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Last year proved to be a bleak time for the AGL Energy Limited (ASX: AGL) share price. Shareholders of the energy company were confronted with a debilitating 48% fall in the value of shares in 2021.

The substantial move to the downside is atypical for a blue-chip investment with the stature of AGL Energy. It would require some unnerving news to move a company that far into the negative. Unfortunately, there were a few events throughout the year that put investors on the edge.

Let’s take a closer look at three reasons the AGL share price continued to tumble in 2021.

Off on the wrong foot for AGL share price

Shares in the energy generator and retailer ushered in last year at a price of $11.95. On 4 February, the company commenced a swift descent following news pertaining to the recognition of charges. These charges reflected provisions mainly for legacy wind farm offtake agreements.

It appears investors were not fond of AGL recognising $2,686 million (post-tax) in charges during the first half of FY2021. As a result, the AGL share price sank 18% between 5 February and 26 February. In hindsight, this set the pace for what would be a disappointing year.

Throwing a breakup into the mix

Amid growing environmental pressures, AGL made the call on 30 March to split the company into two. These separate entities were defined as ‘New AGL’ and ‘PrimeCo’.

In addition, New AGL would be focused on the energy retailing business for Australian households. Furthermore, this de-merged company would have plans for carbon-neutral operations. Whereas, PrimeCo would be an electricity generator for the National Electricity Market.

Initially, the market reacted with positivity. However, sentiment soured as a clearer picture of the costs associated with separating the company surfaced. The split is expected to be finalised in the last quarter of FY2022.

Widening losses take a toll on AGL’s dividends

By the time August came around, things weren’t looking much brighter for the AGL share price. On 12 August the company reported its full-year results for FY2021.

To the disappointment of shareholders, revenues fell 10% year on year to $10.9 billion. Similarly, the bottom line felt the pinch as losses widened to $2.06 billion. For comparison, 12-month trailing earnings for the company at the end of December 2020 were $1.60 billion in losses.

The steep losses also forced management’s hand to reduce dividends paid to their shareholders. In turn, AGL’s full-year dividend fell 23.5% to 75 cents per share.

For reference, management attributed the undesirable result to lower wholesale electricity prices and reduced generation output.

The post 3 reasons the AGL Energy (ASX: AGL) share price failed to illuminate in 2021 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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Shares in Suncorp Group Ltd (ASX: SUN) have started the new year well and are now up more than 7% since January 1.

Suncorp shares are set to open the session at $11.60 today after pre-market activity, having climbed from a low of $10.65 back in December. However, the bank still has some headroom before touching 52-week highs of $12.94 back in October last year.

But the macro-narrative is shifting in 2022 to one of inflation, interest rates, and how this impulse will direct fund flows in financial markets.

The market is pricing in 3 to 4 rate hikes from the US Fed in 2022 according to market data, spurred on by language from US Fed chair Jerome Powell and minutes from the most recent Federal Open Market Committee (FOMC) meeting.

As such, the market looks as if it’s pricing in the impact of these rate hikes, and there’s been a corresponding rotation out of tech and high-growth into sectors that have the highest correlation to US Treasury yields this year.

The top segment in this regard according to research from JP Morgan is the financials sector, which, unsurprisingly, has seen the largest fund flows since we rolled into 2022.

For instance, the Financial Select Sector SPDR Fund (NYSEARCA: XLF) recorded the highest net inflows of any listed product last week, reaching a total of $2.34 billion.

Moreover, the S&P/ASX 200 Financials Index (XFJ) has climbed 1.5% this year to date after rallying 3% in the past month.

So investors are starting to park their hard earned capital into the more defensible pockets of the market. How does this bode in for the Suncorp share price? Here’s what Morgan Stanley and JP Morgan had to say in recent notes to investors.

What’s the chatter from analysts?

The team at JP Morgan are neutral on Suncorp, although reckon that the bank could benefit from macroeconomic factors currently impacting the industry, such as reduced motor claims from COVID-19 lockdowns.

Aside from that, the broker says Suncorp’s margins are likely to benefit in 3 to 4 core areas going forward. It reckons Suncorp will see margin expansion in home personal and commercial lines, alongside incremental benefits from perils allowances and expenses.

Given the talk on industry-wide pressures to net interest margins (NIMs) in 2022 for the ASX banking sector, JP Morgan notes this is a positive to Suncorp’s investment debate.

However, it views these positive trends alongside “some margin degradation in CTP [compulsory third party insurance]”.

The firm is also cautious on Suncorp’s Australian personal lines business, and questions if the bank’s cost-to-income targets are a little too optimistic.

Although it remains neutral on Suncorp, it values the bank at $13.30 per share, after applying a risk adjustment to its discounted cash flow (DCF) valuation of $14.32 and franking credits at 70%.

It applies this discount to “reflect adverse events such as heavy rains and flooding in NSW that pose some downside risk and may cause the market some concerns about [Suncorp’s] exposure”.

Meanwhile, the team at Morgan Stanley are also neutral on Suncorp shares. However, the investment bank just completed its analysis of 2021 home and motor new business pricing for Q4 2021, noting Suncorp’s more competitive pricing versus competitors.

Yet, Morgan Stanley also reckons the savings pool from Suncorp’s motor savings may have largely dried up, and as such, it sees “margin risks from higher claims and input costs, unless pricing improves or Suncorp achieves larger cost savings”.

It values the company at $11.90 per share and joins the likes of Morgans and Barclay Pearce Capital in its neutral stance.

Consensus is stil bullish

Despite the neutral sentiment, Macquarie, Jarden and Credit Suisse still tip the Suncorp share price to outperform in 2022.

In fact, the overall sentiment appears to be bullish, according to a list of analysts provided by Bloomberg Intelligence. For instance, 61.8% of coverage has it as a buy, whereas the other 38.5% has it as a hold.

There are no services recommending that their clients sell Suncorp in the list of analysts utilised for this report.

As such, the group has a consensus price target of $13.05, which still sees an 11.5% upside potential from the open today.

In the past 12 months, the Suncorp share price has climbed almost 9% after rallying more than 7% in the last month.

The post Own Suncorp (ASX:SUN) shares? Here’s what top analysts are saying appeared first on The Motley Fool Australia.

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The author has no positions 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 Objective Corporation Limited (ASX: OCL) share price has rebounded from an early decline.

Shortly after the open, the content, collaboration and process management software solutions company’s shares were down as much as 5% to $16.14.

However, at the time of writing, the Objective Corp share price is up 2.5% to $17.39.

Why is the Objective Corp share price rebounding?

The catalyst for the rise in the Objective Corp share price on Thursday was the release of a trading update shortly after the market open.

According to the release, the company expects to report revenue of $52.7 million and EBITDA of $15.1 million for the first half of FY 2022. This represents an increase of 13.3% and 28%, respectively, over the prior corresponding period.

Also growing strongly was Objective Corp’s Annual Recurring Revenue (ARR). At the end of December, it stood at $79.5 million, which is an increase of 13.4% from $70.1 million a year earlier.

Management also revealed that it continues to invest in innovation. During the half, the company invested $12.8 million in research and development. This was up 14% year on year and represents 24% of revenue.

A final positive was the company’s strong balance sheet. At the end of the period, Objective Corp had cash of $44 million. This was up 59% year on year despite paying fully franked dividends totalling $8.5 million.

Management commentary

Objective Corp’s CEO, Tony Walls, was pleased with the half.

He commented: “The strong financial performance in 1HY2022 reflects the on-going dedication of every member of the Objective team to deliver outstanding results, the enduring resilience of our business model and the strength of the Objective brand in our target markets.”

“During 1HY2022, we again increased our substantial investment in innovation across our product portfolio with numerous important products to be released in 2HY2022 including Objective Build, Objective Nexus and Objective Regworks IQ. Our commitment to this investment is strongly supported by existing and evolving opportunities, driven by the demands of digital government, remote working and process automation, all of which have been accelerated by the impacts of COVID-19.”

“Our products remain central to supporting our customer’s digital transformation journey and, in many cases, we are only in the early stages of seeing the positive impact on customers and our resulting revenue,” he added.

Outlook

Mr Walls’ comments on the remainder of the half also appear to have boosted the Objective Corp share price today.

He said: “The outlook for the remainder of FY2022 remains very positive, reflecting the progress we made in 1HY2022 and the momentum we have carried into 2HY2022. Objective Regtech continues to perform particularly strongly as we realise the results of our sustained investment in product innovation and go-to market capacity since the team joined the Objective family.”

The post Why the Objective Corp (ASX:OCL) share price is charging higher appeared first on The Motley Fool Australia.

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• Own Suncorp (ASX:SUN) shares? Here’s what top analysts are saying
• Here’s why the Carnaby (ASX:CNB) share price is rocketing 33% today
• Neck and neck: Macquarie (ASX:MQG) bumps Westpac to become third-largest Aussie bank
• PointsBet (ASX:PBH) share price falls on mixed broker note
• Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends 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 Objective Corporation Limited. 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 strong performance of Macquarie Group Ltd (ASX: MQG) has seen it solidify its position as one of Australia’s big four banks.

As of Wednesday’s close the investment bank is worth more than Westpac Banking Corp (ASX: WBC).

It comes just months after the S&P/ASX 200 Index (ASX: XJO) giant’s valuation shocked some market watchers by surpassing that of Australia and New Zealand Banking Group Ltd (ASX: ANZ), disrupting the once untouchable valuations of the banking heavyweights.

So, what’s boosted Macquarie into the big bank cult? Let’s take a look.

Macquarie outgrows another Aussie big four

Despite a slight tumble into the new year, the Macquarie share price has positioned the company as Australia’s third-largest bank.

It closed yesterday’s session at $208.39, leaving the bank with a market capitalisation of $79.94 billion, according to the ASX.

At the same time, that of Westpac was sitting at $79.49 billion while ANZ had a valuation of $78.92 billion.

Those paying attention to Macquarie’s recent performance will likely be unsurprised the investment bank has overtaken its smaller ASX 200 competitors.

Over the past 12 months, its share price has boomed a whopping 52%. For context, the ASX 200 has gained around 11.5% while the Westpac share price is up just 5%.

Perennial Value Management portfolio management director Stephen Bruce recently told The Motley Fool Australia’s Tony Yoo Macquarie’s success is born from, and will likely continue to lie with, its ability to adapt to new investment trends. Yoo quoted Bruce as saying:

[Macqaurie] were the leaders in infrastructure as pioneers of infrastructure-as-an-asset class. And now that’s obviously becoming a very crowded space, but they’ve proactively moved down the value chain into greenfield developments and actually creating the assets rather than just buying them.

Could the investment bank overtake more big fours?

Whether it can overtake the final 2 ASX big banks is probably the question now facing Macquarie fans. But the bank has a bit to go before we can call that a likelihood.

As of yesterday’s close, the market capitalisation of National Australia Bank Ltd (ASX: NAB) was head and shoulders above Westpac’s. It boasted a $95.41 billion valuation.

The Motley Fool Australia’s Zach Bristow recently crunched the numbers, finding the Macquarie share price would need to trade at around $249 before the bank could take out second position. That’s 19% higher than it currently sits.

For those wondering, it would be a massive ask for Macquarie to overtake Commonwealth Bank of Australia (ASX: CBA). CBA’s $173.33 billion market capitalisation makes it the largest company on the ASX 200.

At the time of writing, the Macquarie share price is up 0.56% at $209.56.

The post Neck and neck: Macquarie (ASX:MQG) bumps Westpac to become third-largest Aussie bank appeared first on The Motley Fool Australia.

More reading

• Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends in 2022?
• 2 buy-rated ASX 200 dividend shares with big yields
• Could Macquarie (ASX:MQG) become Australia’s second-biggest bank in 2022?
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• These were the top 5 ASX 200 bank shares in 2021

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 recommended Macquarie Group Limited and 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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The Carnaby Resources Ltd (ASX: CNB) share price is having a day out today. This comes after the company announced strong drill results within the Greater Duchess Copper Gold Project in Mt Isa, Queensland.

At the time of writing, the mineral exploration company’s shares are trading 33.33% higher to an all-time high of $1.66.

Carnaby untaps huge high-grade discovery

In today’s statement, Carnaby advised it has received exceptional assay results from the first five holes drilled at the Lady Fanny Prospect. These highlighted high-grade copper and high-grade gold results, which included:

• 27 metres at 2.8% Cu, 0.8 g/t Au from 61 metres (drill hole LFRC009)
• 20 metres at 2.8% Cu, 0.8 g/t Au from 30 metres (drill hole LFRC013)
• 17 metres at 2.8% Cu, 0.8 g/t Au from 74 metres (drill hole LFRC012)

While the assay is extremely encouraging, the company will move ahead with a major program at the Lady Fanny discovery. It noted that the area along with the Burke & Wills prospects will be targeted with ground Induced Polarisation (IP) surveys. This will aid further drilling to explore for mineralisation that may exist beneath the historical drill results.

Carnaby managing director, Rob Watkins commented:

These stunning first pass drill results from Lady Fanny just 3 km north of the spectacular Nil Desperandum high grade discovery really demonstrate the untapped potential of the greater than 5km long IOCG corridor that is rapidly emerging within the Greater Duchess Copper Gold Project.

Investors have been fighting to get a hold of Carnaby shares following the impressive assay results. Notably, Lady Fanny remains completely open and undrilled to the north of the high-grade result. If RC drilling uncovers additional mineralisation, this could potentially lead to the company’s shares further moving into uncharted territory.

Carnaby share price snapshot

Over the last 12 months, the Carnaby share price has jumped by more than 370% for shareholders. The company’s shares reached an all-time high today of $1.66.

Based on today’s price, Carnaby commands a market capitalisation of around $1.35 billion with approximately 131.61 million shares on issue.

The post Here’s why the Carnaby (ASX:CNB) share price is rocketing 33% today appeared first on The Motley Fool Australia.

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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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The PointsBet Holdings Ltd (ASX: PBH) share price is trading lower on Thursday morning.

At the time of writing, the sports betting company’s shares are down 4% to $6.40.

This means the PointsBet share price is now down 9% in 2022.

Why is the PointsBet share price falling?

The weakness in the PointsBet share price today appears to have been driven by a broker note out of Credit Suisse.

Although the broker continues to recommend the company’s shares as a buy, it has taken an axe to its price target ahead of its first half results next month.

According to the note, Credit Suisse has retained its outperform rating and cut its price target by 30% from $12.80 down to $8.00.

This implies potential upside of 25% for investors. And while this is clearly still very attractive, it pales in comparison to the previous target which suggested 100% upside.

What did the broker say?

Credit Suisse notes that PointsBet is aiming to launch in New York later this month following highly successful competitor launches last week. So successful, the state became the biggest sports betting state in the US after just 12 hours of operation with 5.8 million user sign ins.

Although PointsBet will have some catching up to do when it eventually launches, the broker is pleased that the market may be larger than it was expecting. In addition, it notes that PointsBet’s promotional deal is one of the most generous on offer, which could bode well for signups.

However, it does have concerns over the intense competition, lower than expected market share gains, and the prospect of another capital raising being required in the not so distant future.

Nevertheless, it remains positive on the PointsBet share price at the current level. Particularly given its New York licence, which it suspects could make the company an attractive target if the industry consolidates.

The post PointsBet (ASX:PBH) share price falls on mixed broker note 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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended 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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The National Australia Bank Ltd. (ASX: NAB) share price is in the green this morning amid news the bank is upping its hold on the health payments space.

NAB’s health payments subsidiary HICAPS – utilised by all of Australia’s private health funds and more than 94,000 health service providers – has proposed to acquire digital health claiming technology business, LanternPay.

At the time of writing, the NAB share price is $29.40, 0.55% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.2% this morning.

Let’s take a closer look at what could be NAB’s next purchase.

NAB share price higher amid new payments purchase

The NAB share price is moving higher on Thursday. Meanwhile, the bank has proposed to acquire a payment technology start-up promising to deliver real-time approvals and faster payments from medical healthcare schemes.

LanternPay is designed to simplify payments processes for medical providers working alongside schemes such as Medicare, workers compensation, and the National Disability Insurance Service (NDIS).

The bank plans to integrate the technology into HICAPS – an acronym for Health Industry Claims and Payments Service.

If all goes to plan, it expects that a new digital HICAPS will be rolled out over the course of this year.

Additionally, according to reporting by the Australian Financial Review, the purchase could lead to a HICAPS app that may see Australians paying for treatments with smartphones at practices without payment terminals.

On the proposed acquisition, NAB’s group executive for business and private bank Andrew Irvine commented:

The healthcare sector is already one of the country’s largest providers of employment, and the fifth largest contributor to Australia’s GDP. Australian healthcare payment systems have been cumbersome – resulting in disjointed payment experiences for patients and complexity for healthcare providers.

Integrating NAB’s HICAPS with LanternPay technology will over time deliver a seamless digital customer experience… Customers who previously might have waited days for a reimbursement from the NDIS for example, will now receive this payment on the spot. For many Australians, this will be an absolute game changer.

LanternPay is owned by platform developer, InLoop. The acquisition is subject to conditions including regulatory approval.

It follows the acquisition of Whitecoat by Commonwealth Bank of Australia (ASX: CBA) last year. The digital healthcare services directory is continuing its pivot towards payment services in the wake of the acquisition.

Right now, the NAB share price is 1.9% higher than it ended in 2021.

The post NAB (ASX:NAB) share price gains following digital health claim acquisition appeared first on The Motley Fool Australia.

More reading

• Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends in 2022?
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• What made the NAB (ASX:NAB) share price so appealing in 2021?
• These were the top 5 ASX 200 bank shares in 2021
• Here’s why this top ASX broker picks NAB shares out of the big four banks

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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Is it possible that Westpac Banking Corp (ASX: WBC) could be the best big four ASX bank for dividends in 2022?

There are a couple of different factors that decide how large a company’s dividend yield is going to be.

One key factor is the size of the dividend paid. Westpac (and a lot of companies) make a net profit after tax each year. The board just has to decide how much of its profit is going to be paid out as a dividend. Half of the profit? All of it? None? Companies consider what the profit could be used for if left within the business, but also consider what the shareholders may want.

Another factor is the valuation. The higher the earnings multiple, the lower the dividend yield.

Those are the types of things that can influence dividend yields when comparing Westpac to Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Will Westpac have the biggest dividend yield?

Current estimates on Commsec put the Westpac share price at 13x FY22’s estimated earnings and a projected grossed-up dividend yield of 8%.

Turning to the biggest bank, the CBA share price is valued at 20x FY22’s estimated earnings with a forecast grossed-up dividend yield of 5.4% according to Commsec.

Next is NAB. Commsec’s figures put the NAB share price at 15x FY22’s estimated earnings with a potential grossed-up dividend yield of 6.8%.

Finally, the ANZ share price is valued at 13x FY22’s estimated earnings with a possible grossed-up dividend yield of 7.5% according to Commsec.

So, just on Commsec’s numbers, Westpac is projected to have the biggest dividend yield in 2022 partly down to the fact it is the seemingly the (joint) cheapest bank based on the estimated earnings for FY22.

But is the dividend worth pursuing at the current Westpac share price?

Historical performance may or may not be a future guide to dividends.

Income investors may want to know that Westpac cut its dividend the most during the COVID-19-hit year of 2020. However, it’s possible that other one-off factors impacted Westpac in 2020, as well as the pandemic.

However, whilst projections are just estimates, Commsec numbers suggest growth of the annual Westpac dividend from $1.22 per share in FY22, to $1.30 per share in FY23 and then to $1.39 per share in FY24.

That means by FY24 Westpac could be paying a grossed-up dividend of 9.2%. However, that’s still a few years away and are just estimates at this point.

Is it a buy?

There are a number buys and hold ratings from brokers on Westpac at the moment. Citi currently rates Westpac as a buy with a price target of $27.50. However, Morgan Stanley currently rates the Westpac share price as a hold, though the price target is $24.80 which still implies a potential double digit rise of the .share price.

The post Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends in 2022? appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX 200 dividend shares with big yields
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• What made the NAB (ASX:NAB) share price so appealing in 2021?
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• Why the CBA (ASX:CBA) share price jumped 23% in 2021

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The Rio Tinto Limited (ASX: RIO) share price could be one to watch over the coming weeks.

In 2022, the company’s shares have risen 7.15% in value for its shareholders. In contrast, the S&P/ASX 200 Index (ASX: XJO) has fallen 0.08% to 7,438.9 points over the same timeframe.

At Wednesday’s market close, the mining giant’s shares finished the day up 0.85% to $107.27.

Canadian watchdog asked to investigate potential conflict of interest

According to the Australian Financial Review, Canada’s Ethics Commissioner has received a request to investigate incoming Rio Tinto chair, Dominic Barton’s job appointment.

The probe is centred around whether Mr Barton broke ethics rules by meeting with the mining giant in October. At that time, Mr Barton was serving as Canada’s ambassador to China.

It’s worth noting that Rio Tinto has a considerable interest in the Asian superpower. In fact, the company has been supplying iron ore to China Baowu. The latter, which is state-owned has become the largest iron and steel company in China.

Reportedly, two MPs from the New Democratic party wrote to the commissioner, Mario Dion last Friday. The letter voiced concerns regarding Mr Barton’s meeting with Rio Tinto executives before being awarded the high-ranking job.

The miner announced that Mr Barton secured the role on 20 December, swapping out current chair, Simon Thompson. This is roughly ten weeks after the October meeting with senior Rio Tinto officials, and two weeks before leaving his post as a diplomat.

The website for the office of the conflict of interest and ethics commissioner, states that former appointed or elected officials are restricted from being employed by private companies that have had direct or significant dealings in their final 12 months of working for the government.

Mr Barton is expected to join Rio Tinto’s board in early April, before taking up the chair position on 5 May.

Rio Tinto briefly touched on the subject, saying it’s aware of the investigation and that it would not impact Mr Barton’s appointment.

Rio Tinto share price summary

Despite travelling higher in 2022, it has been a disappointing 12 months for Rio Tinto shareholders. The company’s shares have lost around 11% in value since this time last year.

Rio Tinto has a market capitalisation of $39.49 billion and approximately 371.22 million shares on hand.

The post Own Rio Tinto (ASX:RIO) shares? Here’s why the miner’s new chair appointment is making waves appeared first on The Motley Fool Australia.

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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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The Whitehaven Coal Ltd (ASX: WHC) share price could be heading meaningfully higher from here in 2022.

That’s the view of one of Australia’s leading brokers, Goldman Sachs.

What is the broker saying about the Whitehaven share price?

As I mentioned here earlier today, the team at Goldman Sachs has been looking at the mining sector and remains positive on its outlook.

The broker expects this to be underpinned by an expected stabilisation and modest recovery in Chinese construction activity post Lunar New Year, further broad improvement in rest of the world demand, structural supply shortages, and low inventories across most commodities.

And with the Whitehaven Coal share price pulling back from its highs in recent months, its analysts see this as a buying opportunity for investors.

So much so, Goldman has upgraded the company’s shares to a buy rating with a $3.60 price target. Based on the current Whitehaven Coal share price of $2.88, this implies potential upside of 25% over the next 12 months.

What did Goldman Sachs say?

Goldman commented: “We remain positive on thermal into 2022 with a strong recovery in global power demand and ongoing power shortages, strong gas prices, and supply side issues. We also remain constructive on met coal which we see as being undersupplied, but do expect prices to moderate in 2022.”

“We upgrade WHC to Buy (from Neutral) with the stock down c. 25% off its 12-m high (A$3.64/sh) and trading at a 15% discount to our NAV & c. 50/10% FCF yield in FY22/FY23. WHC is a compelling de-gearing story in our view,” it concluded.

For similar reasons, Goldman also has a buy rating and $1.80 price target on the shares of Coronado Global Resources Inc (ASX: CRN). This compares favourably to the latest Coronado Global Resources share price of $1.37.

The post Goldman tips Whitehaven (ASX:WHC) share price to jump 25% appeared first on The Motley Fool Australia.

More reading

• Why has the Whitehaven Coal (ASX:WHC) share price rallied 20% in a month?
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• Why Brainchip, Pilbara Minerals, Straker, and Whitehaven Coal shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Pilbara Minerals hits record high, energy shares rise

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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