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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Appen Ltd (ASX: APX)

According to a note out of Macquarie, its analysts have downgraded this artificial intelligence data services company’s shares to an underperform rating and cut the price target on them to $9.50. The broker notes that there is an emerging trend which is seeing some tech giants bypassing Appen and directly crowdsourcing for data annotation services. In response, the broker has cut its forecasts well below consensus estimates and suspects the company could soon downgrade its guidance. The Appen share price ended the week at $9.45 after falling 19% on Friday.

DEXUS Property Group (ASX: DXS)

A note out of Citi reveals that its analysts have retained their sell rating and $9.54 price target on this property company’s shares. This follows news that Dexus is selling its 100% owned office asset, 383 Kent Street for $385 million. This is a 1.3% premium to its June book value. While the broker notes that pricing is relatively strong, it highlights Dexus’ active diversification from office properties and sees potential for further weakness in rental markets. It believes this is likely to feed into office asset pricing and weigh on its performance. The Dexus share price was fetching $11.03 at Friday’s close.

TechnologyOne Ltd (ASX: TNE)

Another note out of Macquarie reveals that its analysts have downgraded this enterprise software company’s shares to an underperform rating but with an improved price target of $11.00. This follows the release of the company’s full year results last week. While the broker has increased its earnings estimates for the coming years, it wasn’t enough for a more positive recommendation. Macquarie believes TechnologyOne’s shares are expensive in comparison to peers. The TechnologyOne share price ended the week at $11.56.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Appen (ASX:APX) share price smashed after broker downgrade
• Top brokers name 3 ASX shares to sell today
• Analysts rate these 2 ASX dividend shares as buys
• Why Bapcor, Mayne Pharma, Race Oncology, and TechnologyOne shares are sinking

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 shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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 S&P/ASX 100 Index (ASX: XTO) is home to a number of blue chip shares. Two that have recently been named as buys by analysts at Morgans are listed below.

Here’s why its analysts are bullish on them:

Tabcorp (ASX: TAH)

Morgans is feeling positive about the Tabcorp share price. This is due partly to the belief that the market is undervaluing its Lotteries and Keno (L&K) business.

The broker currently has an add rating and $5.70 price target on the gambling company’s shares.

Morgans commented: “While COVID restrictions have impacted the earnings recovery for Wagering & Gaming Co, we continue to view the risk/return profile of TAH as asymmetrically skewed to the upside over the next ~12 months as the demerger of the high quality, infrastructure-like Lotteries & Keno business progresses.”

“At current levels, we think L&K is trading on ~15x EBITDA and think this multiple can re-rate to between 16-20x on a standalone basis over time, supported by offshore peer comps and domestic infrastructure names,” it added.

Westpac Banking Corp (ASX: WBC)

Another ASX 100 share the broker is positive on is Westpac. Australia’s oldest bank is Morgans’ preferred pick of the majors due to its belief that it offers the most compelling valuation in the group.

And while there were aspects of its recent full year results that disappointed, Morgans believes the sell off that ensued was an overreaction.

Its analysts currently have an add rating and $30.50 price targets on the bank’s shares.

Morgans explained: “We find the management of the margin-volume tradeoff in Australian home lending in FY21 to be disappointing and we hope for better management of this tradeoff going forward.”

“Having said this, our view has been that the stock was not being priced for perfection and was offering considerable value. While the NIM has now re-based notably lower, we continue to see considerable value in the stock particularly due to our expectation of significant cost out by FY24F,” it added.

The post Morgans rates these ASX 100 shares as buys appeared first on The Motley Fool Australia.

More reading

• Westpac (ASX:WBC) share price slips amid ‘material shortcomings’ finding
• Macquarie (ASX:MQG) is now a big four bank
• After falling 15% in a month, is the Westpac (ASX:WBC) share price good value?
• Is the CBA (ASX:CBA) share price premium relative to other big banks justified?
• Are ANZ (ASX:ANZ) and NAB (ASX:NAB) the best ASX bank shares to buy?

Motley Fool contributor James Mickleboro owns shares of 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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Wesfarmers Ltd (ASX: WES) is planning for online growth and digitalisation with Bunnings.

That’s according to reporting by the Australian Financial Review. Bunnings is planning to grow its e-commerce operations, invest in new systems and install a new analytics platform.

How much is Bunnings already selling online?

Bunnings is one of the biggest businesses in Australia. In FY21 it generated $2.19 billion of earnings before tax (EBT) on $16.9 billion of revenue.

Its percentage of online sales is steadily growing. In FY20, 0.9% of sales were online. Then in FY21 it had 2.3% of sales come from online.

At the annual general meeting (AGM), Wesfarmers said that 6% of Bunnings sales had been online in FY22 so far, though lockdowns were impacting the Melbourne and Sydney markets.

Wesfarmers said that all of its businesses have been effective in managing the disruptions on global supply chains and are well positioned with inventory for the important Christmas trading period.

Bunnings’ plans

It was reported that Bunnings wants to improve the customer experience as well as encouraging a friendly atmosphere between people joining the business who are more used to digital things, and existing employees.

Most of the digital transformation is being done by an in-house Bunnings team, not an outsourced IT provider.

Michael Schneider, the boss of Bunnings, says that improving its digital operations is not just about growing online sales, but deepening engagement with 53,000 employees and improving the business for the next generation.

The employee platform that Bunnings is using is Workplace from Facebook, which can create online communities within companies. More than 40,000 employees are using it. Part of the attraction is Bunnings can understand employees better .

One of the things that Bunning has reportedly has done is lifted its game for helping tradespeople. It recently launched a new website that is mobile friendly, compared to the old process of an email system with a click and collection through a smartphone, according to the AFR.

Bunnings has updated its product finder app with interactive store maps. It even shows customers “the best and fastest course around the stores to get all the products on their list.”

It was also reported that lots of commercial customers are using the PowerPass app which allows them to scan as they go around the store and skip the traditional checkout process. In FY21, PowerPass processed 2.2 million transactions, saving 70,000 hours of employee time.

New cloud-based platform

Bunnings is transitioning customer data onto an online platform which will be used for operations of the whole business, including inventory management. This is expected to be finished by the end of FY22. It will come with advanced analytical tools, giving management greater insights about the store network, buildings and systems.

Management commentary

The boss of Bunnings, Michael Schneider, said that the business wants to feature in graduate minds. The AFR quoted him:

I would like them to think it’s a pretty nice shopping experience and the team seem pretty engaged, and it’s probably going to be a good place to work

We are deep in a really genuine tech transformation – we’re going pretty solidly at it, both from a resourcing point of view and an investment point of view.

Those are the sorts of things that when you’re wanting to build your career in the technology space, you’re really looking for, and Bunnings is providing that, alongside all the things that we’re famous for in terms of culture.

The post Wesfarmers (ASX:WES) plans for e-commerce to fuel Bunnings growth appeared first on The Motley Fool Australia.

More reading

• What is the Wesfarmers (ASX:WES) dividend worth in November?
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• How much is the Wesfarmers (ASX:WES) dividend expected to grow in FY22?
• Only a few ASX 200 companies have received this honour and Scentre (ASX:SCG) just joined them
• Why has the Wesfarmers (ASX:WES) share price leapt 8% over the past month?

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 owns shares of 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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Commonwealth Bank of Australia (ASX: CBA) is gearing up to launch crypto trading services on its CommBank app. The decision to support crypto and blockchain technology comes as Australia’s largest bank recognises the risks of not participating.

At Friday’s market close, CBA shares finished the day down 1% to $94.81.

CommBank set to offer crypto-based services

Customers will soon be able to tap into the CommBank app and begin trading across 10 crypto assets. This includes popular coins such as Bitcoin (CRYPTO: BTC), Ether (CRYPTO: ETH), Bitcoin Cash (BCH), and Litecoin (LTC).

The first bank to adopt crypto trading among the big four, CBA wants to become a leader in the digital asset sector. It believes the booming industry is here to stay for the foreseeable future.

In fact, CBA has partnered with the Gemini crypto exchange and blockchain analysis firm Chainalysis to launch its crypto services.

A pilot is scheduled to launch in the coming weeks for a number of limited customers. A full-service rollout is expected to occur sometime in 2022.

It’s clear that inaction by the bank could leave it falling behind as the market quickly adopts the decentralised currencies.

CBA CEO Matt Comyn commented:

We see risks in participating, but we see bigger risks in not participating. It’s important to say that we don’t have a view on the asset price itself, we see it as a very volatile and speculative asset, but we also don’t think that the sector and the technology is going away anytime soon.

However, the Australian Securities and Investments Commission (ASIC) remains cautious on crypto and its technology. The national corporate regulator noted that it is unable to oversee the sector and presents risks for investors. This is because the asset class does not come under the banner of “financial products” within Australia.

ASIC chair Joe Longo recommended that investors refrain from putting all their hard-earned savings in crypto. Instead, they should opt for a diversified approach across a number of different asset classes to safeguard them from volatile movements.

About the CBA share price

In 2021, the CBA share price added around 15% in value for investors. However, when looking at this time last year, its shares are up roughly 17%, highlighting modest returns for a blue-chip company.

On valuation grounds, CBA is the biggest company on the ASX with a market capitalisation of approximately $161.78 billion.

The post Why CBA (ASX:CBA) is spruiking risks of ‘not participating’ in crypto appeared first on The Motley Fool Australia.

More reading

• What’s happening with the CBA (ASX:CBA) share price this week?
• Top brokers name 3 ASX shares to sell today
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• Macquarie (ASX:MQG) is now a big four bank
• Is the CBA (ASX:CBA) share price premium relative to other big banks justified?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company The Motley Fool Holdings Inc. owns shares of and recommends Bitcoin and Ethereum. 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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Market watchers are likely aware of Fortescue Metals Group Limited‘s (ASX: FMG) now-infamous green-hydrogen-focused, renewable energy branch, Fortescue Future Industries (FFI).

The subsidiary has recently signed a contract to build a hydrogen manufacturing equipment facility in Queensland. It has also entered an agreement that will see it selling 10% of its hydrogen output to United Kingdom-based entities.

But, with Fortescue Metals sinking 10% of its profits into the venture, how long will it take FFI to turn a profit?

That question was posed to Fortescue Metals’ CEO Elizabeth Gaines at the company’s annual general meeting earlier this month. Here’s how she responded.

Fortescue Future Industries profitability ‘some time’ away

Unfortunately, Gaines didn’t provide an estimate for how long it will take for FFI to earn its keep. Instead, she noted, “there will be some time between now and [when FFI becomes profitable]”.

However, she did say the business isn’t really about profits:

At the core of the activities of FFI is actually the decarbonisation of Fortescue, and we see that as a very important part of FFI’s activities.

If you think about our goal to be carbon neutral by 2030, we see that as a significant commercial opportunity for Fortescue to generate more profits, to lower our costs, to get a premium for our iron ore – which will be green.

Though, Gaines said the company still predicts its green energy leg will generate “significant profits” in the future:

There’s great reasons to undertake this transition to green energy, but at the forefront of that is the commercial opportunity, and we will use the same discipline we’ve taken in the past to develop in the iron ore business and apply that same rigour and capital discipline to any projects for FFI…

If we don’t decarbonise… we [risk losing] the diesel fuel rebate, we will see a new carbon charge introduced, the cost of offsets will skyrocket…

So, not doing it will actually have a significant detriment on our overall profitability.

Gaines also said the risks facing the company’s bottom line include increasingly volatile fuel costs.

FFI is working to create a fleet of hydrogen-powered vehicles to support Fortescue Metals’ iron ore production. The company’s goal is to make sure the hydrogen-powered fleet is cheaper to run than the diesel-powered alternative.

As of Friday’s close, the Fortescue Metals share price is $17.19.

The post When might Fortescue (ASX:FMG) Future Industries become profitable? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Is the Fortescue (ASX:FMG) dividend really worth 28% in November?
• Here are the top 10 ASX shares today
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• What’s causing the Fortescue (ASX:FMG) share price to leap 9% today?

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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The Afterpay Ltd (ASX: APT) share price will be on watch next week as the world holds its Black Friday sales this weekend.

Shoppers are cashed up and retailers are at the ready for a boom in sales this weekend. Data from the Commonwealth Bank of Australia (ASX: CBA) suggests the four-day period could present another windfall for businesses, with previous years resulting in a 14% boost to spending compared to the prior week.

With buy now, pay later (BNPL) companies now being a prominent method of payment for online shoppers, Afterpay will benefit from any increase in spending over the period.

But, what could it mean for the Afterpay share price?

How have Black Friday sales influenced the Afterpay share price historically?

In the past, Australia’s biggest provider of BNPL services has informed investors of its trading performance following Cyber Monday. In 2019 the company announced a record November sales performance. Afterpay achieved $1 billion in underlying sales for the month ending 30 November 2019.

However, between Black Friday and Afterpay releasing this update in 2019, the share price sank 5.8%. Perhaps investors were looking for a sale on the share market. The Afterpay share price proceeded to flounder around aimlessly for the remainder of the year.

In contrast, last year painted a vastly different picture. What was similar was the BNPL company setting a new monthly sales record with the inclusion of the Black Friday weekend. Afterpay notched up $2.1 billion in underlying sales in a single month — 112% more than the same month in the previous year.

Though, this time the Afterpay share price responded positively between the commencement of the sales weekend and the company’s trading update. Specifically, shares rose 4% in the space of a few days. More impressively, the share price went on to gain nearly 20% by the end of the year.

This year, the Australian Retailers Association and Roy Morgan are forecasting a record $5.4 billion in sales for Australia during the shopping frenzy. As such, Afterpay shareholders will be watching with anticipation to see how well the company does from the sale period.

The post Could the Afterpay (ASX:APT) share price be about to get a boost? appeared first on The Motley Fool Australia.

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• Own Afterpay (ASX:APT) shares? Here’s how the company is pushing for carbon neutrality
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Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 looking for dividend shares to buy next week, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Accent Group Ltd (ASX: AX1)

The first dividend share to look at is Accent. It is a footwear-focused retailer which owns a collection of popular store brands. The popularity of its store brands and their growing footprints have underpinned strong sales, profit, and dividend growth over the last few years.

Unfortunately, FY 2022 looks set to be a difficult year due to lockdowns. For example, during the first 18 weeks of the financial year, store closures across ANZ impacted over 60% of Accent’s store portfolio. This resulted in ~$86 million in lost sales and weaker gross margins.

However, the team at Bell Potter think investors should look beyond this short term headwind and focus on its long term growth potential. As a result, the broker has recently put a buy rating and $3.05 price target on its shares.

As for dividends, Bell Potter is forecasting fully franked dividends per share of 9.1 cents in FY 2022 and 13.5 cents in FY 2023. Based on the latest Accent share price of $2.49, this represents yields of 3.65% and 5.4%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share to look at is this mining giant. It could be a top option for income investors that are not averse to investing in the resources sector. This is due to its attractive valuation, strong free cash flow generation, and its extremely generous dividend yield forecast.

Thanks to its exposure to a number of in-demand commodities such as aluminium, the team at Goldman Sachs believe South32’s shares will provide investors with fully franked dividend yields of greater than 11% per annum for the next five years.

It will therefore come as no surprise to learn that Goldman has a conviction buy rating and $4.40 price target on its shares. This compares to the latest South32 share price of $3.56.

The post 2 excellent ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares brokers rate as buys right now
• South32 (ASX:S32) share price climbs as $2bn copper mine stake gets green light
• Investing for the future: why this fundie is optimistic on copper shares
• Why these ASX 200 shares could be strong buys
• 3 retail ASX shares to buy right now: experts

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 Accent Group. 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 wanting to gain exposure to the energy sector, the good news is that there are plenty of options on the Australian share market. Though, given the very sharp decline in oil prices on Friday night, investors may want to wait for the dust to settle before making a move.

That aside, which ones should you buy ahead of others when the time comes? To help narrow things down, Morgans has revealed a couple of energy shares it believes have major upside potential. They are as follows:

Santos Ltd (ASX: STO)

The first energy share to look at is Santos. Morgans likes the company due to its resilient growth profile and the diversity of its earnings. It also believes the merger with Oil Search Ltd (ASX: OSH) is a big positive.

The broker currently has an add rating and $8.85 price target on Santos’ shares. 

It commented: “We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a continuing broader sector recovery. STO remains our top preference amongst our large-cap energy universe.”

“With early indications supportive of our view that material synergies and enhanced growth plans will result from the OSH merger. While in good shape, we expect STO to continue gaining investor support as it executes on the opportunistic OSH merger,” the broker added.

Woodside Petroleum Limited (ASX: WPL)

Another ASX energy share that the broker is a fan of is Woodside. This is partly due to its proposed transformative merger with the petroleum assets of BHP Group Ltd (ASX: BHP).

Morgans currently has an add rating and $29.95 price target on the company’s shares.

The broker commented: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP).”

“From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options,” it concluded.

The post Leading broker names 2 ASX energy shares to buy appeared first on The Motley Fool Australia.

More reading

• Traditional owners seek stake in $16.8bn Woodside Pluto project
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• Santos (ASX:STO) share price dips despite progress on $21 billion merger
• These are the biggest opportunities on the ASX in 2022: fund manager
• 5 things to watch on the ASX 200 on Thursday

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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There are some wonderful ASX growth shares that may be worth owning for the long-term.

These businesses are ones that are seeing double digit growth of their revenue and may be able to achieve long-term profit growth.

With that in mind, these are two ASX growth shares that are worth knowing about:

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The is a leading exchange-traded fund (ETF) that provides exposure to the global video gaming and e-sports sector.

There is ongoing double digit growth for this industry as more people play video games and watch it for entertainment.

VanEck – the ETF provider – says that video gaming has achieved 12% average annual growth since 2015. E-sports is growing even faster, with revenue growth of 28% per annum since 2015.

The competitive video gaming audience is expected to reach 646 million people globally in 2023, driven in part by the rising population of digital natives. E-sports is considered the world’s fastest growing sport, with the top tournaments getting crowds similar to World Cup football and the Olympic Games.

E-sports has created new potential revenue streams for the companies involved including game publisher fees, media rights, merchandise, ticket sales and advertising.

Some of the businesses involved includes: Nvidia, Advanced Micro Devices, Tencent, Sea, Netease, Activision Blizzard, Nintendo, Take-Two Interactive Software, Unity Software and Roblox. It has a total of 26 names in the portfolio, but the 10 names I just mentioned make up more than 60% of the overall portfolio.

This ASX growth share comes with an annual management fee of 0.55%. The index that this ETF tracks has seen average returns per annum of 30.2% over the last five years.

ELMO Software Ltd (ASX: ELO)

ELMO Software is a technology business that offers services relating to HR, payroll and expense management.

It’s currently rated as a buy by the broker Morgan Stanley, with a price target of $7.80. That’s a potential upside of 50% over the next year, if the broker is right.

The business is growing revenue very quickly. In the first quarter of FY22, annualised recurring revenue (ARR) grew 61% to $88.5 million, with organic ARR growth of 35%. Revenue increased 52% to $20.7 million.

ELMO says that it has strong momentum with a positive macroeconomic backdrop and with small and medium sized businesses continuing to adopt cloud-based solutions to manage a flexible workforce.

The ASX growth share boasts of a number of positive factors with its software as a service (SaaS) model with a high level of recurring subscription revenue, high customer retention, a high level of organic growth and expansion strategies.

In FY22 it’s aiming to break through $100 million of ARR. Guidance for FY22 ARR is between $105 million to $111 million, which would be year on year growth of 25% to 33%. It’s also expecting to achieve positive earnings before interest, tax, depreciation and amortisation (EBITDA) of between $1 million to $6 million.

The company thinks that there is a $12.8 billion opportunity across small business and mid-market in the UK and ANZ.

The post 2 top ASX growth shares that could be worth buying appeared first on The Motley Fool Australia.

More reading

• 4 small cap ASX shares to watch in 2022
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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 shares of and has recommended Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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) was on course to record a small weekly gain before a selloff on Friday. This ultimately led to the benchmark index losing 1.6% of its value over the five days and ending the period at 7,279.3 points.

The good news is that not all shares tumbled lower with the market. Here’s why these were the best performers on the ASX 200 last week:

EML Payments Ltd (ASX: EML)

The EML Payments share price was the best performer on the ASX 200 last week with a 24.3% gain. Investors were buying the payments company’s shares following the release of an update on its dealings with the Central Bank of Ireland. The central bank has advised that it will allow EML’s PFS Card Services Ireland business to sign new customers and launch new programs. In addition, broad-based reductions in limit controls on programs will not be imposed. This appears to have eased concerns that the business could lose its licence to operate in Europe.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price was on form again and stormed a further 17.2% higher over the five days. Investors were bidding the nickel producer’s shares higher after it agreed to expand its partnership with Shanghai Decent. The deal will see Nickel Mines acquire a 70% interest in Shanghai Decent’s Oracle Nickel Project. The project comprises four next-generation rotary kiln electric furnace lines, currently under construction in the Indonesia Morowali Industrial Park. The company will pay US$371 million for the acquisition and provide US$154 million of construction funding.

Fortescue Metals Group Ltd (ASX: FMG)

The Fortescue share price was a positive performer and jumped 11.1% last week. The catalyst for this was a decent rise in the iron ore price which gave the sector a boost. For the same reason, the Champion Iron Ltd (ASX: CIA) share price was a strong performer and rose 9.5% over the period.

NRW Holdings Limited (ASX: NWH)

The NRW share price was on form and pushed 6.1% higher over the period. This was driven by the release of the mining services company’s annual general meeting update. At the event, management advised that following a number of new contract wins, it is maintaining its earnings guidance with a higher degree of certainty. NRW is forecasting operating earnings before interest and tax (EBIT) of $145 million to $155 million in FY 2022. This will be up from $120.6 million in FY 2021.

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

More reading

• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Have ASX shares “gone crazy”?
• These 3 ASX 200 shares are topping the volume charts on Friday
• Here’s why EML (ASX:EML) shares have surged 33% this week

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 shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. 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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