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The Domino’s Pizza Enterprises Ltd. (ASX: DMP) has stepped into the green during Monday’s session.

Domino’s shares have been on an extended run into the green over the last month, and at market close are up 0.79%, at $157.95.

As such the Domino’s Pizza share price reached another all-time high today, hitting an intraday of $158.43.

What tailwinds are behind the Domino’s Pizza share price?

The Domino’s Pizza share price has been on the move ever since the company reported its FY21 earnings back in August.

In its report, the company achieved record results, growing sales around 15% year on year (YoY) to $3.7 billion. The bolus of this growth was underscored by a 21.5% YoY increase in online sales.

This matched the wider trend in online food retail, which saw a massive uptick secondary to the Covid-19 induced lockdowns in Australia.

As a result, the company recognised net profit after tax (NPAT) of $188.2 million, a 29% increase from the year prior.

Due to these strengths, management increased the dividend payout ratio from 70% to 80% over the year.

The company increased its final dividend to 85.1 cents per share, meaning shareholders enjoyed a total FY21 dividend of $1.74 cents per share. This is a 45% increase from FY20.

Domino’s also achieved a great deal of fundamental momentum across the year. It opened 285 new stores for example, with 126 new stores opened in Japan alone.

Management also managed to pay down $118.7 million of the existing debt load, which free’s up additional capital and future cash flows for the company.

With respect to guidance, management estimates a “record year” for store expansion, and has already achieved network sales growth of almost 8% in FY22.

The Domino’s Pizza share price has gained 24% since its FY21 earnings, and there has been no other market sensitive information for the company over this time.

Therefore, it stands to reason that investors are buying Domino’s shares on the back of this fundamental momentum, and the company’s expected FY22 earnings.

Domino’s Pizza share price snapshot

The Domino’s Pizza share price has gained 81% this year to date, extending the gain over the last 12 months to 91%.

These results have far outpaced the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

The post Another day, another Dominos (ASX:DMP) share price all-time high appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares hitting fresh all-time highs on Monday
• How to turn $20,000 into $475,000 in 10 years with ASX shares
• 3 quality ASX growth shares analysts rate as buys
• 3 ASX 200 shares hit new all-time highs this earnings season
• 3 tempting ASX shares that rocketed after their results

The author Zach Bristow has no positions 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 Dominos Pizza Enterprises 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 Kuniko Limited (ASX: KNI) share price has sunk well into the red on Monday’s session.

At the market close, Kuniko shares were changing hands at $2.29 apiece, a 14.55% drop from the open this morning.

Let’s investigate further.

Quick recap on Kuniko

Kuniko is a mineral exploration company that has interests in the development of non-lithium battery metals.

The company was formed by a spinoff from Vulcan Energy Resources Ltd (ASX: VUL) at the end of July, in a heavily oversubscribed initial public offering (IPO).

Located in Norway, Kuniko targets cobalt, nickel and copper prospects — three battery metals used particularly in electric vehicles.

At the time of writing, the company has a market capitalisation of $142.5 million.

What’s up with the Kuniko share price lately?

There is no market-sensitive information that relates to the company today. However, Kuniko shares have been on a wild ride since floating on the ASX back in July.

Arguably, the most interesting observation in the company’s journey since listing has been the volatility in its share price. Let’s dive into this a bit deeper to fully understand.

Firstly, the Kuniko share price zoomed from 76 cents on 25 August to close at $2.17 the day after. That’s a 186% increase on the day.

However, at one point during the day, Kuniko shares were exchanging hands at a high of $3.60, and a low of 80 cents. Taking the spread between these two prices, we see it is a 375% difference!

What’s more is that this exchange occurred on a tremendous volume of almost 36 million shares, which is about 90% of Kuniko’s fully diluted number of shares outstanding.

In the week following, the Kuniko share price continued its ascent northwards, with a similar display of volatility across each day.

After the company announced its new CEO on 1 September, the Kuniko share price soared 19% higher on the day to close at $3.23.

It closed at $2.94 the day after, a 9% decrease. However, before it dropped to that level, it traded in an intraday range of $2.76 to $3.38 – a 22.5% spread in prices during that session.

Now almost a week later, the Kuniko share price is back down by approximately 18%.

Foolish takeaway

Kuniko shares are displaying a great deal of volatility since listing back in July.

This volatility has caused a wide range in which the Kuniko share price has traded. Volatility is not necessarily a driver of share price changes, but is certainly a result of underlying market forces that do cause these short-term fluctuations.

The post The Kuniko (ASX:KNI) share price is on a wild ride, sliding 14% today appeared first on The Motley Fool Australia.

More reading

• Kuniko (ASX:KNI) share price soars 15% amid new CEO’s unveiling
• What’s going on with the Kuniko (ASX:KNI) share price?
• Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today
• Why the Kuniko (ASX:KNI) share price is rocketing 96% higher today
• Kuniko (ASX:KNI) share price jumps 500% on ASX debut

The author Zach Bristow has no positions 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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Today, the S&P/ASX 200 Index (ASX: XJO) inched out a small gain. The benchmark index closed 0.07% higher to 7,528.5 points. It was a mixed day on the market to start the week. For the most part, tech shares and consumer discretionary performed well. However, the Aussie index was heavily impacted by a poor showing by miners and energy shares.

However, the question is: which shares from the top 200 delivered the most green on the ASX today? Here are the ten stocks that delivered the biggest gains while the market fell:

Top 10 ASX 200 shares countdown today

Looking at the top 200 listed companies, IDP Education Ltd (ASX: IEL) was the biggest gainer today. Shares in the education services company rallied 4.54% despite no news out. Find out more about IDP Education here.

The next best performing ASX share out of the top 200 today was Evolution Mining Ltd (ASX: EVN). The mining company’s shares managed to buck the broader trend, climbing 3.97% to $4.055. Uncover the latest Evolution Mining information here.

Today’s top 10 biggest gains were made in these ASX 200 shares:

ASX-listed company	Share price	Price change
IDP Education Ltd (ASX: IEL)	$32.93	4.54%
Evolution Mining Ltd (ASX: EVN)	$4.055	3.97%
Alumina Ltd (ASX: AWC)	$2.055	3.01%
ZIP Co Ltd (ASX: Z1P)	$6.97	2.80%
Crown Resorts Ltd (ASX: CWN)	$9.63	2.34%
Carsales.com Ltd (ASX: CAR)	$25.97	2.33%
Newcrest Mining Ltd (ASX: NCM)	$25.14	2.28%
TPG Telecom Ltd (ASX: TPG)	$6.59	2.17%
South32 Ltd (ASX: S32)	$3.35	2.13%
Ansell Ltd (ASX: ANN)	$37.495	2.03%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares on Monday appeared first on The Motley Fool Australia.

More reading

• 3 top ASX growth shares for investors in September
• 3 ASX 200 shares hitting fresh all-time highs on Monday
• Why the Evolution Mining (ASX:EVN) share price is leaping higher today
• ASX 200 midday update: Fortescue & Pro Medicus sink, gold miners rise
• Nuix (ASX:NXL) faces yet another indignity

Motley Fool contributor Mitchell Lawler 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 Idp Education Pty Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Ansell Ltd., TPG Telecom Limited, and carsales.com 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 Rio Tinto Ltd (ASX: RIO) share price finished a glowing a shade of red on Monday.

At market close, shares in the multinational mining company ended the day 0.84% down to $110.44.

Military coup weighs on West African mining potential

Investors in mining companies such as Rio Tinto were treading carefully today as reports flow in of a military coup in Guinea. Reportedly, a unit of the West African country’s military has overthrown the government.

Guinea is already one of Australia’s largest suppliers of bauxite, which is an unrefined form of aluminium. Consequently, this latest political instability could impact mining companies that operate in the area. Additionally, the development has cast a shadow on earlier optimism of Guinea becoming a major iron ore producer.

Following the boom in commodity markets, some investors have had high hopes for the Simandou mine in Guinea. The uncertainty was reflected in the weaker Rio Tinto share price before market close.

The site is believed to be the largest iron ore deposit of its kind, containing an estimated 10 billion tonnes of steelmaking ore.

In August, S&P Global reported that the deposit had been won by a Chinese-Singaporean-Guinean consortium. This consortium had been eyeing 2025 as the year to commission different blocks of the site, with Rio Tinto being involved through 2 mining leases.  

KPMG Geopolitics director Merriden Varral commented on the instability in the West African region, stating:

The issues driving terrorist activity in that region of the world are not set to be resolved in the immediate future, particularly as COVID-19 exacerbates existing inequalities and undermines poverty reduction.

An urgent meeting has been called by the African Union’s Peace and Security Council following the takeover.

Commodity pressures on the Rio Tinto share price

A steep and sudden fall in iron ore prices has weighed on many ASX-listed miners in the past month. The Rio Tinto share price is no exception, falling approximately 15% over that period.

Furthermore, this is not the only geopolitical uprising that the company has had to deal with in recent months. Rio Tinto has only recently resumed operations at Richards Bay Minerals in South Africa after widespread unrest across the region. This stemmed from the imprisonment of former President Jacob Zuma for contempt of court.

Lastly, the weakness in ASX-listed mining companies extends beyond the Rio Tinto share price on Monday. Fortescue Metals Group Ltd (ASX: FMG), BHP Group Ltd (ASX: BHP) finished the day down 11.08% and 0.52% respectively.

The post Rio Tinto (ASX:RIO) share price stumbles on geopolitical instability appeared first on The Motley Fool Australia.

More reading

• The Rio Tinto (ASX:RIO) share price has dropped 17% in one month. Is it a buy?
• Why the Rio Tinto (ASX:RIO) share price is down 17% in a month
• These were the worst performing ASX 200 shares in August
• ASX 200 miners beware as UBS warns iron ore will sink under US$100 in 2022
• August hasn’t been a great month for the Rio Tinto (ASX:RIO) share price

Motley Fool contributor Mitchell Lawler 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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Are you on the lookout for growth shares to buy? Then you may want to look at the ones listed below.

Here’s why analysts rate these three ASX growth shares highly:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. This leading appliance manufacturer has been tipped to continue its strong sales and profit growth over the coming years. This is thanks to strong demand, favourable industry tailwinds, international expansion, and its ongoing R&D investment. The latter is ensuring that the company has a portfolio of products meeting the needs of consumers across the world.

UBS is very positive on the company. It is forecasting double-digit sales growth through to at least FY 2023. In light of this, the broker has a buy rating and $35.70 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. It has been tipped to bounce back strongly following the pandemic. Particularly given its increasingly popular software offering, strengthening market position, and a key acquisition in India.

Goldman Sachs remains very positive on the company’s prospects. It recently put a buy rating and $34.00 price target on its shares. The broker is forecasting a compound annual growth rate (CAGR) of a 69% for its earnings over the next three years.

Life360 Inc (ASX: 360)

A final ASX growth share for investors to look at is Life360. It is the growing technology company behind the popular Life360 mobile app. This market leading app for families offers features such as communications, driver safety, and location sharing. At the last count there were over 32 million users globally, up 28% year on year.

Life360 has also recently expanded into the wearables market via the acquisition of Jiobit. This increases its total addressable market and opens up cross selling opportunities.

Bell Potter believes the company is well-placed for growth. It currently has a buy rating and $10.75  price target on Life360’s shares.

The post 3 top ASX growth shares for investors in September appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares hitting fresh all-time highs on Monday
• 2 excellent ASX 200 shares named as buys for September
• 3 excellent ASX growth shares for September
• Why these ASX shares just hit 52-week highs or better
• Top brokers name 3 ASX shares to buy next 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 Idp Education Pty Ltd and Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Afterpay Ltd (ASX: APT) share price is in the green today despite news another ASX-listed bank is launching its own buy now, pay later service.

Afterpay is facing yet another competitor after Suncorp Group Ltd (ASX: SUN) announced it is breaking into the BNPL sphere.

Right now, the Afterpay share price is $131.97, 0.96% higher than its previous close.

Let’s take a look at the news of Afterpay’s latest rival.  

Afterpay share price up despite new competition

The Afterpay share price is performing well today despite the news Suncorp will be launching a BNPL service.

Suncorp announced its interest-free BNPL offering, PayLater, today.

PayLater will be accepted anywhere shoppers can use Visa, giving consumers the option to use the BNPL service on purchases from more than 70 million merchants.

PayLater will follow Afterpay’s tried and tested formula of splitting a purchase into 4 instalments.

Additionally, Suncorp will be providing PayLater users with a yellow Suncorp bank card. By using the yellow card they can access the BNPL service in store and online.

Perhaps protecting the Afterpay share price today is the fact that to use PayLater one must be a customer of Suncorp Bank.

Further, unlike Afterpay, PayLater requires customers to pass a credit check.

Suncorp Group CEO Clive van Horen commented that PayLater removes the need to download separate apps. He also seemingly noted it will charge merchants less – or no – fees.

PayLater will charge users a $10 fee if they miss a payment by more than 2 days. The service is capped at $1,000 worth of purchases and has a $50 minimum spend.

For comparison, Afterpay charges users a $10 fee for missed payments and a $7 fee if the missed payment isn’t made after 7 days. However, it has no minimum spend. Additionally, the amount a user can purchase through Afterpay increases if they use the BNPL service often and responsibly.

All eyes might be on the Afterpay share price when Suncorp launches PayLater in November.

The post Afterpay (ASX:APT) share price edges higher amid increasingly crowded BNPL space appeared first on The Motley Fool Australia.

More reading

• Here’s a look at how ASX WAAAX shares compare on growth
• Here’s why the Afterpay (ASX:APT) share price is up 42% in the last 3 months
• Here’s why the Afterpay (ASX:APT) share price is sliding on Friday
• How has the Square share price performed since announcing the Afterpay deal?
• A2 Milk and Zip were among the most traded ASX shares last week

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. owns shares of and has recommended AFTERPAY T FPO and Visa. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Eastern Iron Ltd (ASX: EFE) share price is entering the stratosphere on Monday following a positive company announcement.

At the time of writing, the iron ore exploration company’s shares are up an astonishing 107.69% to 2.7 cents. This pales in comparison to the All Ordinaries Index (ASX: XAO) which is down 0.37% to 7,797 points.

What did Eastern Iron announce?

Investors are driving up the Eastern Iron share price after the company advised it has executed a Memorandum of Understanding (MOU).

The non-binding MOU was signed with Ya Hua International Investment and Development Co. Ltd, a wholly-owned subsidiary of Sichuan Yahua Industrial Group Co. Ltd (Yahua Group).

Eastern Iron and Yahua Group will form a strategic partnership for the acquisition and development of lithium projects. This includes working together to bring online the Trigg Hill Lithium Tantalum Project located in East Pilbara, Western Australia.

The long-term goal is to establish the supply of spodumene concentrates in Australia and other countries, except China.

Yahua will be granted the first right of refusal for product offtake from any joint venture projects including the Trigg Hill Project.

More on Yahua Group

With a market capitalisation of roughly RMB 36.3 billion (A$7.7 billion), the Yahua Group is one of China’s major lithium hydroxide and lithium carbonate producers. The conglomerate engages in the manufacture and sales of civil explosives and lithium salt products.

Yahua Group’s existing operations comprise a 43,000 tonne per annum refinery for lithium carbonate, lithium hydroxide and other lithium products.

Yahua is a major shareholder of Core Lithium Ltd (ASX: CXO) and a major offtake customer of Orocobre Ltd (ASX: ORE).

About the Eastern Iron share price

Over the last 12 months, Eastern Iron shares have gradually moved on an upward trend to post a 220% gain. Year to date, the company’s share price has accelerated by more than 120%.

Eastern Iron presides a market capitalisation of just $20 million, with approximately 745 million shares on its registry.

The post Why the Eastern Iron (ASX:EFE) share price is rocketing 107% today appeared first on The Motley Fool Australia.

More reading

• Magellan (ASX:MFG) share price slumps on FUM update
• 3 ASX 200 shares hitting fresh all-time highs on Monday
• Broker gives its verdict on the Wesfarmers (ASX:WES) share price
• Up 15% in a month, the Carsales.com (ASX:CAR) share price hits record high
• Why the A2 Milk (ASX:A2M) share price is souring again today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 having a pretty poor start to the trading week so far this Monday. At the time of writing, the ASX 200 is down 0.35% to 7,496 points. One ASX 200 share is faring far worse today though. That would be Magellan Financial Group Ltd (ASX: MFG).

The Magellan share price is currently down a hefty 1.25% to $43.32. That stretches this asset manager’s year-to-date losses in 2021 so far to 18.3%. The company is also now down around 26% over the past 12 months.

So what has spooked Magellan investors today?

What’s with the Magellan share price today?

Well, it’s likely that the company’s funds under management (FUM) update for the month of August which Magellan released this morning is what’s behind the sell-off we have seen this Monday.

This morning, Magellan told investors that its total FUM as of 31 August stood at $117.955 billion. That was a small increase of 0.79% on where the company’s FUM stood at the end of the previous month of July – $117.027 billion.

The company saw both its retail and institutional funds under management increase slightly. Retail FUM rose from $31.426 billion at the end of July to $31.52 billion at the end of August. Institutional FUM also rose from $85.6 billion to $86.44 billion.

Meanwhile, Magellan’s three investment strategies – Global Equities, Infrastructure Equities and Australian Equities – also all rose. Global saw its total value rise from $87.93 billion to $88.48 billion over the month.

Infrastructure rose from $19.59 billion to $19.85 billion, while Australian Equities upticked to $9.63 billion from $9.51 billion.

Investors FUM their noses

So with rising FUM numbers across the board, why are investors selling Magellan off on this news? Well, it’s possible that the market was expecting a little more from this fund manager. August ended up being quite a fruitful month for both the ASX and global markets. As we covered last week, the ASX 200 Index managed a rise of 2.04% for August.

We also saw strong moves overseas too. The US markets’ S&P 500 Index (INDEXSP: .INX) did even better, shooting up by more than 3% over the month just passed. This makes Magellan’s overall FUM growth, as well as the performance of its equity portfolios, look a bit sluggish by comparison.

This may be what is weighing on the Magellan share price today. At the current pricing, Magellan has a market capitalisation of $7.99 billion, a price-to-earnings (P/E) ratio of 30 and a dividend yield of 4.86%.

The post Magellan (ASX:MFG) share price slumps on FUM update appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares that could be buys in September 2021
• Own Magellan (ASX:MFG) shares? A $5b competitor could be hitting the ASX
• 2 quality ASX shares to look at this weekend
• Top brokers name 3 ASX shares to sell today
• BHP to sell assets to Woodside, Domain surges and Magellan crashes. Scott Phillips on Nine’s Late News

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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The S&P/ASX 200 Index (ASX: XJO) has bounced back strongly on Monday after sliding 1.10% to 7,440 within the first hour of trade.

At the time of writing, the ASX 200 is down 0.22% to 7,506 with weakness across energy and materials sectors partly offset by strength across tech, consumer discretionary and utilities.

While the market continues to chop back and forth in September, here are the ASX 200 shares marking new all-time highs today.

ASX 200 shares scoring fresh all-time highs on Monday

1. Carsales.Com Ltd (ASX: CAR)

The Carsales share price has been trending strongly since July, rallying 31% with only a few momentary pullbacks. Its added another 2.32% on Monday to a new all-time high of $25.97.

The move up today is consistent with the strength behind the S&P/ASX Information Technology (INDEXASX: XIJ) index, currently trading 0.85% higher.

The tech index is largely green across the board, headlined by gains from Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and Computershare Ltd (ASX: CPU).

2. IDP Education Ltd (ASX: IEL)

The IDP Education share price is one of few ASX 200 shares to stage a V-shaped recovery on the day of its earnings.

IDP shares dived 9.53% to $25.24 within the first few minutes of trade, before closing 1.72% higher at $27.90.

The company’s FY21 results seemed deserving of the initial selloff with revenue down 10% to $528.7 million and adjusted net profit after tax (NPAT) down 36% to $45 million.

The IDP share price rallied 14.2% since results day, marking a new all-time high of $32.72 on Monday.

3. Domino’s Pizza Enterprises Ltd. (ASX: DMP)

The Domino’s share price is on track to become one of the top performing ASX 200 shares this year, surging 78.5% year-to-date.

The company’s FY21 full-year results announcement on 18 August was a recent catalyst that helped its shares rally to new all-time highs.

Domino’s revealed well-rounded growth in FY21 with Group sales increasing 14.6% to $3.74 billion and NPAT surging 29.2% to $188.2 million.

Domino’s was pleased to announce that 285 new stores were opened during the period, reflecting a 10.7% increase in overall stores. This figure surpassed its previous target of between 7% to 9% within the next 3 to 5 years.

The post 3 ASX 200 shares hitting fresh all-time highs on Monday appeared first on The Motley Fool Australia.

More reading

• Up 15% in a month, the Carsales.com (ASX:CAR) share price hits record high
• How to turn $20,000 into $475,000 in 10 years with ASX shares
• These ASX 200 dividend shares slashed their payouts in August
• 3 quality ASX growth shares analysts rate as buys
• 3 ASX 200 shares hit new all-time highs this earnings season

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. owns shares of and has recommended Idp Education Pty Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and carsales.com 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 Wesfarmers Ltd (ASX: WES) share price is edging higher on Monday afternoon.

At the time of writing, the conglomerate’s shares are up 0.3% to $57.95.

This means Wesfarmers’ shares are now up a decent 12.5% since the start of the year.

Is the Wesfarmers share price still good value?

Unfortunately, one leading broker believes the Wesfarmers share price could have peaked for the time being.

According to a note out of Citi from last week, its analysts have retained their sell rating but lifted their price target slightly to $49.00.

Based on the current Wesfarmers share price, this implies potential downside of approximately 15.5% over the next 12 months.

What did the broker say?

While Citi notes that Wesfarmers delivered a result in line with its expectations in FY 2021, it has concerns about the year ahead. This is due to the company cycling a strong sales period and facing lengthy COVID-related store closures.

The broker commented: “Wesfarmers delivered an in line result, reporting $2,421 million in underlying NPAT for FY21. Store closures and cycling of a strong sales base presents challenges in FY22e.”

In addition, Citi highlights that Wesfarmers’ retail businesses are facing a number of headwinds.

It explained: “The result featured many topics familiar to retailers: supply-chain disruptions, rising freight and commodity costs, transition to online, and increasing investment in digital and automation.”

And while it was pleased with its capital return announcement, it simply isn’t enough for a more positive rating due to the current Wesfarmers share price valuation.

Citi concluded: “The company announced a $2.3 billion capital return program. We upgrade earnings and Target Price to $49.00 on better-than-expected result from Kmart Group but maintain Sell on valuation grounds.”

The post Broker gives its verdict on the Wesfarmers (ASX:WES) share price appeared first on The Motley Fool Australia.

More reading

• Wesfarmers (ASX:WES) share price in focus as Bunnings and Officeworks reopen Sydney stores
• Top brokers name 3 ASX shares to sell next week
• These were the worst performing ASX 200 shares last week
• Why the Wesfarmers (ASX:WES) share price is down 9% in the last week
• These ASX 200 dividend shares increased their payouts this earnings season

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

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