further capital management with all other elements of our forecasts unchanged.”

“We expect WBC to do notably better than this and we consequently believe that the extent of pessimism being reflected in WBC’s current share price is overdone,” it added.

The post Top broker sees 43% upside for the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia.

More reading

• Are these beaten down ASX 200 shares now too cheap to ignore?
• 2 buy-rated ASX dividend shares with big yields and huge upside potential
• Why Westpac (ASX:WBC) and these other ASX shares are trading at 52-week lows
• What’s happening to ASX bank shares today?
• Here’s when Westpac (ASX:WBC) expects the RBA to raise the cash rate

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 Race Oncology share price is up as high as 2.8% today
• A new discovery relating to heart protection has been made
• Oversubscribed share purchase plan has raised $29.7 million

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The Race Oncology Ltd (ASX: RAC) share price is up today following an activities update for the December quarter.

In it, the oncology company revealed a discovery relating to its core product, Zantrene.

Coinciding with the news, the Race Oncology share price went 2.8% higher today to $2.93, before retreating to $2.90 at the time of writing.

So what did the healthcare company announce? Let’s dissect its latest report…

Race Oncology share price up on activities report

At a glance, the Race Oncology corporate update reads as follows:

• A successful capital raising of $29.7 million through an oversubscribed share purchase plan at $3 a share
• Cash and equivalents increased to $37.10 million at 30 December (compared to $8.94 million on 30 September)
• The number of Race Oncology shareholders has increased

Race Oncology’s share purchase plan is funding the now-expanded Three Pillar Strategy for Zantrene.

It comes as the product showed new “commercial potential”.

So far, this raising will allow the product to progress into:

• FTO solid tumour Phase 1b/2 clinical trial
• Cardio protective preclinical and clinical Phase 2b trial
• Expansion of the EMD AML Phase 2 trial into Europe
• Improved Zantrene formulations
• New molecule development

Race Oncology’s Three Pillar Strategy will enable it to progress the expansion of the product through clinical programs, formulate and optimise its development, and pursue opportunities such as “internal development, partnership or acquisition”.

New discoveries on the horizon

In addition to the raising, the healthcare company has also made a preclinical discovery into heart protection during cancer treatment.

In its statement, the company explains:

While antracyclines are effective anti-cancer drugs they carry a serious risk of causing permanent heart damage.

Zantrene was shown to protect heart muscle from anthracycline-induced death when used in combination.

Using Zantrene and doxorubicin in combination resulted in better elimination of cancer cells, and further protected the heart from Multiple Myeloma drugs.

Race Oncology will extend its heart protection collaboration with the University of Newcastle to further the discovery.

Since the end of the quarter, the Race Oncology share price has dropped by 20%.

Comment from Race Oncology management

Race Oncology chair John Cullity said:

The exceptional work of our team and collaborators continues to unlock Zantrene’s potential. I’m particularly impressed by candidate clinical applications in the cardio-protection setting, which might recalibrate anthracycline therapeutics.

On behalf of the board, my particular thanks to our shareholders for supporting the recent SSP…

And it’s not just heart protection on the horizon.

Race Oncology CSO Daniel Tillet said:

We are looking forward to updating our investors on the rapid progress we are making over 2022 and beyond.

We are further encouraged by the newly released independent study showing Zantrene’s potential to inhibit FTO in Type 2 Diabetes.

While this is not our primary area of focus, it is important in that it builds upon the original identification of Zantrene as a potent FTO inhibitor by Professor Chen and his team at the City of Hope Hospital (2020)…

Race Oncology share price snapshot

Over the past 12 months, the Race Oncology share price has increased by 72%.

In January last year, the Race Oncology share price hit its lowest point at $1.64 apiece. By June, it had done a complete turnaround to achieve its highest point ever at $3.89 apiece.

The company has a market capitalisation of $462 million and 159 million shares outstanding.

The post Race Oncology (ASX:RAC) share price rises following preclinical discovery appeared first on The Motley Fool Australia.

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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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