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Here at the Motley Fool, we’ve been checking out how some of the ASX 200’s blue-chip shares have performed in the most recent quarter.

In Australia, we run on a July-June financial year. That means the first quarter of said financial year (1 July – 30 September) has just wrapped up. So today, we’re looking at the CSL Limited (ASX: CSL) share price, and how it performed over this period.

CSL is one of the largest shares in the S&P/ASX 200 Index (ASX: XJO). It was actually the largest share for a while last year, pipping Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). As it stands today, CSL is the ASX 200’s No. 2 share, recently overtaking BHP, which has been suffering due to falling iron ore prices.

CSL used to be known as one of the ASX’s top growth shares. Its share price exploded over 2017, 2018, and 2019, but has been struggling more recently in the shadow of the pandemic.

So how did CSL shares fare over this most recent quarter?

CSL outperforms ASX 200 in FY22 first quarter

CSL shares started on 1 July at a price of $285.19. They finished up at $293.40 on 30 September. That means the CSL share price appreciated by around 2.88% over the quarter. That’s a fair bit above what the ASX 200 managed — an increase of roughly 0.26%.

As it stands today, the CSL share price last traded at $290.46 as of Friday’s close (up 0.83%). The company is up 1.92% year to date in 2021.

However, it’s still down around 1.65% over the past 12 months, and close to 14% from the company’s all-time high, which it hit way back in February 2020. Even so, the company is still up by about 175% over the past 5 years.

Could CSL shares be a buy right now?

With the quarter CSL just had, and its distance from its all-time high, many an investor may be wondering if the company might be a buy today. Well, as my Fool colleague Tristan covered last week, there are a couple of brokers who think it might be.

Credit Suisse is one such broker. It currently rates CSL shares with a 12-month share price target of $315, albeit with a ‘neutral’ rating. That implies a potential upside of roughly 8% from here. Credit Suisse still reckons CSL can grow its profits, even if competitive threats are rising for the company.

At CSL’s last share price of $290.46, the company has a market capitalisation of $131.26 billion, a price-to-earnings (P/E) ratio of 40.64, and a dividend yield of 1.01%.

The post Here’s what happened to the CSL (ASX:CSL) share price in the FY22 first quarter appeared first on The Motley Fool Australia.

More reading

• Why this expert reckons the Woolworths (ASX:WOW) share price is on special
• These were the best performing ASX 200 shares last week
• Can the Wesfarmers (ASX:WES) share price reach $60 by Christmas?
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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. owns shares of and has recommended CSL Ltd. 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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If you’re a fan of growth shares like I am, then you may want to look closely at the three shares listed below.

Here’s why these could be growth shares to buy:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider. The Hipages platform connects consumers with over 34,000 trusted tradies (and growing) across Australia. In FY 2021, the company reported a 12% increase in job volumes to 1.53 million and a 22% increase in full year revenue to $55.8 million. This is still only a fraction of its total addressable market which is estimated to be $110 billion across the residential and commercial sectors.

Goldman Sachs is very bullish on its growth prospects. It currently has a buy rating and $4.35 price target on its shares.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX growth share to look at is PointsBet. It is a sports betting and iGaming provider with operations in the ANZ and US markets. Like Hipages, PointsBet was on form again in FY 2021. For the 12 months ended 30 June, it reported a 228% increase in full year turnover to $3,781.4 million. This was driven by a 117% increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321. More of the same is expected in FY 2022 thanks to the growing popularity of mobile sports betting, innovative products, and its continued US expansion.

Goldman Sachs is also very positive on PointsBet due to its massive opportunity in the US market. The broker has a buy rating and $14.75 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

A final growth share to consider is Temple & Webster. Australia’s leading online furniture and homewares retailer was on form again in FY 2021 and continued its meteoric growth. For the 12 months, the company reported a 62% year on year increase in customer numbers to 778,000. Combined with increased repeat purchases, this underpinned an 85% increase in revenue to $326.3 million. Positively, Temple & Webster still has a long runway for growth over the next decade. This is due to increasing online penetration rates and its leadership position online. The company estimates that in 2020 just 7% to 9% of category sales were made online. This compares to 25.3% in the US in 2020.

The team at Morgan Stanley are very positive on the company’s outlook. Its analysts currently have an overweight rating and $16.00 price target on its shares.

The post 3 fantastic ASX growth shares to buy appeared first on The Motley Fool Australia.

More reading

• Why is the Hipages (ASX:HPG) share price leaping 6% on Wednesday?
• 2 leading ASX e-commerce shares that could be buys in October 2021
• 3 rapidly growing ASX shares to buy in October
• Top ASX shares to buy in October 2021
• These ASX shares could be top 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 Hipages Group Holdings Ltd., Pointsbet Holdings Ltd, and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Hipages Group Holdings Ltd., Pointsbet Holdings Ltd, 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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This weekend could be a good time to research some ASX shares that are currently unloved by the market.

Share prices are always changing and this can open up opportunities for investors to find value ideas.

However, finding companies with longer-term growth plans could make these ASX shares potential opportunities:

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the largest iron ore miners in the world, but it’s quite a bit smaller than it used to be. The Fortescue share price has fallen by around 46% since the peak in late July 2021.

However, commodities are often cyclical and a lower price of both the resource (iron ore) and the company could make it something to consider.

Indeed, the brokers at Macquarie Group Ltd (ASX: MQG) currently (and recently) rated Fortescue as a buy with a price target of $21. That suggests a potential upside of almost 50% over the next 12 months, if the analysts end up being right.

Macquarie thinks that lower capex will help the ASX share even if iron ore prices are depressed. It also thinks that Fortescue Future Industries (FFI) could be a helpful factor for Fortescue. FFI is the division that is looking to enable Fortescue to become a green miner and it also has longer-term goals of helping other industries become greener as well.

On Macquarie’s numbers, Fortescue is valued at 8x FY23’s estimated earnings with a projected FY23 grossed-up dividend yield of 14%.

Accent Group Ltd (ASX: AX1)

Accent is a market leader when it comes to shoe retailing in Australia and New Zealand.

It sells through a number of different brands in the domestic market including The Athlete’s Foot, the Glue Store, Pivot, CAT, Platypus, Skechers, VANS, Trybe and Timberland.

In FY21, the company demonstrated operating leverage across the different profit lines of the business. Whilst total sales increased 19.9% to $1.14 billion, earnings before interest and tax (EBIT) grew 32.1% to $124.9 million and net profit after tax (NPAT) rose 38.6% to $76.9 million.

The ASX share is rapidly expanding its online sales in this era of elevated e-commerce. Total digital sales increased 48.5% to $209.9 million, representing 20.9% of retail sales.

A growing store network is helping expand its potential reach to customers. In FY21 it added 90 new stores, whilst closing seven where rent outcomes could not be achieved. Management said that new stores continue to perform strongly on more favourable rents than the existing portfolio.

Current COVID-19 restrictions are impacting the company’s sales, but it has plans to open more stores and grow online sales. Digital sales were up 66.7% in the first seven weeks of FY22, though total sales were down 16%.

Over the long-term, it wants to grow its earnings per share (EPS) at a compound rate of at least 10%.

According to Commsec, the Accent share price is valued at 14x FY23’s estimated earnings with a grossed-up dividend yield of 7.3%.

The post 2 ASX shares that could be worth researching this weekend appeared first on The Motley Fool Australia.

More reading

• Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today
• Is the Fortescue (ASX:FMG) dividend yield really 25%?
• US warns Evergrande crisis could affect ‘entire world’
• CBA (ASX:CBA) warns iron ore price will fall by 27% in the next year
• Analysts name 2 ASX dividend shares to buy

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group 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 owns shares of and has recommended Macquarie Group Limited. 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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Could the Westpac Banking Corp (ASX: WBC) share price be a buy for its expected grossed-up dividend yield in FY22?

Banks have long been looked at for their dividends because of the tendency to have a reasonably high dividend payout ratio and a fairly low price/earnings ratio. That combines into a higher-than-average dividend yield.

Each analyst has a different expectation for what the bank is going to do in FY22.

When looking at the projection on Commsec, the numbers suggest that Westpac is going to pay a dividend of $1.25 per share. That translates to a grossed-up dividend yield of almost 7%.

Commsec’s forecast also suggest that the Westpac share price is valued at under 14x FY22’s estimated earnings.

How has Westpac been performing recently?

In terms of the actual performance of the business, it’s going through a recovery.

Third quarter

In the quarterly update for the third quarter of FY21, it said that its common equity tier 1 (CET1) capital ratio was 12%. Risk weighted asses increased by $8.5 billion, or 2%, over the third quarter, with this being mostly higher credit RWA. Its Australian mortgages and Australia business lending grew at the same speed as the overall loan system.

Westpac said that due to excess capital and franking credits, the board will consider a return of capital, with an update expected at its FY21 result.

Looking at the loan book, the mortgage 90+ day delinquencies were 1.11% in Australia (down 9 basis points) and 0.37% in New Zealand (up 4 basis points).

Margins in the second half of FY21 are expected to be lower than the first half of FY21. FY21 expenses are expected to be higher than FY20, excluding notable items.

The profit and operating performance of the bank can have an impact on the Westpac share price.

FY21 half-year result

Going back to the FY21 half year result, cash earnings of $3.54 billion were up 119% compared to the second half of FY20. Excluding ‘notable items’, cash earnings were up 35% to $3.8 billion. The net interest margin (NIM) was higher by 6 basis points to 2.09%. The statutory net profit was up 213% to $3.44 billion.

One key announcement from Westpac is that it has a three-year cost plan to reduce the cost base by $8 billion by FY24.

The bank is also working on an integrated plan to address financial and non-financial risk. It has increased its resources in the risk and financial crime teams.

Westpac is also going through the sale of a number of its non-core businesses to simplify the overall structure and improve the balance sheet.

Is the Westpac share price a buy?

Commsec doesn’t offer buy (or sell ratings), but brokers do.

Let’s look at a couple of those.

Macquarie Group Ltd (ASX: MQG) has a neutral rating on the bank, with a price target of $26.50. However, Morgan Stanley believes that Westpac is a buy with a price target of $29.20 on the business.

Both Morgan Stanley and Macquarie have also estimated that Westpac is going to pay an annual dividend of $1.25 per share in FY22.

Macquarie thinks that the big four ASX bank could decide to do a $4.5 billion share buy-back as a way of returning capital to shareholders.

The post Is the Westpac (ASX:WBC) share price a buy for its 7% dividend yield? appeared first on The Motley Fool Australia.

More reading

• Why the Macquarie (ASX:MQG) share price hit its all-time high on Friday
• Westpac and other ASX 200 banks face renewed shareholder pressure over climate policies
• How did the Westpac (ASX:WBC) share price perform in the last quarter?
• 2 buy-rated ASX dividend shares with 5% yields
• ASX 200 bank shares fall flat amid flurry of new regulations

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 Woolworths Group Ltd (ASX: WOW) share price will be closely monitored this month after one fund manager picked it as a defensive star in turbulent times.

The supermarket giant’s stock price is already 17.8% up for the year, and a whopping 66% over the past 3 years.

But with the S&P/ASX 200 Index (ASX: XJO) taking investors on a stomach-churning rollercoaster of volatility the past couple of months, reliable and steady assets are looking more attractive.

Pengana Australian Equities Fund analyst Mark Christensen told a webinar this week his fund is now positioned defensively.

“Woolworths is obviously a very defensive stock.”

Woolworths has the nirvana of pricing power on both sides

Shares in Woolworths are compelling because the retailer has the ability to set its own price, which is important in a climate of rising inflation and interest rates.

But there are many companies that have pricing power, you say.

The difference with Woolworths, according to Christensen, is that its market position is so dominant it has pricing power on both sides of its supply chain.

“It has the pricing power to push back on inflation impacts from its suppliers, and pass on any pricing [rises] it feels it needs to its customers,” said Christensen.

“If you’re able to increase the value of each box you sell, but sell the same number of boxes, then that’s a good equation for your bottom line.”

Woolworths shares are also currently paying out a 2.73% dividend yield, which is also a tidy benefit during volatile times.

Like its competitors, Woolworths has had to battle staff shortages in Victoria and NSW in recent weeks due to COVID-19 isolation requirements. It even had to close some stores temporarily.

But with NSW hitting the 70% fully vaccinated milestone this week and reopening the economy on Monday, the problem is expected to be short-lived.

Victoria has more than 55% of its adult population fully vaccinated against the coronavirus, and will also open up in stages when that figure hits 70% and 80%.

The post Why this expert reckons the Woolworths (ASX:WOW) share price is on special appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Can the Wesfarmers (ASX:WES) share price reach $60 by Christmas?
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in

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

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If you own shares in BHP Group Ltd (ASX: BHP) you won’t be invested in hydrogen-powered steelmaking any time soon, according to the company’s boss.

BHP’s CEO Mike Henry spoke at an industry conference on Thursday. He reportedly said he didn’t believe BHP will be using hydrogen to decarbonise the company’s activities any time soon.

Additionally, Henry purportedly thinks hydrogen-based steelmaking won’t be common for another 2 to 3 decades.

The BHP share price finished the week just been trading at $37.73, 2.3% higher than it started it.

Let’s take a closer look at the company’s CEO’s view on the future of hydrogen.

Has BHP turned its back on hydrogen?

Those invested in BHP shares shouldn’t anticipate the company embracing a hydrogen-powered future – at least not for a little while.

According to reporting by S&P Global Platts, BHP’s CEO Mark Henry told the Financial Times’ 2021 Mining Summit the company won’t be working towards using hydrogen in its production any time soon.

He also reportedly said widespread use of hydrogen as a fuel source in the steelmaking industry is decades away.

Henry’s view of hydrogen is the opposite of that of some of BHP’s peers.

Fellow iron ore giant, Fortescue Metals Group Limited (ASX: FMG) is working toward a green hydrogen-powered future.

Green hydrogen differs from regular hydrogen as its made using renewable energy.

It’s a key part of Fortescue’s Fortescue Future Industries initiative. The company recently designed and constructed a hydrogen powered truck and drill rig, and believes hydrogen is a key energy source in the decarbonisation of heavy industry.

Henry reportedly also believes in the potential to use hydrogen as a fuel source for direct reduced iron (DRI).

Though, he doesn’t think hydrogen will be used widely in the industry for another 20 to 30 years. S&P Global Platts quoted Henry as saying:

Hydrogen will have its day, but it’s going will take some time to get there given current economics… and the massive quantity of capital needed to develop green DRI.

He also reportedly pointed to the steel industries of China and India, saying the capital sunk into coal-fired blast furnaces would discourage the uptake of hydrogen-powered alternatives.   

The company is still working towards decarbonisation, but it’s doing so using other, more technologically focused methods.

The post Own BHP (ASX:BHP) shares? Here’s why the miner won’t be jumping onboard the hydrogen train appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today
• Why do Pilbara Minerals (ASX:PLS) shares keep topping the volume charts?
• US warns Evergrande crisis could affect ‘entire world’
• ASX 200 (ASX:XJO) midday update: EML crashes, mining shares rise

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

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The Telstra Corporation Ltd (ASX: TLS) share price has been on fire in 2021.

Since the start of the year, the telco giant’s shares have gained a remarkable 29%.

This means the Telstra share price is outperforming the ASX 200 by some distance. In fact, it is even outperforming the Zip Co Ltd (ASX: Z1P) share price!

Can the Telstra share price hit $4.50 by the end of the year?

The good news for shareholders is that one leading broker believes the Telstra share price can rise even further.

According to a recent note out of Morgans, its analysts have put an add rating and $4.44 price target on the company’s shares.

Based on the current Telstra share price of $3.89, this implies potential upside of 14% over the next 12 months.

And with Morgans expecting another fully franked dividend of 16 cents per share in FY 2022, the potential return increases to over 18% including this.

All in all, this broker appears to believe there’s a reasonable chance the Telstra share price could be nearing $4.50 by the end of the year.

Why is the broker bullish?

Morgans came away from Telstra’s recent T25 event feeling very positive on the company’s future.

It commented: “With T22 now upon us, Telstra’s investor day focused on aspirations for T25 (from FY23 to FY25), and they didn’t disappoint. The crux of the investor day commentary is that the worst is now behind TLS. Earnings bottomed in FY20. Underlying earnings, and maybe even the dividend, are expected to grow at a reasonable pace over the next four years.”

In addition, the broker highlights that industry trends are positive and feels the sum of the parts (SOTP) for the company is worth more than the Telstra share price implies.

It concluded: “Industry dynamics have turned positive (NBN and mobile prices are increasing after 5 years of declines; TLS’s targets imply they continue to rise); The SOTP for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear); and Underlying earnings returned to growth in 2H21 and should continue growing out to FY25.”

The post Could the Telstra (ASX:TLS) share price reach $4.50 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• Why these experts say the Telstra (ASX:TLS) share price is tempting right now
• 3 ASX shares protected from rising inflation and interest rates
• Here’s what happened to the Telstra (ASX:TLS) share price in September
• When was the worst ever day on the Telstra (ASX:TLS) share price chart?
• Why this broker sees 30% upside for the AGL (ASX:AGL) share price

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra 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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It certainly was a very positive week for the S&P/ASX 200 Index (ASX: XJO). The benchmark index jumped 1.9% to end the period at 7,320.1 points.

While a good number of shares rose with the market, some climbed more than most. Here’s why these were the best performers on the ASX 200 last week:

Perenti Global Ltd (ASX: PRN)

The Perenti share price was the best performer on the ASX 200 with a 15.2% gain over the five days. A good portion of this came on the final day of the week following the mining services company’s annual general meeting. At the meeting management spoke positively about the future, noting that investments have been made to support its sustainable growth.

Westgold Resources Ltd (ASX: WGX)

The Westgold Resources share price wasn’t too far behind with a gain of 11.6%. Last week the gold miner revealed that it has received significant incoming positive engagement from shareholders of Gascoyne Resources Limited (ASX: GCY) regarding its takeover approach from a week earlier. As a result, it is planning to push ahead with an offer. It has also encouraged Gascoyne shareholders to “demand that its Board act in the best interests of Gascoyne shareholders and be provided the opportunity to consider and accept the Westgold Offer.”

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price was a strong performer and jumped 10% last week. The catalyst for this was news that the quick service restaurant operator has signed an agreement with KFC Europe. According to the release, Collins Foods will become KFC’s corporate franchisee in the Netherlands. This means Collins Foods has the rights to develop, manage, and operate the KFC business in the country. The agreement provides a framework for the development of up to 130 new KFC restaurants over a 10-year period.

NRW Holdings Limited (ASX: NWH)

The NRW share price was on form and charged 10% higher over the five days. This was despite there being no news out of the mining services company last week. Though, it is worth noting that last month the team at Macquarie retained their outperform rating and $2.20 price target on its shares. This is notably higher than where the NRW share price trades currently.

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

More reading

• Can the Wesfarmers (ASX:WES) share price reach $60 by Christmas?
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
• These 3 ASX 200 shares are the most popular by trading volume today

Motley Fool contributor James Mickleboro owns shares of Collins Foods 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 recommended Collins Foods 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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Could it be possible for the Wesfarmers Ltd (ASX: WES) share price to rise to $60 by Christmas? That would suggest a 9% increase of Wesfarmers shares on the next two and a half months if it were to happen.

The Wesfarmers share price has actually already been as high as $66 this year. The company has actually dropped by around 17% from there.

Since 20 August 2021, the S&P/ASX 200 Index (ASX: XJO) has fallen by around 2%. That shows that Wesfarmers shares have materially underperformed the ASX 200 in that time.

What’s happening for the company at the moment?

Takeover battle

Wesfarmers is currently trying to buy Australian Pharmaceutical Industries Ltd (ASX: API), which owns a few different businesses including Priceline Pharmacy.

The retail conglomerate has offered $1.55 per share to buy the whole business. Wesfarmers is currently progressing with its confirmatory due diligence investigations for its proposed purchase.

A couple of weeks ago, Sigma Healthcare Ltd (ASX: SIG) also offered to acquire API. Wesfarmers believes that its offer is better than Sigma’s.

The company announced this week that it was buying 95.1 million shares, being 19.3% of API, from Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). With this stake, it’s going to vote against any proposal by Sigma that is put to shareholders.

Wesfarmers managing director Rob Scott said the Wesfarmers proposal would deliver an attractive premium and certain cash return to API shareholders:

Wesfarmers continues to see opportunities to invest in and strengthen the competitive position of API and its community pharmacy partners. Exercising our option to acquire 19.3% of API reflects the group’s commitment to the transaction and the continued progress of the Wesfarmers proposal.

Could the Wesfarmers share price hit $60?

The broker UBS certainly thinks so. Indeed the price target is actually $62. However, that is where UBS thinks Wesfarmers could be in 12 months from now – not necessarily by Christmas.

UBS currently rates Wesfarmers as ‘neutral’, though it thinks the API acquisition could be good if it goes ahead and add to profit.

Wesfarmers has said that API could form the start of a healthcare division and a platform from which to invest and develop capabilities in the growing health, wellbeing and beauty sector.

At the current Wesfarmers share price, it’s valued at 27x FY22’s estimated earnings by UBS.

How is trading going?

When the company announced its FY21 result, it gave a trading update for its different businesses for the first couple of months of FY22.

Bunnings, by the far the biggest profit generator, had seen sales decline 4.7% with solid growth from commercial customers, offset by a decline in consumer sales as the business cycled elevated demand in the prior period. Compared to two years ago, sales were up 24.4%.

Combined Kmart and Target sales were down 14.3%, reflecting the significant impact of COVID-19 restrictions such as store closures. In the middle of August, almost half of its stores were closed across Australia and New Zealand.

Catch gross transaction value was down 8.5% year on year, though up 112.5% compared to two years ago.

Finally, Officeworks sales were down 1.5% year on year, though it was up 31.1% over a two-year period.

The post Can the Wesfarmers (ASX:WES) share price reach $60 by Christmas? 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
• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
• These 3 ASX 200 shares are the most popular by trading volume today
• Why do Pilbara Minerals (ASX:PLS) shares keep topping the volume charts?

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company 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 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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The S&P/ASX 200 Index (ASX: XJO) was on form and recorded its first weekly gain in over a month. The benchmark index rose 1.9% to end the period at 7,320.1 points.

Unfortunately, not all shares were able to follow the market higher. Here’s why these were the worst performers on the ASX 200 last week:

EML Payments Ltd (ASX: EML)

The EML Payments share price was the worst performer on the ASX 200 last week with a 15.7% decline. The catalyst for this was the release of an update on regulatory action by the Central Bank of Ireland (CBI). The CBI revealed that it is planning to take action against EML’s PFS Card Services (Ireland) business. While no financial details have been provided by EML, it warned that the potential directions “could materially impact the European operations of the Prepaid Financial Services (PFS) business.”

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price was the next worst performer with a 6.3% decline over the five days. This was despite there being no news out of the infection prevention company. This latest decline means the Nanosonics share price has now lost almost a third of its value in 2021.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price wasn’t far behind with a decline of 5.9%. This is despite the company announcing the launch of its new Evora Full sleep apnoea mask. A broker note out of UBS may have offset this news. Its analysts were pleased with the launch of a new mask, which is in line with current industry trends. However, UBS continues to believe its shares are overvalued at the current level and retained its sell rating and NZ$22.65 (A$21.50) price target.

Mesoblast limited (ASX: MSB)

The Mesoblast share price was out of form and dropped 5.8% last week. This means the biotechnology company’s shares have now lost 54% of their value since this time last year. While there was no news out of Mesoblast last week, concerns over its precarious balance sheet have been weighing on its shares this year. Unless it has significant trial success, there are fears the company will have to raise funds yet again.

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

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended EML Payments and Nanosonics 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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