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Trading on the Australian exchanges has been choppy today. The benchmark S&P/ASX 200 Index (ASX: XJO) has slipped into the red in afternoon trading while the All Ordinaries index (ASX: XAO) is also in negative territory.

Despite the broad market’s downturn, these 3 ASX shares have smashed it out of the park today, with each nudging past its prior 52-week high.

Let’s investigate further.

National Australia Bank Ltd (ASX: NAB)

Shares in banking giant NAB popped from yesterday’s close to hit a new 52-week high of $30.30 today.

After the release of its full year results, investors are eager to claim a spot in the bank’s share register.

Not surprising considering NAB recognised a 77% increase in its cash earnings for the year to $6.56 billion. The bank attributes this to strengths in all its operating segments, including corporate, business, and private banking.

The market has responded positively to the bank’s FY21 performance today, sending its share price into the green directly from the open.

Brokers have responded positively too with both Goldman Sachs and JP Morgan reiterating their buy and overweight ratings on the NAB share price respectively.

Both firms like NAB’s balance sheet expansion and see a strong earnings outlook for investors to bite down into for the coming periods.

JP Morgan, for instance, reckons NAB has “a return on equity profile second only to CBA in the major banks”.

Shares in NAB were trading at $30.07 at last peek, currently 4% higher from the open.

Megaport Ltd (ASX: MP1)

Megaport’s share price nudged its 52-week high directly from the open today before retracing down into negative territory shortly afterwards.

It has since reclaimed some territory and is now inching 0.12% higher at $20.33 – a short distance off its single-year high of $20.88.

Zooming out, we see that Megaport shares have been trudging northwards since early October, ahead of the S&P/ASX All Technology Index (ASX: XTX).

The index, of which Megaport is a constituent, has gained almost 7% since coming off a low last month. During the same period, Megaport also bounced off its low and has climbed more than 28%.

This comes after the global elastic interconnection services provider released its trading update last month. Investors now seem satisfied Megaport’s future earnings outlook appears bright.

As investors continue bidding up the Megaport share price, analysts at Macquarie Group Ltd (ASX: MQG) reckon the company could climb another 20% and reach a target of $24.

The broker arrives at this valuation from its own modelling that forecasts Megaport’s port utilisation to hit 75% by FY24, up from 47% in FY21.

It also likes Megaport’s Network-as-a-Service business model that has attracted customers such as eBay, Uber, and Zoom.

Best & Less Group Holdings Ltd (ASX: BST)

Best & Less shares shot past its 52-week high today, topping at $4.33 before swinging back down into the red in afternoon trade.

At the time of writing, shares in the apparel and retail business are changing hands at $4.02 apiece, almost 4.5% down on the day.

Notably, the Best & Less share price has gained around 10% in the last week, despite no market sensitive information from the company.

However, both the S&P/ASX 200 Consumer Discretionary index (XDJ) and the S&P/ASX 300 Retailing index (AXRTKD) have also gained steam in the past week, indicating strengths in the broad sector.

Investors are piling into retail and consumer discretionary shares as the economy slowly begins to reopen from COVID-19, alongside the rest of the world.

Many individual and institutional investors are betting on a ‘reopening’ trade to capitalise on this momentum.

The post Race to the top: These 3 ASX shares all smashed new 52-week highs today appeared first on The Motley Fool Australia.

More reading

• NAB (ASX:NAB) share price lifts as CEO calls for mortgage buffers to stem soaring house prices
• Why Chalice Mining, Life360, Kogan, and NAB shares are storming higher
• These 3 ASX shares have just been named as broker buys
• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• NAB (ASX:NAB) share price hits 52-week high on bullish broker note

The Motley Fool writer Zach Bristow 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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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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The Beach Energy Ltd (ASX: BPT) share price is sliding today amid the company’s hosting of its annual general meeting (AGM).

At the time of writing, the Beach Energy share price is $1.29, 1.53% lower than its previous close.

Here’s what might have sparked the market’s negative sentiment today.

Is Seven Group looking to sell?

Today is the second day in a row the Beach Energy share price has declined.

It dropped 1.8% yesterday after rumours that its major shareholder, Seven Group Holdings Ltd (ASX: SVW) was looking to sell its stake in the company hit headlines.

At today’s AMG, Beach Energy’s chair, Glenn Davis announced Kerry Stokes is stepping down as a member of Beach’s board.

Kerry Stokes is the chair of Seven Group. Seven Group’s CEO and managing director, Ryan Stokes will remain on Beach Energy’s board.

While Kerry Stokes’ stepping down might have fanned the rumours of an eminent sell-off, Beach Energy’s acting CEO, Morné Engelbrecht refuted them. Engelbrecht asserted:

I can tell you Seven Group Holdings have confirmed that that article is baseless. I also note that Seven Group did acquire another 1.5% of the register last financial year.

What else happened at Beach Energy’s AGM?

Overall, Beach Energy’s AGM was quite positive.

Engelbrecht announced the company had a strong start to financial year 2022.

Beach Energy had a net cash position of $43 million as of 30 September.

The company is on track to deliver on its planned 2025 production of 28 million barrels of oil equivalent. That target excludes potentially successful explorations and pre-final investment decision projects – though, it does include the company’s Enterprise Project.

By the end of 2023, Beach Energy expects to have 8 gas plants producing from 5 basins. The plants will deliver gas to 4 markets including the East Coast gas market and the global LNG market.

From financial year 2024, it expects to be in a position of material free cash flow.

Finally, by 2050 Beach Energy plans to be a net zero emissions producer.

Beach Energy share price snapshot

The Beach Energy share price has been struggling lately.

It has fallen 12% over the last month. It is also currently 30% lower than it was this time last year.

The post Why is the Beach Energy (ASX:BPT) share price continuing to slide on Wednesday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Beach Energy (ASX:BPT) share price dips amid news Seven may dump 30% holding
• These were the worst performing ASX 200 shares last week
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Beach Energy (ASX:BPT) share price down 6%?

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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Value is emerging in the CSL Limited (ASX: CSL) share price even though it has largely gone nowhere in the last 12 months.

However, that might be about to change after Macquarie Group Ltd (ASX: MQG) upgraded the blood products biotech to “outperform” from “neutral”.

The move has yet to make much difference to the CSL share price. It’s trading just under breakeven at $314.64 during lunch time trade.

It’s pretty much the same story for the S&P/ASX 200 Index (Index:^AXJO), which just slipped into negative territory.

Outlook improving for the CSL share price

Coming back to CSL, the analysts at Macquarie believe the headwinds that have held back its shares are easing.

The first headwind comes from rivals who are pioneering new treatment options for myasthenia gravis (MG) and idiopathic thrombocytopenic purpura (ITP). For the geeks out there, the new treatment is based on neonatal Fc receptor (FcRn).

The new treatment negates the need for immunoglobulin (Ig), which are antibodies extracted from blood. Ig is something that CSL sells.

MG is a condition where patients suffer abnormal weakness of certain muscles. ITP is a blood disorder characterised by a decrease in the number of platelets in the blood.

New rival treatment not a significant threat

Based on current trial results, Macquarie believes that the new treatments could displace around 6% of CSL’s Ig volumes by 2030.

“However, CSL is currently in Phase 3 trials for Hizentra in the treatment of patients with CLL (and HGG) and DM,” said the broker.

“We estimate approval in these indications could provide volume upside of ~4%, providing an offset to impacts from FcRn antagonists in MG and ITP.”

CLL is chronic lymphocytic leukemia and HGG is high-grade gliomas. DM is Diabetes mellitus.

Additional tailwinds for the CSL share price

The broker also believes there will be an increase diagnosis of conditions where Ig is used as a treatment. This will undoubtedly be a boon for the CSL share price too.

Further, the COVID-19 disruption to CSL’s blood collection in the US is easing and its new plasma collection platform may present upside for the group.

How much is the CSL share price worth?

“For CSL, we also see a new plasma collection platform as potentially improving plasma collection efficiency,” added Macquarie.

“This forms the basis for improved gross margin forecasts for CSL Behring from 2H23+.

“Notwithstanding elevated multiples, we see a favourable EPS growth profile and strong balance sheet as attractive.”

Macquarie’s 12-month price target on the CSL share price is $338 a share.

The post CSL (ASX:CSL) share price is the latest to be upgraded by a top broker appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Investors are buying up ARB (ASX:ARB) shares this month, but the company chair has been selling
• Why are ASX 200 mining shares having such a lousy day?
• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• Own CSL shares? Here’s what’s in the development pipeline

Motley Fool contributor Brendon Lau owns shares of CSL Ltd. and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie 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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It was only a few weeks ago that we were discussing the wildly successful initial public offering (IPO) of the Li-S Energy Ltd (ASX: LIS) share price. This hot battery share hit the ASX boards on 29 September and immediately saw a 174% rise by the end of its first day of trading. The share price soared from the IPO price of 85 cents a share all the way to $2.33 by the end of the day.

The company’s second day of life on the ASX boards saw Li-S Energy gain another 3% or so, and even hit $3.05 a share. That’s its current all-time high.

But the more recent weeks of Li-S Energy’s life haven’t been as sweet for investors. Today, this company is currently (at the time of writing) trading for $1.98 a share. At that price, Li-S Energy is now more than 15% from where this company closed at on its first day of trading. And more than 35% from its all-time high of $3.05 a share. Over the past month, the company has lost 15.8%. That’s including 10.8% in just the past trading week.

So what’s gone wrong for Li-S Energy, the company that so excited investors upon its ASX IPO?

Li-S Energy share price comes under pressure

Well, it’s not entirely clear. We did get a quarterly update from Li-S Energy at the end of last month for the quarter ending 30 September. This update informed the markets that Li-S has raised $34 million from its “oversubscribed” IPO. It also stated that the company had $50.5 million in cash and cash equivalents as of 30 September. The company said:

Of this [$50.5 million], $29.1 million is earmarked for project expenditure, plus working capital of more than $16.0 million to fund potential expansion and acceleration of existing projects, commencement of new development projects and the pursuit and engagement in revenue generating opportunities…

It also told investors that “net cash flows used in operating activities during the quarter were $1.8 million”.

Further, Li-S Energy gave an update on the “substantial progress” its eponymous lithium-sulphur battery technology has enjoyed over the quarter. According to Li-S Energy, “extended cycle testing” on some of this technology showed batteries “reaching 900 charge/discharge cycles at greater than 60% retained capacity”. Additionally, the ‘Li-Nanomesh’ technology that the company has also been working on has also shown progress.

So it’s not entirely clear if this update had any meaningful role in the Li-S Energy share price slide that the company has been enduring in recent weeks. It’s possible of course. But it’s also possible that investors got a little too excited when this company IPOed and are now letting out some steam.

At the current Li-S Energy share price of $2.01, this company has a market capitalisation of $1.34 billion.

The post The Li-S Energy (ASX:LIS) share price is still running low. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Li-S Energy (ASX:LIS) share price stalls despite ‘enviable’ battery opportunity
• Why has the Li-S Energy (ASX:LIS) share price dropped 23% since its ASX IPO?

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Looking for crypto investing advice?

You’re not alone.

With Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) both breaking into new all-time highs in recent days, investor interest in cryptocurrencies is booming.

And if rocketing prices weren’t enough, last week saw the launch of the first ASX listed crypto-related exchange-traded fund (ETF).

The BetaShares Crypto Innovators ETF (ASX: CRYP) kicked off on the ASX last Thursday. Rather than investing directly in Bitcoin, Ether or other altcoins, the ETF offers investors exposure to a range of crypto mining and blockchain-related companies.

By the end of its first day of trading, the crypto ETF notched up net buys of $39.7 million, breaking all the records for an ETF on its first day of trade. (Details here.)

CommBank enables customer crypto services

Last week also saw Commonwealth Bank of Australia (ASX: CBA) become the first Aussie bank to offer crypto services to its customers. Aside from Bitcoin and Ethereum, CommBank reported its customers will be able to buy, sell and hold up to 10 selected cryptos, including Bitcoin Cash (CRYPTO: BCH) and Litecoin (CRYPTO: LTC).

But don’t go asking CBA’s certified financial advisers which tokens have the better outlook.

In fact, as The Australian reported, you likely won’t get that advice from any of Australia’s 20,000 qualified advisers.

Their lips are sealed by red tape

It looks like this is a situation where slow-moving government regulations can’t keep up with the rapid pace of crypto adoption.

As it stands, Australia’s small army of financial advisers aren’t allowed to offer any advice on crypto at all. Rather ironically, people outside of certified financial advisers can offer most any kind of personal insights into cryptos they see fit across a range of social media.

Part of the problem lies with advisers’ professional indemnity insurance.

A recently renewed financial adviser professional indemnity insurance contract, as reported by The Australian, stipulates:

The policy is extended (to include) virtual currency exclusion arising directly or indirectly from or in any way connected with cryptocurrency, alternative cryptocurrency, digital currency, or any other form of virtual currency.

Now advisers might be able to advise so-called “sophisticated investors” on their virtual currency investing plans. Which is also rather ironic as these high experience, high wealth investors are likely in less need of exactly this type of advice than mum and dad investors.

Commenting on the situation, financial adviser James Gerrard said, “We have a very odd situation now that I can’t, under the terms of licence or insurance, advise on something from CBA.”

Dante De Gori, CEO of the Financial Planning Association, added, “The current restrictions are going to have to change. First, we have to get advisers qualified in the topic, then we have to get licence issues sorted out and crucially we are going to have to get the insurers to come on board.”

Until the red tape is sorted, however, crypto investors would do well to do their own thorough research. And never invest more than they can afford to lose.

The post Looking for crypto investing advice? Why your financial adviser’s lips may be sealed appeared first on The Motley Fool Australia.

More reading

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• The total value of crypto just surpassed US$3 trillion, what’s next?
• Why Dogecoin, Shiba Inu and Bitcoin investors should ‘follow’ Elon Musk
• Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is trading lower. At the time of writing, the benchmark index is down 0.1% to 7,425.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling lower:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 2.5% to $116.48. The catalyst for the weakness in this buy now pay later provider’s shares was a pullback in the Square share price overnight. As Square is acquiring Afterpay through an all-scrip deal, the value of the takeover proposal rises and falls with the Square share price.

Immutep Ltd (ASX: IMM)

The Immutep share price is down 15% to 59.5 cents. Investors have been selling this biotech company’s shares following the release of data from a Phase IIb trial on its lead drug candidate, etfi. It was being trialled as a combination therapy with paclitaxel chemotherapy in patients with HER2-negative/HR positive metastatic breast cancer. It appears as though the results were not as strong as the market was expecting.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price has sunk 13.5% to $1.55 following the release of its half year results. Although Pushpay delivered underlying EBITDAFI growth of 12% to US$29.6 million, it wasn’t strong enough for management to maintain its full year guidance. It has downgraded its underlying EBITDAFI guidance to between US$62 million and US$67 million. This compares to US$66 million and US$71 million previously.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is down 4% to $10.50. This is despite the lithium developer releasing an announcement this morning. This announcement appears to have been overshadowed by its ongoing short seller attack and broad weakness in the lithium sector today.

The post Why Afterpay, Immutep, Pushpay, and Vulcan shares are falling appeared first on The Motley Fool Australia.

More reading

• Immutep (ASX:IMM) share price slides 20% despite latest trial results
• Pushpay (ASX:PPH) share price crashes 20% on results and guidance downgrade
• Why the Vulcan (ASX:VUL) share price is rising on Wednesday
• Are these 2 beaten-up ASX tech shares now bargain buys?
• Don’t get short with me! Vulcan Energy (ASX:VUL) share price continues dive amid lawsuit

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 AFTERPAY T FPO and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and PUSHPAY FPO NZX. 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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Those who use share trading platform Superhero to invest in Qantas Airways Limited (ASX: QAN) could be in for a double whammy.

Superhero has teamed up with Qantas Frequent Flyer to offer the platform’s users rewards.

At the time of writing, the Qantas share price is $5.72, 2.05% lower than its previous closing price.

Let’s take a closer look at the new benefit available to Superhero users.

Trade shares with Superhero – take off with Qantas

Here at The Motley Fool Australia, we’re well versed in the benefits of investing. And now, there’s a new one.

Investors using Superhero to facilitate their trades might soon have a holiday on the cards. They can now earn up to 15,000 Frequent Flyer bonus points by using the platform.

Superhero’s co-founder and CEO John Winters said of the deal:

There’s been a big generational shift for Australians to become more engaged with their finances – and this partnership will help us support more Australians with their investing and wealth goals – as well as literally helping them to take to the skies with Qantas.

Starting today, and for a limited time, Superhero users can get 10,000 Frequent Flyer bonus points by transferring an existing share portfolio to Superhero.

Another 5,000 Frequent Flyer bonus points are on offer through completing 10 eligible trades, each worth 500 bonus points.

After that, users can earn 100 Frequent Flyer points per trade. They will also be able to receive 1 Frequent Flyer point for every US$5 transferred from Australian dollars.

Qantas Loyalty’s CEO Olivia Wirth also commented on the partnership, saying:

Frequent flyers can earn points walking, sleeping, shopping, flying and now share trading…

Research shows that almost nine million Australians hold shares, so we think being able to earn points while trading shares will be popular with a large number of our frequent flyers. 

The offer will run until 28 February 2022.

The post Qantas (ASX:QAN) Frequent Flyer just inked a deal with Superhero. Here’s the lowdown appeared first on The Motley Fool Australia.

More reading

• Is the Qantas (ASX:QAN) share price a buy as borders open?
• Here’s why travel shares led the ASX 200 on Monday
• Why the Qantas (ASX:QAN) share price is flying 4% higher today
• The Qantas (ASX:QAN) share price is lifting, but returning planes to the air isn’t without challenges
• Qantas (ASX:QAN) share price climbs as overseas travel ban lifts

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 National Australia Bank Ltd. (ASX: NAB) is marching higher, up 4.26% in afternoon trade to $30.12 per share.

The NAB share price is well outpacing the 0.10% loss posted by the S&P/ASX 200 Index (ASX: XJO) at this same time.

That’s the share price action.

Now here’s what NAB’s CEO Ross McEwan, is advising regulators do, in order to rein in rocketing house prices Down Under.

How can Australia slow its runaway housing prices?

In comments unlikely to have a material impact on the NAB share price today, McEwan addressed Australia’s rocketing home prices after the bank released its full year financial results on Tuesday. Those results included a 77% increase in the bank’s cash earnings.

McEwan said Australia could not afford to see the next 12 months of house price gains follow in the path of the past 12 months.

Indeed, a look at the latest figures from CoreLogic confirm that the past 12 month’s price growth is unsustainable.

Spurred by rock bottom interest rates, Sydney house prices have soared more than 30% year-on-year, as at 31 October. Melbourne house prices, despite a year spent largely in lockdown, rocketed 20%. And Brisbane house prices are up 25% since this time last year.

Unit prices (apartments) also showed rapid growth across Australia, though in most cities they were outpaced by the price growth in standalone homes.

Those figures are a red flag for NAB’s McEwan, who said (quoted by the Australian Financial Review), “We cannot see another 20% house price growth over the next 12 months. We cannot afford to have that happen in the Australian marketplace.”

To give you some idea of why 20% annual dwelling price growth is raising red flags, this level of growth would see house prices doubling every 3.6 years. Meaning that just over 10 years from now, Aussie house prices would be 8 times what they are today. And in 14 years, home prices would be 16 times what they are today. And in 17.6 years they’d be… Well, you get the idea.

Recognising that unsustainability, McEwan suggested the Australian Prudential Regulation Authority (APRA) should again increase its “serviceability buffer”. APRA increased the serviceability buffer by 0.5% on 31 October.

McEwan said:

They could always move that again. My view, and discussions with the regulator, have been that it is the simplest way to have an impact… You’re seeing that already coming through in fixed rate mortgages. The interest rates are moving upwards because of bond markets and so is the cost of funding for us long term.

NAB share price snapshot

Over the past 12 months the NAB share price has gained 42%, more than double the 18% gain posted by the ASX 200 in that same period.

NAB shares are up 6% over the past month.

The post NAB (ASX:NAB) share price lifts as CEO calls for mortgage buffers to stem soaring house prices appeared first on The Motley Fool Australia.

More reading

• Why Chalice Mining, Life360, Kogan, and NAB shares are storming higher
• These 3 ASX shares have just been named as broker buys
• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• NAB (ASX:NAB) share price hits 52-week high on bullish broker note
• 5 things to watch on the ASX 200 on Wednesday

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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Appen Ltd (ASX: APX)

According to a note out of Citi, its analysts have retained their buy rating and $17.10 price target on this artificial intelligence data services company’s shares. Citi notes that rival Telus released its third quarter results last week and revealed strong growth. The broker believes this hints at improving trends for artificial intelligence data projects from the major technology companies. This could bode well for demand for Appen’s services. The Appen share price is trading at $10.79 today.

Catapult Group International Ltd (ASX: CAT)

A note out of Morgans reveals that its analysts have retained their add rating and $2.45 price target on this sports analytics and wearables company’s shares. This follows Catapult’s investor briefing which saw management speak about its $2.6 billion total addressable market. While Morgans acknowledges that it is hard to verify the size of Catapult’s market, it is confident that the company has ample room to grow in the coming years. Morgans is also supportive of management’s strategy of up-selling and cross-selling products. The Catapult share price is fetching $1.74 on Wednesday.

CSL Limited (ASX: CSL)

Analysts at Macquarie have upgraded this biotherapeutics giant’s shares to an outperform rating and lifted its price target on them to $338.00. According to the note, the broker believes CSL’s medium to long term outlook is positive. This is thanks to increasing demand for its immunoglobulin products. In addition, Macquarie expects CSL’s new plasma collection platform to be more efficient and improve collections. The CSL share price is trading at $314.63 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• Own CSL shares? Here’s what’s in the development pipeline
• Can Appen (ASX:APX) shares rise to glory again?
• Alcohol and intelligence: 2 ASX shares on the way up
• These ASX shares could be quality options for growth investors

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, CSL Ltd., and Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Catapult Group International 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 ARB Corporation Limited (ASX: ARB) share price has risen by around 13% over the last month.

That compares to the S&P/ASX 200 Index (ASX: XJO) which has only risen by 2%, meaning ARB has outperformed the index by more than 10%.

However, whilst ARB shares have continued to go up, the company’s leadership has been selling shares.

Leadership share sale

Mr Roger Brown is the chair of ARB, the four-wheel drive accessories business. Andrew Brown is the managing director of ARB. Their shares are held ‘in common’, which essentially means the ARB shares they own are held in entities they both have an interest in.

In May 2019, there was a sale of 2 million shares at a price of $18.50 per share.

On 4 November 2021, there was another sale of 1 million shares at an ARB share price of $49.50. That implies that the sale amounted to around $50 million of ARB shares.

However, whilst the sale was done at a price of $49.50, the current ARB share price is now 6% higher at $52.60.

Is the ARB share price overvalued?

Investors may be wondering if this means that the management believe the stock is priced too highly. Only the leadership know the answer to their own their thoughts about the business valuation.

But, history has shown the ARB share price has risen substantially (up 184%) from the last share sale. Time will tell whether the same applies again here.

It may be useful to know what analysts think about the business value at the moment.

Some recent broker notes have been positive about the business. Both Morgan Stanley and Citi think ARB is still a buy, with price targets of $56 and $55.45 respectively. After seeing the recent trading update, the brokers think that FY22 will show growth after the COVID impacts.

On Citi’s numbers, the ARB share price is valued at 37x FY22’s estimated earnings.

Outlook

In the company’s annual general meeting (AGM) update, it said that in the first quarter of FY22 it saw “pleasing sales and profit growth”.

However, there are a number of challenges in the current environment including vehicle supply interruptions, COVID-19 related impacts and the cost and reliability of freight services.

It said that its order book remains strong, both domestically and internationally, and it’s continuing its product development work, store development program in Australia and the expansion of its manufacturing capability.

ARB is expecting sales and profit growth to continue in the first half. It also believes it’s well positioned to achieve long-term success with its brands around the world, increasing manufacturing and distribution capacity and a strong balance sheet to take advantage of opportunities as they arise.

The company also announced a few months ago that a range of ARB accessories would become available at participating Ford dealers for Ranger and Everest vehicles. This will be rolled out in Australia initially, with other selected Ford markets to follow.

The post Investors are buying up ARB (ASX:ARB) shares this month, but the company chair has been selling appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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