Tag: Motley Fool

Aussie Broadband Ltd (ASX: ABB) shares made their debut on the ASX in October 2020 and have since had a wild ride on the bourse.

The internet service retailer has seen its share price rocket from $1.90 on its first day to almost $6 just over a year ago. It was trading at $3.16 at market close on Thursday, a far cry from its former glory.

So, which way is the stock headed long term? Could it be worth buying right now?

How long can the little guy take the fight to the giants?

By Tony Yoo: The NBN resale industry is one of the most commoditised markets in Australia.

Many consumers will simply seek out the best deal – what speed and volume of internet data they will receive for the cost paid each month.

However, Aussie Broadband has bucked the industry trend by carving out a niche as a quality provider.

The company has managed to lure customers away from bigger rivals with deeper pockets by touting an Australian call centre and promising consistently faster speeds, all in return for more expensive monthly fees.

Is this a sustainable strategy?

I say no. 

Sooner or later, Aussie Broadband will hit a cap on the number of people who are interested in paying more for better service. The simple fact is that most Australians just want the best value internet plans.

Internet connections, especially for the residential market, have become a utility, much like electricity or water. The reality is that no one chooses a more expensive electricity provider because they like the local call centre.

Already Aussie Broadband exists on a tiny net profit margin of 2.26% for the December quarter, as shown below.

To its credit, the Victorian company has expanded its offerings for business clientele to open up new avenues for growth.

However, the big players like Telstra Group Ltd (ASX: TLS) and Optus enjoy a huge advantage in this domain too, with existing relationships and a large network of face-to-face customer service personnel.

This is not to say Aussie Broadband cannot succeed in the future. It’s just the risk is too much for me to buy the shares right now.

Motley Fool contributor Tony Yoo does not own shares in Aussie Broadband Ltd.

A classic disruption story with more growth in its sights

By Brooke Cooper: Aussie Broadband is my pick of the ASX telecommunication shares, for one distinct reason: customer service.

The company oozes a culture of customer service. Indeed, it’s topped the Ray Morgan Trusted Brand Awards in its category since 2020, beating out 20 rivals for the crown of Australia’s most trusted telco.

Judging from my own experiences, and the company’s growth, plenty of telco customers seek value for money but stay for customer service. By providing both, Aussie Broadband has successfully disrupted the Aussie telecommunications industry.

Just look at how fast its broadband customers have grown in recent years:

Financial year	Total Broadband services (approx.)	Year-on-year % increase
FY20	261,361	–
FY21	400,848	53%
FY22	584,793	46%

At the end of the first half of this financial year, the company had more than 635,000 broadband connections – a 27% increase on the prior comparable period.

It also boasted 7% of the NBN broadband market share and had just 1.2% of monthly residential customer churn over the period.

On top of that, the company has been expanding into neighbouring markets. Its growing list of enterprise and government customers ­is a factor QVG Capital analysts expect could drive “a re-rating of the company”.

But, as we know, past performance isn’t an indication of future performance. Not to mention, most disruption stories are also volatile ones with plenty of risks.

Still, I’m confident the company has the ‘stickiness’ and proven ability to continue growing its market share and offerings from here.

It’s currently Australia’s fifth-largest telco, with aspirations to enter the top four by 2025. To do so, it plans to polish its marketing strategy, develop and launch new products, and improve operational efficiencies.

I admit, Aussie Broadband will probably never take on the market share boasted by the likes of Telstra, but I still think it’s a company worth investing in for growth. And the fall in its share price over the last year makes it a more affordable buy.

Motley Fool contributor Brooke Cooper does not own shares in Aussie Broadband Ltd.

The post Aussie Broadband shares: Bull vs. Bear appeared first on The Motley Fool Australia.

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More reading

• Why has the Aussie Broadband boss sold off $1.6 million of shares in April?
• Are Aussie Broadband shares capable of another bull run?
• 2 fresh-faced ASX shares that could leave investors smiling 10 years from now
• ‘Rerating likely’: 2 ASX shares to buy before they take off

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The National Australia Bank Ltd (ASX: NAB) share price took an almighty beating on Thursday.

The banking giant’s shares ended the day over 6% lower at $26.72.

This leaves NAB’s shares trading within throwing distance of their 52-week low.

Why was the NAB share price sold off?

Investors were hitting the sell button yesterday after the bank’s half-year results fell short of expectations.

Goldman Sachs summarised what went wrong for NAB. It commented:

NAB’s 1H23 cash earnings were up 17% on pcp but 4% below GSe, driven by lower-than-expected NIMs. While headline NIM was underwhelming, we note that a driver of this was a reclassification of net interest income into trading income.

Is this a buying opportunity?

While Goldman Sachs clearly wasn’t impressed with the bank’s results, it does still see a lot of value in the NAB share price.

As a result, the broker has retained its buy rating on its shares with a reduced price target of $30.69. This implies potential upside of almost 15% for investors over the next 12 months.

In addition, Goldman is now forecasting a $1.66 per share fully franked dividend in FY 2023. This represents a 6.2% yield, which boosts the total return on offer with NAB shares to 21%.

What did the broker say?

Goldman remains positive on the NAB share price for five key reasons. It explains:

Our Buy rating on NAB is predicated on: i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes, and we believe NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years and its investments continue to yield benefits (A$400 mn expected in FY23E), which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s strong capital surplus position (A$3.1 bn of surplus capital above the top-end of its target CET1 range of 11.0-11.5%) allows flexibility for further buy-backs, v) NAB returns improvements vs. peers is not reflected in valuations (details within), and vi) our revised TP offers c. 21% TSR.

The post Is the NAB share price in the buy zone after crashing? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Genesis Minerals, NAB, oOh!Media, and Super Retail shares are sinking today
• Everything you need to know about the NAB dividend
• NAB shares dive 8% as EPS downgrades expected

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

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Liontown Resources Ltd (ASX: LTR) shares finished the session flat yesterday at $2.75 each.

It’s been an exciting six weeks for Liontown shareholders since the company announced it had received another takeover bid from US lithium giant Albemarle (NYSE: ALB) in late March.

The ASX lithium share has skyrocketed 81% since the company revealed its rejection of the $2.50 per share offer.

All of this has prompted some serious institutional investor trading, and Goldman Sachs is among it.

Let’s investigate.

Liontown shares roar on Albermarle offer

On 27 March, the day before the big announcement, Liontown shares closed at $1.525.

Then came the news pre-open the next day, and off they went to the stratosphere.

Liontown shares closed the day on 28 March at $2.57.

And they’ve kept on rising since.

Since the announcement, several institutional brokers have been jumping in and out of Liontown shares seeking to generate short-term profits while the upward momentum is strong.

One of them is top broker Goldman Sachs.

Let’s check out their activity.

How ‘instos’ operate

First, a quick lesson on how institutional investors work.

The ‘instos’ often duck and weave in and out of ASX shares looking to make profits on short-term price movements (up or down).

Because they are investing enormous sums of money each time they trade, just a few cents of movement can generate a significant capital gain for them and their clients.

Sometimes their trading activity breaches the 5% ‘substantial holder’ threshold, which has to be declared on the ASX for all of us to see. From there, we can watch to see what they do with their holdings.

This gives us ordinary investors an idea as to what price to buy and sell a particular ASX share.

Handy, huh?

So, let’s see what Goldman Sachs has been doing with Liontown shares of late.

Goldman profits on the big announcement

How’s this for timing?

Goldman became a substantial holder of Liontown shares just a week before the Albemarle announcement. They took a 5.08% stake on 22 March.

On the day Liontown announced the Albemarle offer, Goldman took some profits. It ceased to be a substantial holder on the day.

A couple of weeks later on 11 April, Goldman once again became a substantial holder with a 5.28% stake.

The ASX disclosure doesn’t tell us at what price Goldman rebought Liontown shares.

But the ASX lithium share opened that day at $2.60, hit a low of $2.575, a high of $2.71, and then closed at $2.62.

Goldman held the stock for just two days before ceasing to be a substantial holder on 13 April.

On that day, Liontown shares opened at $2.70, hit a low of $2.67, a high of $2.73, and then closed at $2.73.

Over the past six weeks, the highest price that Liontown shares have traded at is $2.84.

What does Goldman really think of Liontown shares?

Interestingly enough, Goldman analysts actually aren’t that keen on Liontown shares.

In fact, they foresee a 45% drop from here.

In its most recent broker note on Liontown shares, published one day after the takeover news, Goldman issued a neutral rating with an unchanged 12-month share price target of $1.50.

Goldman noted the key risks included construction and commissioning risk, cost inflation, lithium prices, macro risks, growth, and mergers and acquisitions.

In the note, Goldman said:

While we like the outlook for the ramped up [flagship Kathleen Valley Lithium Project] and future optionality, we rate LTR a Neutral on:

(1) Valuation: LTR is trading at a discount to our NAV following recent share price performance, and remains at a discount to peers on both implied LT spodumene price and EV/reserves, while also having the second highest valuation sensitivity to our LT lithium pricing

(2) Strong capacity outlook, though pre-construction: Once ramped up to 500ktpa, Kathleen Valley will have a competitive scale (before expanding to 700ktpa toward the end of the decade)

(3) Rapid de-leveraging post-ramp up supports future growth and capital returns: We expect LTR to return to net cash by FY27E, and see optionality around the proposed timing of a downstream development, though capital returns lag peers with already operating projects.

At the time of writing, Goldman is no longer a substantial holder of Liontown shares.

This does not necessarily mean it has sold out of Liontown completely.

What’s the latest on Albemarle?

Two days after Liontown announced its rejection of the offer, the company issued a statement revealing Albemarle had near doubled its stake from about 2.2% to 4.3% (that’s less than Goldman has held recently).

Liontown said Albemarle had requested a copy of the register in order to contact shareholders directly about its offer.

On Tuesday, Liontown hosed down media speculation that it had received an offer from another suitor.

Broker Bell Potter has a $3.35 price target on Liontown shares.

As my Fool colleague James reports, the broker reckons Albemarle’s bid was “reasonable, but not full”.

Liontown released a new investor presentation on Tuesday.

The post Goldman Sachs is selling off its Liontown shares. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• 5 top ASX shares that would have more than doubled your money in 2023
• Liontown share price climbs on response to takeover rumours
• ASX lithium shares: Short-term pain for long-term gain?
• 2 ASX lithium shares this US institutional investor is buying up big (and one it’s selling)
• Making it rain: Could this signal a boom for ASX 200 lithium stocks?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) recovered from its lows but just fell short of positive territory. The benchmark index was down 4.3 points to 7,193.1 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to end the week in the red following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 15 points or 0.2% lower this morning. In the United States, the Dow Jones was down 0.9%, the S&P 500 fell 0.7%, and the NASDAQ dropped 0.5%.

ANZ half-year results

The ANZ Group Holdings Ltd (ASX: ANZ) share price will be one to watch today when the banking giant releases its half-year results. According to a note out of Goldman Sachs, its analysts are expecting the bank to report cash earnings growth of 27.8% to $3,978 million. This is ahead of the consensus estimate of $3,769 million. An interim dividend of 80 cents per share is expected. Macquarie Group Ltd (ASX: MQG) is also releasing its results today.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price is down 0.2% to US$68.46 a barrel and the Brent crude oil price is flat at US$72.33 a barrel. Demand concerns continue to weigh on sentiment.

Gold price rises

Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price charged higher overnight. According to CNBC, the spot gold price is up 1% to US$2,056.7 an ounce. Concerns over the US banking sector has lifted the safe haven asset to within sight of a record high.

NAB shares remain a buy

Analysts at Goldman Sachs have retained their buy rating on National Australia Bank Ltd (ASX: NAB) shares despite being disappointed with its half-year results. Goldman has a buy rating and trimmed price target of $30.69 on its shares. This implies potential upside of almost 15% for investors over the next 12 months.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• St Barbara share price jumps 10% on Silver Lake proposal
• Why CogState, Jumbo, Magellan, and St Barbara shares are rising today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Genesis Minerals, NAB, oOh!Media, and Super Retail shares are sinking today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re an income investor looking for dividends to boost your income, then you may want to consider the ASX shares listed below.

Both of these ASX dividend shares have been rated as buys and tipped to provide investors with attractive yields in the coming years.

Here’s what you need to know about these shares:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that has been tipped as a buy is this industrial and office property company.

Macquarie is positive on the company and has an outperform rating and $3.28 price target on its shares.

Its analysts believe Dexus Industria’s earnings profile is superior to most of its peers. This is due to its development pipeline and being leveraged to industrial rental growth.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.7 cents in FY 2024. Based on the current Dexus Industria share price of $2.85, this will mean yields of 5.75% and 5.85%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another ASX dividend share that has been tipped as a buy is Suncorp. It is one of Australia’s leading insurance and banking companies.

Morgans is a fan of Suncorp and currently has an add rating and $14.44 price target on its shares.

As well as the potential benefits from its efficiency program, the broker likes Suncorp due to its attractive valuation and generous yield. It highlights that “[w]ith SUN trading on 11.5x FY24F earnings and a 6% dividend yield, we see it as reasonable value at current levels.”

Morgans is forecasting fully franked dividends per share of 77.7 cents in FY 2023 and 87.8 cents in FY 2024. Based on the current Suncorp share price of $12.36, this will mean yields of 6.3% and 7.1%, respectively.

The post Brokers say these ASX dividend shares are top buys appeared first on The Motley Fool Australia.

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More reading

• Down 37% in a year, fundie says Block shares offer ‘very attractive rate of return’
• Why did the A2 Milk share price sink 7% in April?
• Analysts name 2 ASX 200 dividend shares to buy for passive income
• Here are the top 10 ASX 200 shares today
• St Barbara share price jumps 10% on Silver Lake proposal

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

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Block Inc (ASX: SQ2) shares have well and truly been hammered over the last 12 months.

As you can see on the chart below, during this time, the payments giant’s shares have lost over two-thirds of their value. This follows weakness in the tech sector and concerns over a short seller report by Hindenburg research.

Is the Block share price weakness a buying opportunity?

QVG Capital’s portfolio manager of the long-short fund, Josh Clark, appears to believe that investors should be taking advantage of the weakness in the company’s share price.

Given that Clark goes both long and short with stocks, it may be comforting to learn that he isn’t concerned by the short seller report.

In fact, the portfolio manager believes the report has done investors a favour by dragging Block shares down to an attractive level. He told the AFR:

Despite the length of the short report, it failed to raise many novel points and found nothing existential. We view the report as a sideshow that has created a value opportunity as most of the concerns raised have natural counterpoints.

Clark then went on to explain why Block could be a great long-term pick for investors. He adds:

The short answer as to why Block is still a good bet is that it is an innovative banking solution for individuals and small business in a US banking system that is archaic in its experience. Block isn’t burdened by the corporate structure, legacy technology and costly network that its competition suffers from. We see a very attractive rate of return without heroic assumptions for future growth or margin.

Is anyone else bullish on Block?

Clark isn’t alone in believing that Block shares could be good value at the current level.

According to a recent note out of Citi, its analysts have a buy rating and US$90 (A$134) price target on its shares.

Based on the current Block share price, this implies potential upside of almost 50% for investors over the next 12 months.

The post Down 37% in a year, fundie says Block shares offer ‘very attractive rate of return’ appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why Block, Nanosonics, Pilbara Minerals, and Weebit Nano shares are racing higher
• Why is the Block share price tumbling 6% today?
• Why 29Metals, Block, Champion Iron, and Zip shares are dropping today

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 positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The A2 Milk Company Ltd (ASX: A2M) share price had a tough time in April.

During the month, the infant formula company’s shares lost almost 7% of their value.

This means A2 Milk shares are now down almost 23% since the start of the year.

Why was the A2 Milk share price under pressure in April?

The A2 Milk share price was trading largely flat for much of the month until the release of an announcement late on.

That announcement was made in response to a profit guidance downgrade by its dairy processing partner, Synlait Milk Ltd (ASX: SM1).

Synlait pointed the finger at A2 Milk for its downgrade, which led to the infant formula company responding with a trading update.

A2 Milk revealed that it has lowered its total forecast production volume needs for English label consumer-packaged infant milk formula by ~1,650 metric tonnes for the period March through to June.

This was driven by significant daigou weakness, inventory build-up, and distribution model adjustments. The broker explained:

This is mainly due to: continued weakness in the ANZ Daigou / reseller market which is down 49% in the most recently reported quarter from Kantar; the impact of significant cumulative delays in English label consumer-packaged IMF deliveries from Synlait to a2MC over an extended period expected to be fulfilled in 4Q234 resulting in a material amount of inventory arriving within a relatively short period which needs to be managed; and ongoing refinement of the Company’s English label distribution model resulting in more customers and distributors being supplied directly out of Hong Kong and China leading to lower future a2MC and channel inventory requirements.

And while A2 Milk reaffirmed its previous guidance for FY 2023, albeit at the low end of its range, investors appear to be wondering what the above means for its performance in FY 2024.

This uncertainty appears to be weighing heavily on sentiment and ultimately the A2 Milk share price.

The post Why did the A2 Milk share price sink 7% in April? appeared first on The Motley Fool Australia.

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More reading

• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• Here’s what this top broker thinks of the A2 Milk share price after recent weakness
• Why A2 Milk, Mesoblast, Mineral Resources, and Synlait shares are sinking
• A2 Milk share price on watch following worrying update
• The A2 Milk share price has fallen 16% in around two months: Time to buy?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The good news for income investors is that there are a large number of ASX 200 stocks that share a good portion of their profits with shareholders. This makes the share market a great place to generate passive income.

But which ASX 200 shares would be good options right now for a passive income boost? Two that have recently been rated as buys are named below:

BHP Group Ltd (ASX: BHP)

If you’re not averse to investing in the mining sector, then BHP could be a top option for income investors. That’s because this mining giant has been tipped to provide investors with some very big dividend yields in the near future.

For example, a note out of Goldman Sachs from this morning reveals that its analysts are forecasting fully franked dividend yields of 7% in FY 2023 and 5.6% in FY 2024. This means that $10,000 invested could provide passive income of $700 and $560, respectively.

Another positive is that the broker also sees scope for the BHP share price to rise from current levels. It currently has a buy rating and $49.90 price target on its shares. This implies potential upside of 13.5% over the next 12 months.

Centuria Industrial Reit (ASX: CIP)

Another ASX 200 dividend share that could provide investors with a source of passive income is Centuria Industrial.

It is an industrial-focused property company that owns a portfolio of 88 high-quality, fit-for-purpose industrial assets worth a total of $3.9 billion. These assets are in-demand with users thanks partly to being situated in key in-fill locations and close to key infrastructure.

UBS is very positive on the company and is expecting it to pay dividends per share of 16 cents in both FY 2023 and FY 2024. Based on the current Centuria Industrial share price of $3.13, this represents yields of 5.1% in both financial years. This means that $10,000 invested in its shares could yield $510 of passive income each year.

The broker also sees decent upside for its shares with its buy rating and $3.68 price target.

The post Analysts name 2 ASX 200 dividend shares to buy for passive income appeared first on The Motley Fool Australia.

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More reading

• 4 ASX 200 shares just upgraded by brokers
• Why the iron ore price is ‘not out of the danger zone’
• Why Goldman Sachs just slapped a buy rating on BHP shares
• Investing for passive income? Here’s your dividend yield if you bought BHP shares in July
• Bye bye OZ Minerals shares

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a modest decline. At the time of writing, the benchmark index is down slightly to 7,191.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why these shares are rising:

CogState Limited (ASX: CGS)

The CogState share price is up 13% to $1.72. Investors have been scrambling to buy this neuroscience technology company’s shares after Eli Lilly and Company announced positive results from a Phase 3 study in Alzheimer’s disease. Its investigational treatment, donanemab, significantly slowed cognitive and functional decline in people with early symptomatic Alzheimer’s disease. This bodes well for demand for CogState’s services.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is up 5.5% to $14.33. This morning, Goldman Sachs responded positively to this lottery ticket seller’s trading update by reiterating its buy rating with an improved price target of $16.10. Goldman was pleased with Jumbo’s proposed pricing changes, which the broker expects to have a positive impact on its earnings outlook.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 3.5% to $8.32. This is despite the struggling fund manager releasing another bleak funds under management (FUM) update this morning. Magellan advised that it experienced net outflows of $2.4 billion during April. Though, thanks to favourable market movements, its FUM only declined by $500 million month on month.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 10% to 70.25 cents. This follows a rise in the gold price, which is lifting the whole industry today. In addition, the gold miner has put its shares in a trading halt this afternoon. This appears to be related to news involving gold developer Genesis Minerals Ltd (ASX: GMD), which has also been paused from trade.

The post Why CogState, Jumbo, Magellan, and St Barbara shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Why Genesis Minerals, NAB, oOh!Media, and Super Retail shares are sinking today
• Why Flight Centre, Jumbo, Pilbara Minerals, and Ramelius shares are charging higher
• 5 things to watch on the ASX 200 on Friday
• 3 ASX 300 mining shares climbing following quarterly updates
• 12 ASX dividend shares with yields over 10%. Are they too good to be true?

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 positions in and has recommended Cogstate and Jumbo Interactive. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool Australia has recommended Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) shares are recovering from this morning’s 55-point dip shortly after the open.

But they remain in the red at the time of writing.

ASX 200 shares are currently sitting at 7,183.2 points, down 0.2%.

As reported in The Australian today, brokers have upgraded the following four ASX 200 shares.

Let’s take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price is currently $43.96, up 1.6% for the day so far.

Goldman Sachs has increased its rating on the ASX 200 mining share to buy with a price target of $49.90. This implies a potential upside of 13.5% over the next 12 months.

The broker has now incorporated the value of BHP’s acquisition of Oz Minerals into its pricing. It thinks there is good value in these blue-chip ASX 200 shares right now.

Goldman says:

… we upgrade BHP to Buy (from Neutral) based on attractive valuation after the recent ~15% drop in the stock price since January.

The slide in share price is due to the recent drop in iron ore and copper prices on the back lower than expected Chinese steel demand and developed market copper demand in 1Q.

BHP shares are down 3% in the year to date.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is currently $20.89, up 0.4% for the day so far.

Morgans has raised the ASX 200 travel share to add; however, Jefferies has gone the other way.

Jeffries cut its rating to underperform with a 12-month share price target of $18.

The ASX 200 travel share added 2% yesterday after the company updated its guidance.

Flight Centre is now targeting between $270 million and $290 million of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA).

Flight Centre also reported a record-breaking month for March.

Total transaction value (TTV) on its leisure and corporate legs surpassed $1 billion for the first time ever.

Flight Centre shares are up 45% over the year to date.

Amcor CDI (ASX: AMC)

The Amcor share price is currently $15, up 0.6% for the day so far.

JPMorgan has raised its rating on the ASX 200 packaging company to overweight with a share price target of $16.30.

Competing broker Jefferies has also raised its rating to hold with a price target of $14.

Amcor released its Q3 FY23 update yesterday, revealing a 34% decline in quarterly net income to US$177 million. This led to management downgrading its full-year earnings guidance.

Amcor now expects to deliver earnings per share (EPS) of between 72 US cents to 74 US cents. The previous guidance was 77 US cents to 81 US cents.

Amcor announced an unfranked dividend of 12.25 US cents to be paid on 20 June.

As we reported, the Amcor share price dropped to a 52-week low of $14.68 yesterday.

The ASX 200 share has taken a 14% hit over the year to date.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay share price is currently $60.06, down 2.9% for the day so far.

CSLA has raised its rating on the ASX 200 healthcare share to accumulate with a $67 price target.

Meantime, Wilsons has cut its rating to market weight with a price target of $65.88.

Investors weren’t too impressed with Ramsay’s Q3 FY23 business update yesterday.

Ramsay reported a 6.6% bump in its financial year-to-date EBITDA.

This sent the Ramsay share price down 5%.

Ramsay told the market today that it’s launching two medium-term note programs.

The ASX 200’s shares are down 6.7% over the year to date.

The post 4 ASX 200 shares just upgraded by brokers appeared first on The Motley Fool Australia.

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More reading

• How did the Flight Centre share price manage to flog the ASX 200 in April?
• Why the iron ore price is ‘not out of the danger zone’
• Why are these ASX shares at 52-week lows?
• Why Goldman Sachs just slapped a buy rating on BHP shares
• Here are the top 10 ASX 200 shares today

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in BHP Group and Flight Centre Travel Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, JPMorgan Chase, and Jefferies Financial Group. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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