Tag: Motley Fool

The Appen Ltd (ASX: APX) share price is enjoying some attention today. This comes after a leading broker released a positive note regarding the language technology data and services company.

At the time of writing, shares in Appen are swapping hands for $12.57, up 6.6%. Although, the Appen share price is still more than 65% lower than where it was a year ago.

Let’s uncover the latest news propelling the tech company higher today.

Increased ad growth attractive for Appen share price

Analysts at Citi have run the ruler over Appen shares and like what they see.

According to the note, the broker sees increased investment from US tech titans Facebook and Google as tailwinds for the Aussie company.

Specifically, an acceleration in advertising revenue growth could act as a significant driver for Appen’s AI/ML data services.

Last week, Google’s parent company Alphabet reported an 84% year-over-year (YoY) increase to US$7 billion from YouTube ad revenue in Q2. Meanwhile, Facebook delivered a 56% YoY increase in advertising revenue – pulling US$28.58 billion in Q2 FY21.

It appears analysts at Citi are expecting some of these funds to trickle down to Appen to promote further growth.

The broker maintained its buy rating and $18.80 share price target on Appen, representing a potential upside of 49.6%.

Potential M&A target

In mid-July, Citi put a circle around Appen as a potential merger and acquisition target. At the moment, activity in the M&A space is at a multi-year high and the broker believes the former ASX darling could find itself down M&A sights.

And the M&A floodgates are gushing #ausbiz #ASX

Morgan Stanley chart. pic.twitter.com/NcXehvYVUL

— David Scutt (@Scutty) June 9, 2021

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Siraj Ahmed of Citi explained:

With the recent increase in M&A and given Appen’s position as a leader in the AI training data space as well as client exposure, we would not be surprised if Appen was a potential acquisition target for an IT Services or BPO firm

Finally, the company trades on a price-to-earnings (P/E) ratio of 27.8 based on the current Appen share price.

Appen is slated to report its half-year results on 26 August 2021.

The post Appen (ASX:APX) share price jumps 5% following positive broker update appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high
• These were the worst performing ASX 200 shares last week
• Here’s why the Appen (ASX: APX) share price is down 50% in 2021 so far
• 6 ASX shares to rocket when COVID Delta passes
• 2 exciting ASX tech shares that could be buys

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of Appen Ltd and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Appen Ltd, and Facebook. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Facebook. 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 Zip Co Ltd (ASX: Z1P) share price is trading notably higher for a second day in a row on Tuesday.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are up a sizeable 9% to $7.90.

This means the Zip share price is now up 19% in the space of two days.

Why is the Zip share price racing higher?

Investors have been bidding the Zip share price higher this week after Afterpay Ltd (ASX: APT) agreed to be acquired by US payments giant Square.

This sparked hopes that Zip may receive a takeover approach of its own. Especially given recent speculation that rival Klarna has been building up a secret position in the BNPL provider.

Can its shares keep rising?

The good news for shareholders is that one leading broker believes the Zip share price can still keep rising.

According to a note out of Citi this morning, its analysts have retained their buy rating and $8.90 price target on the company’s shares.

Based on the latest Zip share price, this implies potential upside of 12.5% over the next 12 months.

What did the broker say?

While Citi acknowledges that Square’s acquisition of Afterpay increases the competitive risks for Zip and its QuadPay business, it also notes that it highlights its takeover appeal.

Citi commented: “We see mixed read-throughs for Zip from Square’s takeover of Afterpay – on the one hand it increases the takeover appeal for Zip, especially given the fast growing US business. However, arguably the Afterpay sale speaks to the importance of scale especially given increasing competition and our concern is that the combination of Square and Afterpay increases the medium-term risk for Zip given it increases the scale disadvantage of Quadpay relative to its competitors in the US.”

The post Top broker gives its verdict on the Zip (ASX:Z1P) share price appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Bellevue Gold, Pilbara Minerals, & Zip are charging higher
• Here’s why the Zip (ASX:Z1P) share price is rocketing 8%
• What does Afterpay’s takeover mean for the Zip (ASX:Z1P) share price?
• ASX 200 rises, Afterpay soars, Zip jumps
• These are the 10 most shorted ASX 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. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Stocks got back into the groove on Monday, and the Nasdaq Composite (NasdaqINDEX: ^IXIC) helped lead the way higher. Even as other major market benchmarks gave up much of their daily gains, the Nasdaq was still up a third of a percent as of 12:30 p.m. EDT.

Electric vehicles have been a hot area of the market lately, and Tesla (Nasdaq: TSLA) remains the leader in that high-profile industry. Even though Chinese competitors were the ones doing most of the talking on Monday, Tesla’s stock continued to move higher as investors seemed confident in the company’s ability to remain atop the fast-growing market. Below, we’ll look at what China’s EV companies said and what it means for Tesla and the broader industry.

China loves electric vehicles

Several Chinese electric automakers reported their latest monthly results. They all showed continuing growth, albeit at different rates.

Shares of Nio (NYSE: NIO) were up nearly 3% Monday afternoon. The company reported delivering 7,931 vehicles in July, jumping almost 125% compared to the same month a year ago. Nio shipped 3,669 ES6 five-seat SUVs, 2,560 EC6 coupe-model SUVs, and 1,702 ES8 six- and seven-seat SUVs. That brought the total number of vehicles that Nio has delivered in its history above the 125,500 mark.

XPeng (NYSE: XPEV) saw an even bigger rise, with its stock climbing 6%. The automaker reported deliveries of 8,040 vehicles in July, rising 228% year over year. Deliveries of the P7 midsized sedan hit 6,054, while XPeng sent out 1,986 of its compact SUV model, the G3. 2021 has been an exceptional year for XPeng, with year-to-date deliveries through seven months almost quintupling the same figure from 2020. The company attributed much of the popularity of the P7 to its navigation-guided pilot driver assistance platform, and ongoing technological innovation could make that feature even more valuable to drivers.

Lastly, Li Auto (Nasdaq: LI) led the pack with 8,589 deliveries in July. The company’s Li ONE has been a massive hit, with year-to-date deliveries of nearly 38,750. July marked a record month for deliveries once again, and co-founder Yanan Shen predicted that new upgrades by the end of 2021 will further support the positive perception of Li Auto’s vehicle model for consumers. Li’s shares were up 2% on the day.

Tesla keeps winning

Some might have thought that gains for Chinese EV stocks would mean losses for Tesla, but that’s not how investors looked at it. Instead, Tesla stock rose 5%, as shareholders seemed to assume that if China’s own domestic automakers are having success, so too is Tesla in serving the Chinese market through vehicles from its Shanghai Gigafactory facility.

Tesla did get a vote of confidence from KGI Securities Monday. Analysts gave Tesla an outperform rating and set a price target of $855 per share, implying almost 20% further upside from where the stock trades currently.

The other news item affecting Tesla came from Piedmont Lithium (Nasdaq: PLL), which said it would delay lithium shipments to the automaker. Piedmont shares were up even though the supplier didn’t specify a date on which it could make good on its agreement with Tesla.

As the leader in the EV space, Tesla has been able to keep competition at bay while steadily growing the addressable market for electric vehicles of all kinds. That’s a positive for the entire industry, and it means Chinese EV stocks can win without endangering Tesla’s key role in driving innovation forward in the industry.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Tesla keeps winning even as Chinese EV foes watch sales soar appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock popped Monday
• Ampol (ASX:ALD) share price falls on $7m funding for EV fast charging
• Why the Tesla share price jumped 5% on Thursday
• Here are the US shares ASX investors were buying last week
• Why Tesla stock fell on Tuesday

Dan Caplinger 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 NIO Inc., Piedmont Lithium Inc., and Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The EML Payments Ltd (ASX: EML) share price is in the green today.

As of writing, shares in the software as a service (SaaS) company are trading for $3.86 – up 4.89%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.24% lower.

While the company hasn’t made any market announcements for a few days, let’s take a closer look at what may be causing EML shares to lift.

Why EML is rising

One reason for today’s increase could be a rebound from Friday’s update. The update sent the EML share price lower.

EML identified “historical deficiencies in cash” related to dormant e-money accounts in its Irish-based business, Prepaid Financial Services (PFS).

In May, EML shares crashed over 40% in one day when the Central Bank of Ireland announced an investigation into PFS’ card services business over concerns about anti-money laundering compliance.

As PFS, and therefore Ireland serves as the base of all of EML’s European Union (EU) operations, the investigation put significant risk on the company’s continuing operations within the EU.

On Friday’s release, the company explained that the deficiencies pre-date its acquisition of PFS UK. Motley Fool Reported on Friday that EML does not expect the event to have an impact on its profit and loss account. It does, however, expect it will be required to inject £14.1 million ($26.6 million) into safeguarded accounts.

Another reason may just be because the entire tech sector is rising today. Presently, the S&P/ASX All Technologies Index (ASX: XTX) is lifting 3.03%.

EML share price snapshot

Over the past 12 months, the EML share price has increased 30.9%. Year-to-date, however, shares are down 8.75%.

EML Payments has a market capitalisation of around $1.3 billion.

The post EML (ASX:EML) share price up 5% on Tuesday appeared first on The Motley Fool Australia.

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• Two months on, what is the outlook for the EML Payments (ASX:EML) share price?
• The EML Payments (ASX:EML) share price surges 5% today
• The 3 ASX shares that top brokers just upgraded to “buy”
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. 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 EcoGraf Ltd (ASX: EGR) share price is continuing its ascent since the beginning of July, up 30%. This comes after the graphite producer announced it will be evaluating an industrial site in Sweden.

During mid-afternoon trade, EcoGraf shares are racing to 78.5 cents, up 10.56%. In comparison, the All Ordinaries Index (ASX: XAO) is sitting at 7,760 points, up 1.3%

EcoGraf signs land reservation agreement

Investors are buying up EcoGraf shares as the company plans to further expand its presence in the lithium-ion battery market.

In a statement to the ASX, EcoGraf advised it signed a land reservation agreement with the Skelleftea municipality in Sweden. This follows the company’s previous efforts in exploring a number of sites across Europe, including Germany.

EcoGraf is assessing a 65,000 square metre industrial site in Skelleftea as a potential location for its battery anode materials facility. Located in the Vasterbotten region, the area benefits from ample clean and renewable energy. It is considered to have the lowest industrial power costs in all of Europe.

The company will commence a detailed evaluation of the potential development after completing a preliminary assessment to select the site. Pleasingly, the area is of sufficient size to accommodate future expansion for increasing production capacity along with battery anode recycling.

The company says its eco-friendly production process aligns with many world governments adopting new environmental, social and governance frameworks to help transition to cleaner energy.

EcoGraf’s facilities use the company’s patented purification technology which eliminates the use of toxic hydrofluoric acid (HF).

It is expected work will begin on the selected European site once EcoGraf’s new Australian facility is completed.

About the EcoGraf share price

The EcoGraf share price has rocketed by more than 1,118% in the past year and is up an astonishing 360% year-to-date. The surge reflects growing investor confidence within the lithium-ion industry and the company itself.

Based on the current valuations, EcoGraf commands a market capitalisation close to $353.1 million.

The post EcoGraf (ASX:EGR) share price powers 10% ahead on industrial site news appeared first on The Motley Fool Australia.

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• EcoGraf (ASX:EGR) share price lifts 5% on lithium update
• Why the Ecograf (ASX:EGR) share price is soaring 16% today
• Here’s why the Ecograf (ASX:EGR) share price is up 8% 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 Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is falling today amid reports the market is overlooking the value of land owned by the airport.

The Sydney Airport owns 907 hectares of land on the northern side of Botany Bay, some of which is reportedly ripe for development.

Right now, the Sydney Airport share price is $7.74, 0.64% lower than its previous close.

That’s also lower than the $8.25 per share takeover offer put to the airport by a consortium of infrastructure investors. The takeover offer was rejected last month, with Sydney Airport saying it undervalued the company.

Let’s take a closer look at the supposed forgotten value of the Sydney Airport.

Sydney Airport’s hidden value

The Sydney Airport share price is slipping today as reports the market has forgotten about its land holdings swirl.

According to reporting by the Australian Financial Review (AFR), analysts believe Sydney Airport is literally sitting on a $900 million asset.

The publication quoted Macquarie analysts. They’re said to believe if some land were to be developed the Sydney Airport share price could gain 33 cents.

The analysts said Sydney Airport has at least 2 parcels of land – around 54 hectares – that could potentially be developed.

The AFR quoted the analysts as saying:

Given the emerging road connections in the northern land parcels, it is an ideal freight/logistics hub, and possibly a catering location for the airport. However, its current earnings contributions are zero.

Additionally, the analysts said Sydney Airport is currently charging Qantas Airways Ltd (ASX:QAN) 4 times less than market rates for the airline to rent Jet Base. That could be costing the airport between 22 cents and 30 cents per share.

This means the Sydney Airport’s shares are lagging by between 55 cents and 65 cents each.

Sydney Airport share price snapshot

This year has been a good one for the Sydney Airport share price. It is currently 20% higher than it was at the start of 2021. It has also gained 52% since this time last year.

The airport has a market capitalisation of around $21 billion, with approximately 2.7 billion shares outstanding.

The post What’s being overlooked in the Sydney Airport (ASX:SYD) share price? appeared first on The Motley Fool Australia.

More reading

• Why the Sydney Airport (ASX:SYD) share price is up 34% in a month
• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high
• These were the best performing ASX 200 shares in July
• Own Sydney Airport (ASX:SYD) shares? Here’s what to look for during reporting season
• The Qantas (ASX:QAN) share price gained 3% on Tuesday morning

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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is continuing its losing spree, down another 1.68% to $23.98 on Tuesday.

Unfortunately, shares in the iron ore major have tumbled 9.55% in the last three trading sessions, despite a record close of $26.50 last Thursday.

Why the Fortescue share price nose dived from record highs

A sharp fall in iron ore spot prices

Iron ore prices have dived from record levels in recent days, following China’s moves to reduce steel output to reduce its carbon emissions.

The all important iron ore spot price has tumbled from ~US$210/tonne last week, to a 2-month low of ~US$181.

Mining.com reported that China has asked its steel producers to limit this year’s production to no more than 2020 levels. However, production grew nearly 12% in the first half of 2021, meaning a significant cut is required in the second half.

“Shagang Group, the world’s fourth-largest steel mill, said this week that it’s curtailing production and overseas sales to comply with government efforts to cut emissions.”

“That is raising expectations that activity will need to be restricted significantly through the end of the year. At the same time, China has unveiled more measures to curb overseas shipments, with the aim of using lower exports and inventories to offset supply shortfalls.”

The sudden 17% slide in iron ore prices and anticipation that Chinese demand may soften in the second half is driving recent volatility in the Fortescue share price.

Weak Chinese manufacturing figures

China’s Caixin purchasing managers index (PMI) figures, a private gauge of the country’s manufacturing activity, could be another factor weighing on the Fortescue share price.

On Monday, it was reported that PMI figures fell to 50.3 in July, the lowest level since May 2020.

According to MarketWatch, China’s manufacturing activity has struggled to pick as “heavy floods, a resurgence of COVID cases and power shortages in some cities weighed on output and new orders”.

Diversification paying dividends

Diversified miners such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) have held up relatively well in wake of lower iron ore prices, down just 2.25% and 3% respectively in the last three trading sessions.

However, pure play iron ore miners including Mount Gibson Iron Limited (ASX: MGX) and Champion Iron Ltd (ASX: CIA) were quick to sell off, falling a respective 5.58% and 5.83% this week.

Fortescue share price snapshot

The Fortescue share price has unfortunately entered negative year-to-date territory, down 3.43% in 2021.

This compares to its peers such as BHP and Rio Tinto which have lifted a respective 22.62% and 14.26% year-to-date.

The post Why the Fortescue (ASX:FMG) share price has fallen off a cliff appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are beating the iron ore majors – again
• This leading broker believes Fortescue Metals (ASX:FMG) shares can lift
• Own Fortescue (ASX:FMG) shares? Here’s what to look for during reporting season
• Fortescue (ASX:FMG) share price under most pressure as iron ore crashes to bear market
• The Fortescue (ASX:FMG) share price is falling on Monday

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

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If you are looking for some new portfolio additions, then the ASX 200 shares listed below could be worth considering.

Here’s why these ASX 200 shares have been given buy ratings:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX 200 share to consider is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with a portfolio of world class poker machines and digital games.

It has returned to form in FY 2021 thanks to the easing of restrictions as vaccines roll out and strong growth in its digital business.

For example, during the six months ended 31 March, the company reported a normalised net profit after tax (NPAT) of $362.2 million. This was an increase of 18.4% on the prior corresponding period. In respect to its revenue, almost 80% of it was derived from recurring sources during the period. This gives it a firm foundation to build on in the coming years.

Analysts at Citi remains positive on the company. The broker currently has a buy rating and $46.00 price target on its shares.

Goodman Group (ASX: GMG)

Another ASX 200 share to look at is Goodman Group. It is a global property group that owns, develops and manages industrial real estate including logistics and industrial facilities, warehouses, and business parks.

Goodman has been growing at a solid rate over the last decade thanks to its high quality portfolio. Over the long term, management has curated its portfolio that gives Goodman exposure to industries benefiting from structural tailwinds. These include areas such as online, logistics, food, consumer goods, and the digital economy.

Positively, with an occupancy rate of 98%, rental income growing nicely, and its development work in progress worth $9.6 billion, the future is looking very positive.

Credit Suisse appears confident in its future. Last week the broker retained its outperform rating and lifted its price target to $24.15. It believes Goodman can deliver above industry earnings growth over the coming years.

The post 2 top ASX 200 shares that could be buys in August appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro 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 Anson Resources Ltd (ASX: ASN) share price has jumped into the green during today’s session. At the time of writing, Anson shares are swapping hands for 8.4 cents, a gain of 12%.

Today’s gain comes as Anson announced a key update to its Paradox brine project to the market.

Quick refresher on Anson Resources

Anson is a minerals exploration company that has particular interests in lithium, zinc, lead, and gold assets, among a list of other minerals.

It has several projects dotted around Australia and abroad, such as the Paradox brine project in Utah in the United States, and the Bull nickel-copper-PGE project in Western Australia.

Anson has a market capitalisation of $67 million at the time of writing.

What did Anson announce?

Anson revealed it had entered into a collaboration with TETRA Technologies at the Paradox brine project.

The Paradox brine project is a collection of claims and leases owned by the US and Utah governments, coupled with other local municipality agreements.

Henceforth, Anson confirmed the pair had signed a memorandum of understanding (MOU) to progress development at the site, including potential investment by TETRA.

The MOU effectively establishes a “framework of discussing options to work together” in order to “jointly develop” the Paradox site.

Both parties can now “negotiate an off-take agreement”, in addition to the economics of TETRA’s “patented process technology”.

TETRA is a “global leader in the production of bromine derivative products”, according to Anson. These products are used in “a number of applications including oilfield completion services and zinc-bromide energy storage batteries”.

Investors seem to have embellished the collaboration and have immediately rewarded Anson shares as a result of the news.

Anson Resources share price snapshot

The Anson Resources share price has delivered outsized returns over the year to date, posting a return of 178% since January 1.

This extends the previous 12 month’s return of 317%, which has far outpaced the broad index. The S&P / ASX 200 Index (ASX: XJO) has seen a return of about 26% over the same time.

The post Anson Resources (ASX:ASN) share price leaps 12% on US project news appeared first on The Motley Fool Australia.

More reading

• Leading broker tips strong year ahead for 29Metals (ASX:29M) share price
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• Why the Galaxy Resources (ASX:GXY) share price hit a 52 week high
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• Leading brokers name 3 ASX shares to sell today

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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A leading broker has put their weight behind the 29Metals Ltd (ASX: 29M) share price to outperform this year.

According to a recent note from Morgan Stanley, shares in the miner are poised to rise.

Let’s take a look at what analysts had to say about the 29Metals share price.

29Metals share price offering ‘compelling value’

Analysts at noted broker Morgan Stanley have lauded the potential latent in the 29Metals share price.

An article published in the Australian Financial Review earlier today elaborated on the note published by the broker.

According to the article, Morgan Stanley expects the 29Metals share price to rise sharply this year. Analysts from the broker noted that they perceive ‘compelling value’ in the share price of the copper miner.

The broker noted that 29Metals was in a tier 1 jurisdiction with plenty of room for diversification. Analysts cited the company’s Capricorn Copper and Golden Grove producing assets.

For 2022, analysts expect 58% of revenue from 29Metals to be generated from copper mining. Zinc (24%), lead (27%) and precious metals (16%) are expected to also contribute to the company’s bottom line.  

Analyst cited that the significant diversification in revenue generation has 29Metals poised for further growth.

In the article, an analyst from the broker stated;

“Although we acknowledge that 29Metal’s assets are old and high on cost, there is still significant margin to the current copper price and plans outlined by management indicate significant potential for low capex brownfield production growth if the asset strategy can be delivered, in-turn improving C1 costs from $US1.82 a pound in CY21 to $US0.94 a pound in CY25,”.

Analysts acknowledged that there were risks around mining rates and life-of-mine plans. However, the broker noted that risk-reward was favourable for the 29Metlas share price.

Morgan Stanley initiated coverage on 29Metals with an outperform rating for the company and a share price target of $3.10. At that target price, the company would be worth $1.49 billion.

Snapshot of the 29Metals share price

29Metals is a miner that owns copper projects in Australia and South America. Most of the company’s revenue is generated from its Golden Grove mine in Western Australia.

The 29Metals share price listed on the ASX at the start of July at $2 per share, 55% ahead of its listing price.

Shares in the miner recently received a boost after releasing its quarterly report.

At the time of writing, the 29Metals share price is trading near its record high of $2.42.  

The post Leading broker tips strong year ahead for 29Metals (ASX:29M) share price appeared first on The Motley Fool Australia.

More reading

• What’s up with the 29Metals (ASX:29M) share price today?
• Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO

Motley Fool contributor Nikhil Gangaram 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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