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The Wesfarmers Ltd (ASX: WES) share price has been on the move in December.

When looking at the past month, the conglomerate’s shares have gained around 5.1%. By compassion, the S&P/ASX 200 Index (ASX: XJO) has lifted by roughly 3.3% over the same time frame.

Below, we take a closer look at what’s been happening with the Wesfarmers share price.

What’s up with Wesfarmers?

Investors have been buying up on Wesfarmers shares as the company battles out with Woolworths Group Ltd (ASX: WOW) for Australian Pharmaceutical Industries Ltd (ASX: API).

Wesfarmers’ biggest competitor, Woolworths tabled a cash offer price of $1.75 per API share by way of a scheme of arrangement. This translates to a total equity value of $872 million.

Notably, the proposed offer price represents a premium of 20 cents per share or 12.9% over the price agreed between API and Wesfarmers on 8 November 2021.

However, Wesfarmers owns a 19.3% stake in API, and will undoubtedly reject any scheme of arrangement between Woolworths and API.

In addition, the company has been busy navigating its way through COVID-19.

Wesfarmers reported tough trading conditions at its annual general meeting (AGM) held in late October.

In particular, the company stated that some of its businesses such as Bunnings, K-mart and Target were impacted by store closures. Although, strong online sales managed to offset the loss of potential revenue.

On the other hand, Officeworks thrived as customer demand for technology and office furniture accelerated. This was attributed to more people working from home due to government-mandated restrictions.

The Wesfarmers chemicals, energy and fertilisers division continued to grow on the back of ammonium nitrate and favourable LPG pricing.

Although, a possible driving force behind the Wesfarmers share price could be from a broker update.

American multinational investment bank, JPMorgan upgraded its outlook on Wesfarmers shares to “overweight” from a “neutral” position.

Its analysts raised the price target by a sizeable 21% to $64.00 per shares. Based on yesterday’s closing price of $59.94, this implies an upside of about 6.5%.

Wesfarmers share price snapshot

Since the beginning of the year, the Wesfarmers share price has gained almost 20%, surging past pre-pandemic levels. The company’s shares reached a record high of $67.20 in August before treading lower in the couple of months ahead.

Wesfarmers commands a market capitalisation of around $67.96 billion, making it the 8th largest company on the ASX.

The post Here’s why December is being kind to the Wesfarmers share price appeared first on The Motley Fool Australia.

More reading

• 2 strong ASX 200 dividend shares to own for income
• Invested in Wesfarmers (ASX:WES) shares? Here’s what to watch in 2022
• Woolworths (ASX:WOW) share price rises as boss courts API pharmacists
• Wesfarmers (ASX:WES) share price rises amid latest push for API
• Goliath vs Goliath: All eyes on Wesfarmers (ASX:WES) share price as conglomerate vows to vote against Woolies

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 owns and has recommended Wesfarmers 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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The Insurance Australia Group Ltd (ASX: IAG) share price has moved in circles during the month of December. This comes despite the company providing investors with a positive business update three weeks earlier.

At yesterday’s market close, the insurance giant’s shares recovered some of its losses by rising 1.41% to $4.33 a pop.

What’s got IAG in a tailspin this month?

While management reported its revised targets on margin and gross written premium (GWP) growth, IAG shares pushed higher.

The company is forecasting low single-digit increases on GWP and an insurance margin guidance range of between 10% to 12%. Previously, the insurance margin level was in the 13.5% to 15.5% range.

The seasonally unexpected claims made year to date forced IAG to downgrade its FY22 GWP and insurance margin guidance.

The company revealed that it is expecting a significant rise in net natural perils claim costs for FY22. Severe storm and hail activity experienced in South Australia and Victoria during October were being blamed for the increased costs.

In total, net natural perils claim costs for the current financial is forecasted to be around $1,045 million. This is a hefty amount from the company’s previous estimates of $765 million. It is worth noting that this includes $510 million for perils events for the remainder of the financial year.

What do the brokers think?

A number of brokers have rated the company with comparable price points since the release of its business update on 7 December.

Leading Australian investment firm, Macquarie cut its 12-month price target by 3.7% to $5.20 for IAG shares. Following suit, Swiss investment bank, UBS had a more bearish stance, reducing its rating by 21% to $4.20.

It appears investors are more in tune with UBS’ outlook on the IAG share price

IAG share price review

Over the last 12 months, the IAG share price has lost around 10%, with year-to-date down 8%. It’s worth noting however that the company’s shares have lost 50% since July 2019, particularly when COVID-19spread across Australia.

Based on today’s price, IAG presides a market capitalisation of roughly $10.67 billion, with approximately 2.47 billion shares on issue.

The post Why is the IAG (ASX:IAG) share price diving in December? appeared first on The Motley Fool Australia.

More reading

• Is the IAG (ASX:IAG) share price too cheap to ignore?
• Why is the IAG (ASX:IAG) share price underperforming QBE in 2021?
• Why is the IAG (ASX:IAG) share price heading south today?
• What are experts saying to expect for the IAG (ASX:IAG) share price in 2022?
• It’s trading at around 9-year lows, could the IAG (ASX:IAG) share price be a takeover target?

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 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.

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The Zip Co Ltd (ASX: Z1P) share price has been spiralling downwards to post a loss of 15% in December. This comes despite the buy-now pay-later (BNPL) company providing a positive trading update for the month prior (November).

At yesterday’s market close, Zip shares finished the day flat at $4.39.

What’s going on with Zip?

Early this month, Zip provided investors with its monthly performance review, highlighting strong numbers for November.

While the company’s key metrics surged by double digits year-on-year, its shares accelerated by 20% over the two days. However, this was short-lived with the Zip share price quickly retracing during the following five business days (9 – 15 November).

A catalyst for the recent dip as described by management in the trading update could be the significant volatility in equity markets. The S&P/ASX All Technology Index (ASX: XTX), has fallen around 4% over the course of December.

In addition, the BNPL competition is continuing to ramp up as more entrants come into the industry.

In September, PayPal Holdings Inc (NASDAQ: PYPL) acquired Japanese BNPL company, Paidy to fuel its own growth.

Unfortunately for Zip, a rush of new direct players aiming to win global market share is becoming of concern.

National Australia Bank Ltd. (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA) have also entered the BNPL space. And if that’s not enough, Suncorp Group Ltd (ASX: SUN) partnered with Visa Inc(NYSE: V) for a new BNPL solution.

This is on top of the direct competition that Zip is up against which includes Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL).

Furthermore, a couple of brokers reassessed the 12-month price target for Zip shares. As such, Swiss investment firm, UBS cut its rating by 5.5% to $5.20 apiece. American multinational investment bank, Jefferies had a more bearish outlook. Its analysts slashed its view on Zip shares by a massive 40% to $4.48.

It seems that investors have a similar tone on Jefferies’ prediction, with Zip shares currently trading on par.

Zip share price summary

It has been a whirlwind year for Zip investors. The company’s shares rocketed to an all-time high of $14.53 in February, before quickly plummeting throughout the year.

Zip commands a market capitalisation of around $2.57 billion and has more than 588.83 million shares on its registry.

The post Why has the Zip (ASX:Z1P) share price tumbled 15% in December? appeared first on The Motley Fool Australia.

More reading

• In the ‘dog basket’: 6 ASX shares that could rebound in 2022
• These are the 10 most shorted ASX shares
• The stories that rocked the ASX 200 in 2021 revisited
• Own Zip (ASX:Z1P) shares? Here are some key dates to watch in 2022
• Here are the top 10 ASX shares today

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. owns and has recommended ZIPCOLTD FPO. 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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After a very difficult time in November, the Westpac Banking Corp (ASX: WBC) share price is bouncing back in December.

With just two trading sessions left to go, the banking giant’s shares are up almost 5% month to date.

This puts the Westpac share price on course to record a gain of over 9% in 2021.

Why is the Westpac share price performing positively in December?

Investors have been buying Westpac’s shares this month on the belief that they were oversold in November. That selling was caused by the release of the bank’s full year results.

While those results revealed strong profit growth in FY 2021, they also revealed expectations for significantly weaker than expected margins in the year ahead. This is being caused largely by aggressive competition for home loans.

In addition, doubts over the bank’s ability to achieve its FY 2024 $8 billion cost base target weighed on sentiment.

The rebound

The team at Morgans saw the weakness in the Westpac share price as a buying opportunity and it appears as though many investors agreed.

Early in December, the broker commented: “WBC’s current share price of ~$20.50 would [..] assume that WBC only manages to reduce its annual cost base to $9.5bn by FY24F, experiences NIM contraction of 50bps from 2H21 to 2H24F and conducts no further capital management.”

“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.”

The good news for investors is that Morgans still sees plenty of scope for the Westpac share price to rise from here despite its recent run. The broker has an add rating and $29.50 price target on its shares. This implies potential upside of 37% over the next 12 months.

The post How has the Westpac (ASX:WBC) share price performed in December? appeared first on The Motley Fool Australia.

More reading

• How does Westpac stack up against the CBA (ASX:CBA) share price?
• ASX 200 (ASX:XJO) midday update: CBA and Westpac rise, Afterpay tumbles again
• 3 excellent ASX 200 blue chip shares to buy in 2022
• Could 2022 be a good year for the Westpac (ASX:WBC) share price?
• Here’s what Bell Potter thinks of the Westpac (ASX:WBC) share price

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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If you’re planning to invest in the resources sector in 2022, then you may want to look at the mining shares listed below.

Both have been named by analysts at Bell Potter as top picks for next year. Here’s why they are bullish on them:

Alpha HPA Ltd (ASX: A4N)

Bell Potter is bullish on this producer of High Purity Alumina (HPA) and aluminium precursor products for the lithium battery market. This is due to its exposure to the global decarbonising and onshoring themes.

The broker has put a speculative buy rating and 87 cents price target on the company’s shares.

Bell Potter explained: “A4N’s HPA and aluminium precursor products have applications in lithium ion battery, micro-LED and semiconductor manufacturing – technologies at the forefront of the global decarbonising and onshoring themes. The company’s proprietary process has produced product samples which have been recognised by a number of end users as the highest purity tested.”

“The high purity products and competitive unit costs have the potential to disrupt incumbent production methods and establish A4N as an integral part of rapidly advancing technology supply chains. The company has line of sight to cash flows as operations commence from its Precursor Production Facility from August 2022,” it added.

Lake Resources N.L. (ASX: LKE)

This lithium developer could be an ASX mining share to buy in 2021. Bell Potter has placed a speculative buy rating and $1.37 price target on its shares.

The broker is bullish thanks to its lithium exposure and strategic appeal. The latter is due to its uncommitted product offtake and independent share register.

Bell Potter commented: “LKE is developing the Kachi lithium brine project located in north western Argentina. A March 2021 prefeasibility study evaluated a 25.5ktpa lithium carbonate project with average annual EBITDA of $260m and a post-tax NPV8 of US$1,580m.”

“Kachi is unique in that LKE is aiming to employ direct lithium extraction through ion exchange technology to recover lithium from its brine Resource. The key advantages of this technology are a smaller environmental footprint, lower carbon emissions and greater process control. A definitive feasibility study for Kachi is due by mid-2022. With uncommitted product offtake and an independent share register, LKE has strategic appeal,” it concluded.

The post Bell Potter names 2 ASX mining shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• The ASX share market coverage that captivated readers in 2021
• Why the Lake Resources (ASX:LKE) share price is up 4% today
• Why Challenger, Helloworld, Lake Resources, and Strike Energy are charging higher

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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This year is on course to be a highly successful one for Australian investors. Barring an end of year pullback, the S&P/ASX 200 Index (ASX: XJO) is currently on track to record a gain of over 12% in 2021.

Unfortunately, not all shares have been able to follow the market higher this year. The two ASX shares listed below, for example, have lost over 50% of their value since the start of the year.

While this is very disappointing, the team at Bell Potter is tipping a big rebound in 2022. Here’s why they could be buys:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down a disappointing 52% in 2021. This has been caused by a significant reduction in sales and profits due to structural changes in the Chinese infant formula market which management failed to anticipate.

Bell Potter believes that a turnaround is coming and doesn’t believe this is being reflected in its shares. As a result, the broker has named the company among its top picks for 2022 with a buy rating and $7.70 price target.

The broker commented: “We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. The catalyst to regaining lost English label sales is likely to be border reopening and the return of international students. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

Doctor Care Anywhere Group PLC (ASX: DOC)

The Doctor Care Anywhere share price has been sold off and is down by a whopping 56% year to date to 54.5 cents. This means the telehealth’s company’s shares are now trading 32% lower than their IPO listing price of 80 cents from December of last year.

Bell Potter appears to see this as a buying opportunity for investors. The broker has put a buy rating and lofty $1.30 price target on its shares. This suggests that its shares could more than double in 2022.

Its analysts explained: “DOC experienced exceptional growth during the first 9 months of calendar year 2021 with appointment volumes growing from an average of 30,000 per month in 1Q21 to nearly 40,000 per month by 3Q21. Due to unprecedented demand growth, the company supplemented its supply of doctors with short term contractors which resulted in a decline in margins. DOC has now increased capacity for 45,000 consultations per month from September 2021 and we expect a bounce in margins for the final quarter with ongoing margin growth in CY22.”

The post Down 50%: Broker tips A2 Milk (ASX:A2M) and this ASX share to rebound in 2022 appeared first on The Motley Fool Australia.

More reading

• In the ‘dog basket’: 6 ASX shares that could rebound in 2022
• The stories that rocked the ASX 200 in 2021 revisited
• 2 small cap ASX shares for 2022 with big potential
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022
• What’s the outlook for the A2 Milk (ASX:A2M) share price 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 Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended A2 Milk and Doctor Care Anywhere Group PLC. 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 has performed well during December so far.

Since finishing November trading at $93.50, the company’s stock has gained 5.66%.

As of Wednesday’s close, the Rio Tinto share price is $98.80.

Let’s take a look at what might have helped boost the resources giant’s shares lately.

What’s driving the Rio Tinto share price lately?

The Rio Tinto share price has likely been buoyed amid news of two major lithium projects this month.

The first, the $3.3 billion Jadar project, is reportedly facing continuous challenges. However, Rio is set to acquire the other, the Rincon lithium project in Argentina.

Rio Tinto announced its intention to purchase the Rincon project for around $1.15 billion last week. The project is capable of producing battery-grade lithium and is located in the South American country’s ‘lithium triangle’.

Unfortunately, reports of the Jadar project aren’t so encouraging. While Rio Tinto hasn’t released news of the project to the ASX, it has been the subject of media speculation.

Earlier this month, it was reported that authorities in Serbia – where the Jadar project is located – had halted the project’s approvals following major protests where locals voiced concerns about the mine’s environmental impact.

Since then, the managing director of the company’s Serbian subsidiary reportedly told a local media outlet that Rio Tinto intends to halt works at the project to engage with the local community.  

Also likely driving Rio Tinto’s stock this month is the growing price of iron ore. According to data from CNBC, the price of the commodity is 18% higher than it was at the end of November.

The company also announced the successor of its chair in December. Rio Tinto’s current chair Simon Thompson will step down from the role in May. Former McKinsey and Company global managing partner Dominic Barton will replace him.

Despite its December gains, the Rio Tinto share price is still in the red long term. Right now, it is around 14% lower than it was at the start of 2021.

The post Rio Tinto (ASX:RIO) shares are enjoying a Santa rally of their own this month. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why is Macquarie bullish on these 3 ASX shares?
• Is this ASX sector gearing up for a year of M&A activity?
• 5 things to watch on the ASX 200 on Wednesday
• Top brokers name 3 ASX shares to buy next week
• ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise

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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Long-term ASX share investing could be the right way to generate solid returns.

There are some options that could provide a good performance if they can continue the growth they have already been producing for a while.

Here are two options to consider:

Betashares Nasdaq 100 ETF (ASX: NDQ)

This is one of the largest exchange-traded funds (ETFs) on the ASX with ne assets of more than $2.7 billion.

This ASX share is about providing investors with exposure to 100 of the largest businesses on the NASDAQ, which is a stock exchange in the United States. Not every US business is on the NASDAQ, there are others that are on the New York Stock Exchange.

However, the composition on the NASDAQ means that many of its biggest constituents are actually some of the world’s largest technology businesses such as Apple, Amazon, Alphabet (Google), Facebook/Meta, Tesla and Nvidia.

But there are plenty of high-quality businesses in this portfolio that are either leaders in the country or global leaders at what they do including Adobe, PayPal, Cisco, Costco, Broadcom, Qualcomm, Advanced Micro Devices, Moderna, Intuitive Surgical and so on. It’s a long list of recent winners.

Past performance is no guarantee of future results, however since inception in May 2015, the Betashares Nasdaq 100 ETF has delivered an average return per annum of around 24%.

Management costs are currently 0.48% per annum from BetaShares.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a rapidly growing ASX share that specialises in providing affordable and stylish jewellery.

It has a global retail store network. Lovisa has a presence in many countries including Australia, South Africa, the USA, Malaysia, France, New Zealand, Singapore, the UK, Belgium, Germany, the Netherlands, Switzerland and Spain.

UBS is one of the brokers that likes Lovisa at the moment, with a price target of $21.25. The broker is attracted to the potential for the business to materially increase its store network over time.

It recently hired a new CEO, Victor Herrero, that has past experience with growing businesses in Asia and this could lead to Lovisa opening compelling store networks in China and India.

In a recent trading update, the ASX share said that global comparable store sales for the first 20 weeks of FY22 continued a “strong trajectory” with growth of 25.2% year on year. Total sales were up 46.1% despite the impacts of the ongoing lockdowns in Australia, New Zealand and Malaysia.

It currently has 570 stores in the global Lovisa store network, with 31 new stores opened since the end of FY21.

Lovisa continues to expand geographically. It recently opened two new franchise stores in Cyprus, bringing the geographical coverage to 21 countries globally.

The Lovisa share price is currently valued by UBS at 33x FY23’s estimated earnings.

The post Are these 2 strong ASX growth shares to buy? appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• 3 ETFs for smart ASX investors in 2022
• Why Afterpay, Lovisa, Liontown, and Pilbara Minerals shares are racing higher
• Is it a buy? Why UBS is bullish on the Lovisa (ASX:LOV) share price
• How will ASX retail shares go in 2022?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Lovisa 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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ASX shares that represent lithium miners and processors have done very well the last couple of years.

The element has seen skyrocketing demand triggered by the world’s transition from cars that burn fossil fuels to those that run on electric power.

Electric vehicles require massive batteries, and lithium is a major ingredient for them.

“We only have to look at the recent results from South American lithium behemoth Sociedad Quimica y Minera de Chile (NYSE: SQM) to see the dramatic effect that rising prices have had on profitability,” read a memo from Marcus Today.

“SQM made a big jump in 3Q earnings this year from US$1.7m in 2020 to US$106m. Revenues were up 46.1% on higher prices and more production.”

We need more lithium and Australia is a major producer

The thirst for lithium will not be quenched anytime soon.

“There are 200 new battery megafactories in the pipeline by 2030 and 122 are already operational. China is pegged for 148 of them,” read the Marcus Today memo. 

“If all 200 were to be producing batteries at full capacity, annual demand would be 3 million tonnes. To put that in perspective, that is 37 times what was produced in 2020.”

Even though the US is a leader in new technologies, and is the home of EV leader Tesla Inc (NASDAQ: TSLA), the country surprisingly doesn’t produce much lithium itself.

“Australia, Chile and China now produce 88% of global lithium,” stated the Marcus Today team. 

“The US has only one lithium producing mine.”

So this gives Australian investors a golden opportunity to cash in.

The trouble is, most ASX shares that have anything to do with lithium have already skyrocketed in price.

The Marcus Today team thus picked out 3 ASX lithium shares that haven’t fully popped yet. Two are speculative buys, while one has firmer prospects.

This miner has 3 lithium projects

Piedmont Lithium Inc (ASX: PLL) shares have doubled since the start of the year, but all of that gain was realised by mid-February. Thus, the stock price has been flat for 10 months.

“This company has a North American focus in North Carolina. It has hard rock lithium in 3 locations,” stated the Marcus Today team.

“It is going through… environmental hurdles. There are still plenty of boxes to be ticked.”

However, the memo noted this is not a binary outcome stock, as Piedmont has other projects in progress — one in Canada and another in Ghana.

“Capex again will be relatively high at $839 million but it should pay that back in under three years,” the team stated.

“Just for good measure, it is also ESG friendly.”

2 other ASX shares for a lithium play

The two more speculative buys the memo mentioned are Sayona Mining Ltd (ASX: SYA) and Ioneer Ltd (ASX: INR).

Sayona co-owns a site in Quebec, Canada with Piedmont.

“Piedmont effectively owns a 39.6% economic interest in Sayona Quebec,” stated Marcus Today. 

“Just to give Sayona an Australian flavour, it also has projects in WA, including a gold project and graphite in the Kimberley. Sayona has a market cap around $1 billion but clearly has potential.”

The Sayona share price started 2021 at 1 cent but closed on Wednesday at 13 cents.

Meanwhile, Ioneer is working on a project called Rhyolite Ridge in the inland US state of Nevada.

“US Lithium is especially attractive given the president has decreed that lithium is a strategic white powder.”

The coming year could be huge for Ioneer shares, as financing should be finalised with a possible first shipment of lithium in the second half of 2022.

But the project is facing some environmental hurdles, with a plant named Tiehm’s Buckwheat only growing in one place in the world.

“That’s right, on the Rhyolite Ridge in Nevada,” read the Marcus Today memo. 

“Ioneer is not without its issues but, given the strategic nature of the project, the company will move heaven and earth (and Buckwheat) to satisfy the environmental concerns.”

Ioneer shares started the year at 28 cents but were going for 78.5 cents on Wednesday afternoon.

The post 3 obscure lithium ASX shares ready to pop in 2022 appeared first on The Motley Fool Australia.

More reading

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• The ASX share market coverage that captivated readers in 2021
• Why Tesla stock perked up today
• Aussie investors now hold more Tesla than Woolworths (ASX:WOW)
• Why Tesla stock jumped on Tuesday

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

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Cochlear Limited (ASX: COH) has been a staple for many ASX share portfolios in the past decade.

The hearing device maker has handsomely rewarded its original investors with a 2,350% return, according to Google Finance, and a 13.8% gain over 2021.

However, this year has ended on a sour note, as the share price actually has fallen more than 14% since its August high.

So where to from here? Is it one to buy for 2022?

‘Sales have stagnated’

Redpoint Investment Management chief Max Cappetta told The Motley Fool that “revenue growth has faltered” recently for Cochlear.

“Implant sales have stagnated during the COVID pandemic.”

Despite sound business prospects, Cappetta reckons that the valuation is “stretched” at the moment.

“Our metrics do point to a resurgence in revenue growth but this seems to be fully priced in at present,” he said.

“While there are improving prospects going forward, there also remains the potential for competing products — though we note that the Cochlear’s devices remain clear market leaders.”

Cochlear shares are dividing the experts

It seems Cochlear shares are polarising analysts.

The Motley Fool’s Zach Bristow reported earlier this month that out of 4 major investment houses, one is bearish, one is neutral and two are slightly bullish on the stock.

Goldman Sachs has set a target of $197 a share, which is about a 10% downside from Wednesday morning’s price of $218.18.

“The firm says that Cochlear’s surgery volumes remain at risk due to their elective nature. It notes that Australian surgery numbers are yet to recover to pre-pandemic volumes,” Bristow reported.

“Goldman Sachs recognises these challenges and reckons Cochlear is a sell in a recent note to clients.”

Meanwhile Citi is neutral with a $220 target, while Jarden and Macquarie rate Cochlear as a “buy” with targets of $258 and $256 respectively.

According to CMC Markets, 8 of 12 analysts are recommending a “hold” for Cochlear shares as the year winds down.

The post Where are Cochlear (ASX:COH) shares headed in 2022? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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