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As most ASX investors would be at least somewhat aware of, the S&P/ASX 200 Index (ASX: XJO) has enjoyed a very decent run of returns in 2021 so far despite the recent bout of market volatility. The ASX 200 closed today up a miserly 0.07% to 7,367 points, placing its year to date gains at a still-robust 11%. But how has the Westpac Banking Corp (ASX: WBC) share price fared?

Westpac is, of course, one of the ASX 200’s major shares, as well as being one of the big four ASX banks. It hasn’t exactly amassed a reputation as a consistent market-beating share either. You could have bought Westpac shares for their current price of $25.56 way back in 2007. That’s a long time to go nowhere.

But let’s not dwell on Westpac’s past and focus on the bumper year shareholders have enjoyed in 2021 so far. Westpac has managed to deliver a year to date gain for investors of 30.36%. That’s roughly triple what the ASX 200 has delivered over the same period.

It also tops the other major ASX banks. Commonwealth Bank of Australia (ASX: CBA) has ‘only’ returned 23.8% year to date so far. National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are up 25.1% and 22.5% respectively.

So why this outperformance from Westpac?

Westpac share price tops ASX banking shares in 2021 so far

To understand that, let’s go back to the horror year this bank had in 2020. Firstly, we had the coronavirus-induced share market crash. Like most ASX shares, Westpac suffered heavily in the early months of 2020, falling more than 40% between 20 February and 23 March.

Westpac was also the only big four bank to entirely write off its 2020 interim dividend. The other banks delayed their payments but Westpac skipped its payout entirely, the first time it had done so in decades.

Not only did shareholders have to contend with a skipped dividend but Westpac’s finances were also dealt a further blow when it received a $1.3 billion fine in September for breaching anti-money laundering laws.

These factors may have contributed to Westpac being the worst-performing ASX bank share out of the entire sector (not just the big four) in 2020.

But perhaps Westpac’s wooden spoon last year has helped it regain the most ground in 2021 so far. The bank has indeed had a relatively pleasing year. Biannual dividends have been restored and Westpac’s interim dividend for 2021 came in at 58 cents per share, a good 87% above last year’s final payment.

Then, in August, Westpac flagged that it might be considering a potential capital return program, possibly via a share buyback.

It’s these positive developments, helped no doubt by the contrast with Westpac’s horror 2020, that may have helped give shareholders a 30% capital return on Westpac shares in 20201 thus far.

At the current Westpac share price, this ASX bank has a market capitalisation of $93.84 billion and a dividend yield of 3.48%.

The post The Westpac (ASX:WBC) share price is up 30% so far in 2021. Here’s why appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Monday
• Why is the WAM Capital (ASX:WAM) share price sliding 4% today?
• 2 gold ASX shares experts are loving right now
• ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 BHP Group Ltd (ASX: BHP) share price is up around 0.5% after the news that the resources giant has found a way to extend the life of its Yandi iron ore mine.

BHP is one of the world’s largest iron ore miners, so being able to extend one of its iron mines could be useful.

How is BHP extending the life of its mine?

It is being reported by the Australian Financial Review that the Yandi mine’s life can be extended by at least five years.

Previously, it had told investors that this mine would come to the end of its life in 2021.

Why is this mine so important? Asian steelmakers reportedly like it because of the low levels of impurities like aluminia.

It has long been practice for mining businesses to use hyperspectral imaging to determine the value of samples.

But, the AFR has reported that BHP’s iron ore division has made algorithms that can read the hyperspectral images to find which parts of the Yandi geology would be most easily processed by its processing plants that sort Yandi’s saleable iron ore from the unwanted material.

A few years ago, Yandi’s processing plants started experiencing extra clay and moisture from the bottom of the mine.

Iron plays the major role in BHP’s profit, which is an important influencer on the BHP share price.

The AFR quoted the Yandi general manager, Mr Heal, who said:

At the end of the mine life, you have dealt with most of what you believe is the good material and you are left with the leftovers.

Three or four years ago we started to see those problems emerge in our [Yandi processing] plant and it was impacting our throughput because of the constant need to clean up spillage and blockages. Things that would require us to stop the plant, clean it up, hose it out.

Through the application of this index and some smarter ways of doing mine planning and scheduling, instead of having a natural decline at the end of our mine life, the last two years have actually been record years for Yandi because we have cracked this problem.

How much iron ore will it be able to produce?

It was acknowledged that future production volume from Yandi may be around 25% of the 68 million tonnes produced in the year to 30 June. However, it’s possible that BHP may be able to get more than five years of life out of the mine. This could help the BHP share price.

Overall, in FY22 BHP is expecting that it’s going to produce between 249 mt to 259 mt of iron ore. That would be a range of between a 2% drop to a 2% rise compared to FY21. In FY21 it produced 254 mt (up 2% on FY20). In FY20 it did 248 mt of iron ore production.

Is iron ore an important part of the future?

BHP said that after its investment in its potash project called Jansen, the proposed separation of petroleum and exit of its non-core coal assets, BHP will be focused on high-quality iron ore and metallurgical coal for the steel that is needed for infrastructure including for renewable energy, copper to support unprecedented demand for renewable energy, nickel for batteries and potash to make food production and land use more efficient.

The post BHP (ASX:BHP) share price lifts amid mine extension news appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Can the BHP share price hit $56 by the end of 2021?
• Legal risk just increased for the Westpac (ASX:WBC) share price
• BHP (ASX:BHP) share price climbs as miner hones in on ESG future
• Own BHP (ASX:BHP) shares? Here’s the miner’s latest push to reduce emissions

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 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 Cochlear Limited (ASX: COH) share price has been a decent performer in 2021.

Since the start of the year, the hearing solutions company’s shares have gained 13% to $214.92.

Could the Cochlear share price hit $260 by the end of the year?

The good news for investors is that one leading broker still sees a lot of upside in Cochlear share price.

According to a recent note out of Macquarie Group Ltd (ASX: MQG), its analysts have an outperform rating and $256.00 price target on the company’s shares.

Based on the current Cochlear share price, this implies potential upside of 19% for investors from current levels. This potential return stretches to approximately 20.5% if you include the $3.04 per share dividend the broker is forecasting in FY 2022.

All in all, Macquarie appears to see potential for the Cochlear share price to be trading close to $260.00 by the end of the year.

Why is the broker positive on Cochlear?

Macquarie was pleased with Cochlear’s performance in FY 2021 and appears to believe the company is well-placed for growth in the coming years.

This is due to Cochlear being positively leveraged to a recovery in activity levels post-pandemic.

Macquarie is forecasting earnings per share of $4.34 in FY 2022, which will be a 20% increase on the earnings per share it reported in FY 2021.

Looking further ahead, the broker is then forecasting more strong growth in FY 2023. It has pencilled in earnings per share of $5.52, which represents an increase of 27.2% on the broker’s FY 2022 estimate.

Based on this, the broker sees a lot of value in the Cochlear share price at the current level and appears to believe the recent pullback could be a buying opportunity for investors.

The post Could the Cochlear (ASX:COH) share price hit $260 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• Top broker sees 19% upside in the Cochlear (ASX:COH) share price
• Analysts name 3 stellar ASX growth shares to buy
• Leading brokers name 3 ASX shares to sell today
• Why APN Industria, Centuria Industrial, Cochlear, & Perseus Mining are tumbling
• Which ASX 300 shares are the major movers at the end of the 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 Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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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The Sydney Airport (ASX: SYD) share price is dipping during late afternoon trade. This comes after Australia’s largest airport operator provided an update on the non-binding proposal from the Sydney Aviation Alliance (Consortium).

At the time of writing, Sydney Airport shares are travelling 0.84% lower to $8.30 apiece.

What did Sydney Airport announce?

In today’s statement, Sydney Airport advised that the due diligence period for the Sydney Aviation Alliance takeover bid has concluded.

This follows a revised conditional and non-binding proposal received on 13 September, offering $8.75 cash per stapled security. This represents a 9.4% premium to the Sydney Airport share price at the last closing price before the announcement on 10 September. It is also an increase on Sydney Aviation Alliance’s previous offers of $8.25 cash per share on 5 July and $8.45 cash per share on 16 August.

The Sydney Airport board stated that it’s continuing to negotiate the transaction documents to the relevant parties of the consortium. It is expected that this will be internally approved in the coming weeks. However, the board noted that this is no absolute guarantee.

If the consortium gives the green light, the Sydney Airport shareholders will need to vote in favour of the transaction. The board has previously put forward its recommendation saying the improved offer represents the best interests for Sydney Airport shareholders.

Once this is completed, Sydney Airport and the consortium will enter into a mutually acceptable scheme implementation deed. Although, this would be subject to several conditions, including court and regulatory approvals.

For now, Sydney Airport shareholders will need to wait until the company comes back with more news on the proposal.

Sydney Airport share price snapshot

Over the past 12 months, Sydney Airport shares were mostly tracking sideways until the takeover proposal announcement. Since then, the company’s shares have skyrocketed to near pre-COVID highs.

Currently, its shares are registering a 40% gain from this time last year, and hovering just below 30% for year-to-date.

Sydney Airport presides a market capitalisation of roughly $22.36 billion and has approximately 2.7 billion shares on its books.

The post Sydney Airport (ASX:SYD) share price slides on takeover update appeared first on The Motley Fool Australia.

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• Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid
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• Up 7%, the Flight Centre (ASX:FLT) share price is surging. Here’s why
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Owners of Woodside Petroleum Limited (ASX: WPL) shares might want to keep an eye on the upcoming COP26 climate change summit in Glasgow, as net-zero emissions could be disastrous for the company’s Scarborough Project.

That’s according to the International Energy Agency (IEA) which released its World Energy Outlook 2021 last week.

It found that unless the Scarborough Project could get its break-even price below US$5 per British thermal unit, it likely couldn’t profit in a world striving for net-zero emissions by 2050.

Let’s take a closer look at the body’s predictions for the world’s natural gas industry.

A quick refresher

The Scarborough Project is a natural gas resource located off the coast of Western Australia.

The project is a joint venture between Woodside and BHP Group Ltd (ASX: BHP). However, after the planned merger of Woodside and BHP’s petroleum division, the project will be operated by Woodside alone.

Recently, the Conservation Council of Western Australia found Scarborough will produce the same amount of greenhouse gas as 15 new coal-fired power stations.

The company is yet to make a final investment decision on the project.

What could net zero mean for Woodside shares?

The Scarborough Project and, by extension, Woodside Petroleum shares, could be in for a wild ride if global leaders agree to reach net-zero emissions by 2050, according to the IEA. Here’s what the body predicts the natural gas industry will look like if the globe reached net-zero emissions:

Until 2030, the world will see the price of natural gas drop considerably. Trade in the commodity will peak in the mid-2020s before falling to end the decade where it started it. The IEA stated:

Given the low prices of natural gas in the [net-zero emissions scenario], any LNG projects with a break-even price of more than US$5 per million British thermal units (MBtu) would be at risk of failing to recoup their investment costs.

Then, by 2050, less than 190 billion cubic metres of natural gas would be used for power generation globally. That’s 80% less than today’s levels. In fact, in a net-zero 2050, only 1% of electricity would be made using natural gas.

Further, more than 50% of the world’s natural gas would be used to produce low-carbon hydrogen, with another 15% used by industries.

Finally, only 60% of the world’s natural gas would be produced outside of the Middle East and Russia. At the same time, interregional trade in the commodity would drop to around 40% of current levels. The IEA notes:

Without any need for investment in new upstream projects, production in emerging producers in Africa and elsewhere is constrained, and large existing producers and resource holders increasingly dominate supply.

What if net zero targets aren’t met?

Investors might be wondering if the project and their Woodside shares would have a better chance without a strict net-zero target.

The IEA answers that query with 2 additional models. The first considers the scenario of global leaders sticking to their pledges and the second is based on nothing changing from current policies.

The outcome won’t be much better for natural gas projects if global powers stick to their current emission reduction pledges.

If they do, global demand for natural gas will likely have increased 5% by 2030, led by developing regions. However, by 2050, demand will be back to 2020 levels.

It’s a better story for liquid natural gas (LNG). The body predicts LNG would be used to replace other energy sources in Asia.

According to IEA, the best option for the natural gas industry is if nothing changes.

If global policies stay the same as those currently in place or being created, international demand for natural gas will have increased 15% by 2030. Growth in demand will then slow but won’t have peaked by 2050.

Woodside share price snapshot

At the time of writing, the Woodside share price is $25.13, 0.2% lower than its previous close.

That’s also 10% higher than it was at the start of 2021 and 36% higher than it was this time last year.

The post Own Woodside (ASX:WPL) shares? Here’s what the World Energy Outlook could signal appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Why did the Woodside (ASX:WPL) share price slide today?
• 5 things to watch on the ASX 200 on Thursday
• Could the Woodside (ASX:WPL) share price hit $27.50 by the end of 2021?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 late afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back the majority of its earlier gains and is trading just a fraction higher. At the time of writing, the benchmark index is up slightly to 7,367.4 points.

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

Audinate Group Ltd (ASX: AD8)

The Audinate share price is down 8% to $9.02. Investors have been selling the media networking solutions provider’s shares following the release of its first quarter update. For the three months, Audinate delivered a 46.1% increase in unaudited revenue to US$7.6 million. However, taking the gloss off the record quarter was management warning that component shortages are expected to impact its second half performance.

HomeCo Daily Needs REIT (ASX: HDN)

The HomeCo Daily Needs share price is down over 8% to $1.47. This morning HomeCo Daily Needs agreed to merge with Aventus Group (ASX: AVN) and Home Consortium Ltd (ASX: HMC). The agreement will see Aventus shareholders receive 2.2 HomeCo Daily Needs shares and either $0.285 cash or 0.038 Home Consortium shares for every Aventus share they own. This implies an offer price of $3.82, which represents a 15.3% premium to the Aventus share price at the end of last week.

Infomedia Limited (ASX: IFM)

The Infomedia share price has sunk 15% to $1.39. Investors have been selling the shares of the global provider of software as a service solutions to the automotive parts and service sector after it announced the surprise exit of its CEO, Jonathan Rubinsztein. According to the release, Mr Rubinsztein will leave Infomedia later this month to pursue another opportunity within the technology sector.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 3% to $12.99. This is despite the online furniture and homewares retailer providing a strong trading update at its annual general meeting. According to the release, Temple & Webster’s revenue for the period July 1 to 15 October increased 56% over the prior corresponding period.

The post Why Audinate, Home Co Daily Needs, Infomedia, and Temple & Webster are falling appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are leading the way on Monday?
• Infomedia (ASX:IFM) share price sinks 14% on shock resignation
• Aventus (ASX:AVN) share price shoots 9% higher on HomeCo merger plans
• Temple & Webster (ASX:TPW) share price races higher on AGM update
• Audinate (ASX:AD8) share price crashes 10% on Q1 update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AUDINATEGL FPO, Infomedia, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended AVENTUS RE UNIT, Infomedia, and Temple & Webster Group 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 Fortescue Metals Group Ltd (ASX: FMG) share price is stalling on Monday following fresh Chinese economic data and soft iron ore prices.

At the time of writing, the Fortescue share price is up 0.51% to $14.675.

Iron ore prices retreat amid weak demand

Iron ore spot prices retreated overnight last Friday, down 69 cents or 0.55% to US$125.22 a tonne.

According to Fastmarkets, seaborne iron ore prices fell amid lower traded volumes at Chinese ports.

In the futures market, China’s most active futures contracts for January 2022 delivered on the Dalian Commodity Exchange tanked on open this morning, sliding as much as 6% to ~684 yuan (US$106) a tonne.

Bouncing off morning lows, Chinese futures are currently down 1.2% to around 720 yuan (US$112) a tonne.

China GDP growth hits 1 year low

Another factor that might be weighing on the Fortescue share price is a major slowdown in China’s economic growth.

The world’s second-largest economy reported a 4.9% year-on-year increase in third-quarter GDP, the weakest pace since the third quarter of 2020.

This marked a major slowdown from the 7.9% growth in the second quarter and 18.3% in the first quarter.

The third quarter faced several headwinds including the Evergrande debt crisis and broader property slump, an energy crisis, supply bottlenecks, and surging raw material prices.

Perhaps more relevant for the Fortescue share price, factory output, investment in construction and other fixed assets all weakened.

Industrial production increased 3.1% in September but well below the 4.5% expected by Reuters.

China’s construction sector has been weighed down by tightening credit rules and weak consumer sentiment towards the overall property sector. According to Reuters, China’s September new construction starts fell for a sixth straight month, the longest consecutive decline since 2015.

Fixed asset investment growth came in at 7.3% compared to a year ago, but missed the 7.9% figure from its national bureau.

Fortescue share price lingers around $14

The Fortescue share price is down around 40% year-to-date, spending the past month drifting around the $14 level.

On one hand, iron ore prices have bounced strongly off of recent lows of US$90 a tonne.

However, a slowdown in the all-important Chinese economy and looming Evergrande debt concerns could also put the brakes on the Fortescue comeback story.

The post Why is the Fortescue (ASX:FMG) share price stalling on Monday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• How fast is green hydrogen growing and which ASX shares could benefit?
• Own Fortescue (ASX:FMG) shares? Here’s the latest on China’s steel demand
• Fortescue (ASX:FMG) share price rises amid Gigafactory plans with Plug Power
• Fortescue (ASX:FMG) share price up 3% against all odds

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

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The S&P/ASX 200 Index (ASX: XJO) is enjoying a solid start to the week’s trading session so far this Monday. At the time of writing, the ASX 200 is up 0.1% to 7,369 points.

So let’s dive deeper and check out the ASX 200 shares that are topping the trading volume charts so far today, according to investing.com.

The 3 most active ASX 200 shares by volume today

Beach Energy Ltd (ASX: BPT)

ASX 200 energy share Beach is our first company to check out today. Beach Energy has seen an impressive 11.86 million of its shares bought and sold so far this Monday. This elevated trading volume is likely the result of the strong buying pressure we have seen for this company so far today.

At the time of writing, Beach shares are up a healthy 2.21% to $1.48 a share. As my Fool colleague Kerry looked into this afternoon, this appears to be a response to rising crude oil prices, which are now trading at multi-year highs.

Pilbara Minerals Ltd (ASX: PLS)

Our second ASX 200 share today is no stranger to high trading volumes. Lithium producer Pilbara has seen a hefty 17.45 million of its shares find new owners so far this Monday. There are no major news or announcements out of Pilbara today as of yet, so we can probably put this high volume down to the outsized gains Pilbara is also savouring today.

This company is presently up 2.4% to $2.13 a share, outperforming the broader ASX 200 alongside Beach Energy. The Pilbara share price is now up more than 7% over just the past 5 trading days.

South32 Ltd (ASX: S32)

Our final and most traded ASX 200 share so far today is diversified miner South32. This old flame of BHP Group Ltd (ASX: BHP) has seen a whopping 32.03 million of its shares swap hands thus far on Monday. And the song remains the same. This move can likely be put down to the large share price movement South32 has benefited from today.

The miner is currently up a pleasing 4.45% to $3.99 a share. My Fool colleague Brooke delved deeper into today’s performance for South32 this morning, but we have likely found the reason behind today’s elevated trading volume with this big move upwards.

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

More reading

• Why is the WAM Capital (ASX:WAM) share price sliding 4% today?
• Why is the South32 (ASX:S32) share price lifting on Monday?
• ASX 200 energy shares open higher as oil prices double in past 12 months
• 2 gold ASX shares experts are loving right now
• ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update

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

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

Orocobre Limited (ASX: ORE)

According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted their price target on this lithium miner’s shares to $10.40. The broker believes recent weakness in the Orocobre share price due to profit taking could be a buying opportunity. Especially given how lithium prices have continued to rise. The Orocobre share price is trading at $9.05 on Monday afternoon.

Redbubble Ltd (ASX: RBL)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $6.50 price target on this ecommerce company’s shares. The broker notes that driving customer loyalty has become a core strategy for Redbubble. Morgan Stanley is pleased with this and believes that its successful execution could help the company achieve 20% to 30% per annum revenue growth over the medium term. The Redbubble share price is fetching $3.84 on Monday.

Transurban Group (ASX: TCL)

Analysts at Morgans have upgraded this toll road operator’s shares to an add rating with an improved price target of $14.82. According to the note, after adjusting its valuation approach, Morgans has unearthed an additional source of incremental value. In addition to this, it feels the current Transurban share price is an attractive entry point for investors following the completion of its retail entitlement offer. The Transurban share price is trading at $13.74 on Monday afternoon.

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

More reading

• These are the 10 most shorted ASX shares
• 2 ASX 200 dividend shares to buy now
• Top brokers name 3 ASX shares to buy next week
• Top broker tips Redbubble (ASX:RBL) share price to jump 22%
• Why ASX lithium shares are booming on Thursday

Motley Fool contributor James Mickleboro owns shares of Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Wesfarmers Ltd (ASX: WES) share price is having a month to forget.

At the time of writing, shares in the retail conglomerate are trading for $54.95 – up 0.33%. Over the month, however, it’s been less cheery for the company – down 3.48%. For context, despite how turbulent it may have felt, the S&P/ASX 200 Index (ASX: XJO) has actually increased 1.74% over the same time.

Let’s take a closer look at what’s going on.

What’s up with Wesfarmers?

The first major story that had a negative impact on the Wesfarmers share price was the news Sigma Healthcare Ltd (ASX: SIG) had also entered the fray to take over Australian Pharmaceutical Industries Ltd (ASX: API) with a mostly scrip bid for the retail pharmacist.

Sigma put in a bid with an implied value of $1.57 per share – or $773 million for the company. As Motley Fool previously reported, Sigma put a higher bid to API’s board than Wesfarmers, albeit a mostly scrip one.

Sigma’s proposal would see API’s shareholders walking away with 35 cents of cash and 2.05 Sigma shares per API share they held at the time of the proposed merger. This valuation is based on Sigma’s share price at the time the offer was made.

Since that time, Wesfarmers has acquired a nearly 20% stake in API, buying out the portion owned by Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) for $1.38 per share. It has also agreed to pay Sol Patts any additional funds owed to it should its proposed merger with API be successful.

The Wesfarmers share price rose on this strong indication it would be successful in buying API.

What else is affecting the Wesfarmers share price?

Lockdowns are coming to an end in Australia. Sydney left its 15 weeks of COVID restrictions last Monday. Melbourne will leave on Thursday and the ACT is slowly exiting its stay-at-home orders.

Lockdowns have historically been good news for the Wesfarmers share price. The thinking goes with everyone stuck at home and their consumption options limited, people will spend their money on what they can and that includes shopping (either online or in-person) at Bunnings, Kmart, or Officeworks – all Wesfarmers brands. Wesfarmers shares rocketed 11% during the latest delta outbreak.

With lockdowns coming to an end, investors may be seeing the time of supercharged revenues also coming to an end – and thus want to sell on a high.

This could partially explain the falling Wesfarmers share price. Of course, correlation does not equal causation.

Wesfarmers share price snapshot

Over the past 12 months, the Wesfarmers share price has increased 14.0%. Year-to-date, it is up 6.74%. Both of these figures are lower than the growth rate of the ASX 200.

Wesfarmers has a market capitalisation of about $62 billion.

The post Here’s why the Wesfarmers (ASX:WES) share price is down 4% in a month appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Marc Sidarous 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 Washington H. Soul Pattinson and Company Limited and 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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