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The Nuix Ltd (ASX: NXL) share price finished in the green amid news Macquarie Group Ltd (ASX: MQG) has determined the tech company’s initial public offering (IPO) was above board.  

While Macquarie has reportedly found no signs of wrongdoing, Nuix’s IPO is still the subject of an Australian Investments and Securities Commission (ASIC) investigation.

However, the market seems to have had some of its concerns eased. The Nuix share price gained 1.2% today to close at $2.53.

Let’s take a closer look at today’s Nuix news.

Nothing to see here

The Nuix share price climbed amid news Macquarie’s IPO team has cleared it of any obvious wrongdoing.

According to the Australian Financial Review, Macquarie’s chair Peter Warne spoke to media before the group’s annual general meeting today.  

He apparently said Macquarie’s IPO team have reviewed Nuix’s prospectus and float, finding nothing sinister.

Macquarie was Nuix’s backer during the tech company’s ASX debut. Macquarie was also Nuix’s biggest shareholder, holding around 70% of the tech company before its float. Today, Macquarie holds around 30% of Nuix’s shares.

Macquarie’s CEO Shemara Wikramanayake was quoted by the publication as saying:

At the time of the IPO, we all had no reason to believe that the prospectus forecasts would not be achieved…Circumstances appear to have changed quickly after listing.

However, the group is said to be planning to keep a hold of its stake in Nuix, despite ASIC’s ongoing investigation into its float.

ASIC is also investigating Nuix’s former chief financial officer Stephen Doyle, along with his brother and father. The 3 are under the microscope amid claims of insider trading.

According to court papers, ASIC believes Doyle may have tipped off his brother about Nuix’s February downgrade. Doyle’s brother is accused of then selling 1.8 million Nuix shares to avoid a loss of more than $5.7 million.

Nuix share price snapshot

Despite today’s gains, the Nuix share price is still firmly in the red.

Right now, its shares are trading for 68% less than they were at Nuix’s float in December.

The company has a market capitalisation of around $793 million, with approximately 317 million shares outstanding.

The post Nuix (ASX:NXL) share price rises on Macquarie’s IPO review verdict appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• Macquarie (ASX:MQG) share price lower after Q1 and dividend update
• Macquarie (ASX:MQG) share price edges lower despite $7b US fund raise
• Is the Zip (ASX:Z1P) share price a buy or a sell?
• The Nuix (ASX:NXL) share price is falling today. Here’s why

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 recommended Nuix Pty Ltd. 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 Wisr Ltd (ASX: WZR) share price is flying high after the company released a trading update for the June quarter.

By market close, shares in the non-bank consumer lender were trading at 30.5 cents each – up 9.09%. Competitor MoneyMe Ltd (ASX: MME) ended the day 1.46% higher by comparison.

Let’s take a closer look at today’s news.

The Wisr share price is soaring

In a statement to the ASX, Wisr gave an update on its cash position and activities during the last quarter. Overall, the company experienced a cash inflow of approximately $59 million for a total cash position of $92.4 million.

The main contributor to this position was $155 million in financing activities – including $55 million from a capital raise and $105 million debt facility.

Operations saw a cash outflow of $868,000. That’s despite a “record” $9.7 million in revenue for the quarter – an increase of 234% on the prior corresponding period and 29% on the previous quarter. The company also says the month of June was cash positive.

Wisr loaned $95.1 million to customers in the quarter.

Management commentary

Wisr CEO Anthony Nates commented

It’s an incredible credit to the Wisr team for delivering 20 consecutive quarters of growth and a maiden cash flow break-even month on the back of an exceptional 234% revenue growth, compared to the same period last year. This milestone result should give the market confidence around our market leading unit economics and our ability to deliver a highly profitable business as we continue to scale.

Nates said Wisr had taken “prudent steps” to strengthen the balance sheet with the recent equity raise that was supported by Goldman Sachs.

Combined with our inaugural $225 million ABS issue, these two transactions put Wisr in an incredibly strong position to extend our technology advantage and aggressively grow lending market share in the years ahead.

Wisr share price snapshot

Over the past 12 months, the Wisr share price has increased 20%. The S&P/ASX 200 Index (ASX: XJO) is up 23.4% over the same time. Year-to-date, however, Wisr shares are 58% higher.

The company has a market capitalisation of $362 million.

The post Why the Wisr (ASX:WZR) share price rocketed 9% today appeared first on The Motley Fool Australia.

More reading

• Wisr (ASX:WZR) share price remains flat despite positive update
• Wisr (ASX:WZR) share price up 3% on another record quarterly result

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 EcoGraf Ltd (ASX: EGR) share price has surged more than 14% higher in today’s trading session.

Investors are jumping for shares in the battery anode manufacturer after EcoGraf released a funding update earlier today.

At market close, the EcoGraf share price is 8.82% higher and trading at 74 cents. The EcoGraf share price was up more than 14% earlier today after hitting an intra-day high of 78 cents.

Let’s take a look at what EcoGraf announced.

EcoGraf share price gets boost from funding update

Earlier today, EcoGraf provided an update on funding arrangements for the development and expansion of its battery anode material facility in Western Australia.

According to the update, the Australian Government’s export credit agency is poised to lend EcoGraf US$35 million to fund the facility.

EcoGraf noted that the company will fund the initial phase of the development using its existing cash reserves.

The company’s cash reserves were topped up following a $54.6 million institutional placement earlier this year.

EcoGraf also highlighted that the expansion phase would be financed through a combination of cash reserves and loan funding.

The proposed facility is slated to produce high purity battery anode material using the company’s proprietary EcoGraf HFfree purification process.

EcoGraf has estimated a construction timeframe for the facility to be around 11 months. Following construction, the company plans to undertake a 12-month expansion program.

More on EcoGraf

EcoGraf is a diversified battery anode material company that aims to produce high purity graphite products for the lithium-ion battery market.

The company’s flagship HFfree purification technology enables an environmentally responsible manufacturing process.

In addition, its facility in Western Australia EcoGraf is also in the process of developing its Epanko Graphite Project in Tanzania.

EcoGraf made headlines earlier this week after releasing results for its recycled lithium-ion battery anode.

The company reported strong results from the purification process in line with major lithium-ion battery manufacturer specifications.

Snapshot of the EcoGraf share price

The EcoGraf share price has had a volatile performance in 2021.

Shares in the battery material company opened the year at around 16.5 cents, before hitting a high of $1.07 in mid-February.

Despite the wide trading range and volatility, shares in EcoGraf are trading more than 318% higher for the year.

The post EcoGraf (ASX:EGR) share price flying 14% higher on funding update appeared first on The Motley Fool Australia.

More reading

• 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
• Why the Novonix (ASX:NVX) share price rocketed 16% today

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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The Qantas Airways Limited (ASX: QAN) share price closed lower today after it announced it will soon require Australians travelling internationally to hold a ‘health passport’.

The airline will be working with the International Air Transport Association (IATA) to create a digital health pass. Future passengers on Qantas and Jetstar international flights will be required to use the pass.

The Qantas share price finished today’s session at $4.62. That’s 0.43% lower than its closing price yesterday.

Let’s take a closer look at today’s news from Qantas.

Digital health pass for overseas travel

The Qantas share price suffered today despite the airline announcing a new safety measure for future international travellers.

The IATA Travel Pass will let airlines, border staff, and health officials verify travellers’ COVID-19 test results and vaccination status.

Additionally, the pass will check whether a traveller’s vaccination and COVID-19 status will pass conditions set by specific flights and borders.  

Qantas said its pass will work well within the Australian Government’s four-phase national COVID-19 response plan.

The second phase of the government’s plan might allow more vaccinated Australians to return from overseas. The third phase could lift all restrictions on Australians looking to leave the country.  

Qantas pushed back the resumption of its international flights to late December 2021 in May. The Qantas share price sank 5.5% over the 2 days following the announcement.

Qantas also mentioned that the United Kingdom, United States, and Canada require proof of vaccination to enter without quarantining.

Commentary from management

Qantas’ chief customer officer, Stephanie Tully commented:

A digital health pass will connect customers with COVID testing facilities, health authorities and airlines, and ultimately enable the opening of more travel bubbles and borders.

The IATA Travel Pass will allow travellers to have their COVID test results and vaccine information verified securely, which will be their green light to fly internationally with us.

Qantas share price snapshot

This year hasn’t been a great one for the Qantas share price.

It is currently 5.9% lower than it was at the start of the year. However, it has gained 37.5% since this time last year.

The post Qantas (ASX:QAN) share price closes lower after ‘digital health pass’ news appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price falls amid news of $500m land sale
• Is this why the Qantas (ASX:QAN) share price is struggling today?
• 3 long-term trends ASX share investors can buy into
• What is the outlook for the Qantas (ASX:QAN) share price?
• 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 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 Vulcan Energy Resources Ltd (ASX: VUL) share price was on fire today, finishing the session up 9.74% at $9.80.

The surge in Vulcan’s share price comes after the company released its quarterly activities report just after 1pm today.

Let’s take a closer look at what the report entails.

A bit more on Vulcan Energy

Vulcan Energy has interests in the exploration and development of copper-zinc and lithium supply solutions to the European market.

The company’s principal interest is in Norway, although it acquired the Vulcan Lithium Project, which is located in Germany.

As a result, it claims to be the “EU’s largest lithium resource”. Vulcan has a market capitalisation of $971 million at the time of writing.

Vulcan’s quarterly results

This quarter, Vulcan signed a “binding lithium offtake agreement” with LG Energy Solution to supply “10,000 metric tonnes per year of lithium hydroxide” into the coming periods.

It also commissioned a direct lithium extraction (DLE) plant through its “in-house engineering team”.

The DLE plant is now “successfully operating with (more than) >90% recoveries”, demonstrating lithium extraction from geothermal brine.

In addition, it also finalised the spinoff and initial public offering (IPO) of its “Scandinavian battery metals projects” into a new entity known as Kuniko Limited.

It raised $7.89 million via the offering, and established Kuniko as a standalone “zero carbon copper, nickel, and cobalt company”.

Moreover, a new exploration licence granted in the Upper Rhine Valley, for after “(the) June 2021 quarter”, came through this quarter also.

Additional takeouts from the report

Vulcan also reported a number of sustainability and governance advancements in the report.

To illustrate, it signed a binding agreement to acquire 100% of Global Engineering and Consulting GmbH, which is a “geothermal surface consultancy company”.

Additionally, the company was also admitted to the “Global Battery Alliance”, a consortium of 70 members “working towards a sustainable battery value chain globally”.

Vulcan was also certified as “carbon neutral” by Climate Active for Australian operations. This aligns with the company’s goal of becoming “the world’s first zero carbon lithium project”.

Vulcan Energy share price snapshot

The Vulcan Energy share price has produced outsized returns over the year to date, posting a return of 256% since January 1.

This extends the previous 12 month’s mammoth return of 1,992%. That sees Vulcan sit at the tip of the spear with respect to the constituent of ASX-listed securities.

These returns have far outpaced the S&P / ASX 200 Index (ASX: XJO)’s return of 23% over the past year.

Vulcan shares have posted a return of 27% over the previous month alone.

The post Vulcan Energy (ASX:VUL) share price surges 10% on quarterly update appeared first on The Motley Fool Australia.

More reading

• Vulcan (ASX:VUL) share price on watch following spin-off IPO update
• Why CSL, Humm, IntelliHR, & Vulcan shares are pushing higher
• Why the Vulcan (ASX:VUL) share price is jumping 9% on Monday
• Why Flight Centre, PolyNovo, Vulcan, & Zip shares are sinking
• Short-lived $10 party for the Vulcan Energy (ASX:VUL) share price

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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Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $6.00 price target on this infant formula company’s shares. Citi has been looking through recent peer updates and believes they indicate that the daigou channel will remain challenged in the short term. And while the a2 Milk share price has pulled back recently, the broker is sticking with its sell rating. This is due to its belief that there are risks to medium- and long-term margins due to an increased focus on the China offline channel. The A2 Milk share price is trading at $6.16 today.

IGO Ltd (ASX: IGO)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $6.40 price target on this nickel producer’s shares. This follows the release of the company’s fourth quarter update. While Morgan Stanley acknowledges that IGO had a solid finish to the year, it was disappointed with its guidance for FY 2022. It notes that its production guidance is softer than expected and its costs are higher than predicted. The IGO share price is currently fetching $8.98.

Rio Tinto Limited (ASX: RIO)

Analysts at UBS have retained their sell rating and $104.00 price target on this mining giant’s shares. This follows the release of Rio Tinto’s half year results, which fell a touch short of the broker’s expectations. Overall, the broker believes the risks are to the downside due to its belief that the iron ore price will pull back sharply over the next 12 months. The Rio Tinto share price was trading at $134.17 on Thursday.

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

More reading

• The ASX 200’s new record high is flimsier than you might think. Here’s why
• Why a2 Milk, Airtasker, IRESS, & Regis shares are charging higher
• Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak?
• Why is the A2 Milk (ASX:A2M) share price up 5% on Thursday?
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Bruce Jackson.

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The big news on the ASX share market this July has been the series of new all-time record highs that the S&P/ASX 200 Index (ASX: XJO) has been regularly hitting.

Having first crossed 7,300 points and then 7,400 points for the first time ever back in June, July has seen the ASX 200 consolidate these gains, and push as high as 7,443 points.

Whilst this is an event that will probably be celebrated by most ASX 200 investors, I think it merits a deeper dive into what’s been pushing the index up so high recently.

Well, it’s not the big four banks, that’s for sure. Take Commonwealth Bank of Australia (ASX: CBA). After hitting $100 a share for the first time ever back in May, CBA shares have gone backwards over July, falling by roughly 0.42% over the month so far.

The other 3 major ASX banks have fared even worse. Westpac Banking Corp (ASX: WBC) takes the crown of thorns, with a 5% reversal since 30 June.

Since the ASX 200 is dominated by these four banking shares (the ASX 200’s first, fourth, fifth and sixth companies respectively by market capitalisation), the recent gains must be coming from somewhere else.

CSL Limited (ASX: CSL) perhaps? CSL is the ASX 200’s third-largest company. Sure, it’s put on 2.13% since 30 June. But that’s not enough to counterbalance the ASX banks.

That leaves ASX resources shares like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). These are the ASX 200’s second and tenth-largest companies. And they have been on fire lately.

BHP and other ASX miners push up the ASX 200

BHP shares are currently at a record high, having climbed an astonishing 9.9% since 30 June. Rio shares have fared pretty well too, with a 6.3% gain.

We have to mention Fortescue Metals Group Limited (ASX: FMG) too, which is the ASX 200’s twelfth largest company. It’s put on a very impressive 12.25% since 30 June.

Why have these miners been enjoying such robust gains? We can probably thank robust iron ore prices, as well as a falling Aussie dollar.

Rio’s monster dividend that was announced yesterday probably didn’t hurt either.

And there you have it, the stars of the share market’s July show. Long story short, investors can thank these companies for the record high that the ASX 200 is trading at today.

But this also exposes a potential weakness in the surging ASX share market. If these companies were to drop back to even where they were a month ago, it would be fairly deleterious to the ASX 200’s standing as a whole.

It’s a very different, and dare I say flimsier, situation than if the index’s performance was supported by an equally rising tide with gains across all of the ASX blue chips, rather than just one sector.

Something to keep in mind for anyone exposed to the ASX 200 right now.

The post The ASX 200’s new record high is flimsier than you might think. Here’s why appeared first on The Motley Fool Australia.

More reading

• These are the latest 3 ASX shares to be downgraded by brokers
• Here’s why the Zip Co (ASX:Z1P) share price is leaping 5% today
• Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak?
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• Fortescue (ASX:FMG) share price rallies 3% to record high after quarterly results

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. At the time of writing, the benchmark index is up 0.45% to 7,413.6 points.

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

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price is down 7% to 19.5 cents. This follows the release of the lithium explorer’s quarterly update this morning. Investors appear concerned with AVZ Minerals’ weakening balance sheet, which could require a capital injection in the very near future. The company ended the period with cash of $2.85 million, down from just under $6 million three months earlier.

Imugene Limited (ASX: IMU)

The Imugene share price has sunk 10% to 29.7 cents after returning from a trading halt. This morning the biotech company announced the completion of a $90 million institutional placement. The company raised the funds at a 9.1% discount of 30 cents per new share. The company is now seeking to raise a further $5 million from retail investors at the same price. The proceeds will be used to fund Imugene’s clinical trial pipeline through to the end of 2025.

Pointerra Ltd (ASX: 3DP)

The Pointerra share price has fallen 10% to 42.7 cents. This follows the release of a quarterly update from the 3D geospatial data technology company. Pointerra reported a 24% quarterly increase in annual contract value (ACV) to US$9.8 million over the three months ended 29 July. Investors appear to have been expecting much stronger growth from the company.

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price is down 8% to 52 cents. This follows the release of a disappointing second quarter update by the gold miner. That update revealed weaker production, higher costs, and softer sales. In light of its poor performance, the company has downgraded its full year guidance.

The post Why AVZ Minerals, Imugene, Pointerra, & Resolute shares are dropping appeared first on The Motley Fool Australia.

More reading

• What’s happening with the Pointerra (ASX:3DP) share price today?
• Capital keeps flowing into ASX Biotech shares in 2021
• Why the Resolute Mining (ASX:RSG) share price is crashing 8% today
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• Why BARD1, Imugene, Northern Star, & Silver Lake shares are sinking

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 Pointerra Limited. The Motley Fool Australia has recommended Pointerra 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 Bellevue Gold Ltd (ASX: BLG) share price has walked through today’s session in the green, hitting an intraday high of 99.5 cents.

Today’s gain comes as the company released its quarterly results before the market open.

Let’s comb over Bellevue’s results in a bit finer detail.

A quick recap on Bellevue Gold

Bellevue Gold is in the gold exploration business. It primarily engages in the exploration and evaluation of precious metals in Australia.

Its flagship interest is the Bellevue Gold project, but it also has interests in the South Yandal gold project.

At the time of writing, Bellevue Gold has a market capitalisation of $815 million.

Bellevue’s quarterly results

The company outlined a raft of progress points achieved throughout the quarter in its report.

Bellevue saw global resources increase to 3 million ounces (Moz), a 25% increase from the “stage 1 feasibility study”.

Indicated resources also grew 34% from the study to 1.4Moz. This will “form the basis of the stage 2 feasibility study” alongside an “upgrade to the 690 thousand ounce maiden ore reserve from stage 1”.

Recall that the stage 1 feasibility study forecasted Bellevue will “generate $1.6 billion in [earnings before interest, tax, depreciation and amortisation] EBITDA” over the life of the mine.

Moreover, the stage 1 study estimated that the company will generate an “average free cash flow of $190 million a year, pre-tax” when assuming a $2,300/ounce realised gold price.

Back to the quarter, Bellevue also recognised a “non-binding debt” offer of up to $289 million that came from “12 leading domestic and offshore financial institutions”. It did not specify which institutions were included on the list in the report.

Additionally, its global resource has demonstrated a run-rate of “~70,000 ounces per month…since the discovery hole in November 2017”.

Additional takeouts from the report

The company established a “second underground diamond rig” this quarter.

Bellevue states this is garnering a “substantial reduction in cost” and permitting “further exploration into the Deacon corridor”.

Regarding progress this quarter, the company stated:

The robust nature of the Bellevue Lode Resource has also been highlighted with exceptional grade control results received from early grade control drilling. The Company continues to invest in drilling to support Resource growth, further Resource conversion and, importantly, grade control, well ahead of the mine schedule.

Investors seem to have favoured the announcement and have pushed the Bellevue Gold share price into the green since the start of trading.

Bellevue Gold shares are now exchanging hands at 98.75 cents apiece, a 3.7% gain from the market open.

Bellevue Gold share price snapshot

The Bellevue Gold share price has had a choppy year to date, posting a loss of 12% since January 1. This extends the previous 12 month’s loss of 8.4%.

Both of these returns have lagged the S&P / ASX 200 Index (ASX: XJO)’s return of ~23% over the past year.

The post Bellevue (ASX:BGL) share price leaps on 25% resource growth appeared first on The Motley Fool Australia.

More reading

• Here’s why the Bellevue Gold (ASX:BGL) share price is higher 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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The market may be testing record highs but it isn’t all good news for investors as brokers have just downgraded these three ASX shares.

The S&P/ASX 200 Index (Index:^AXJO) jumped 0.4% in the last hour of trade and is within striking distance to its all-time high.

But some ASX shares are being left behind, like the National Australia Bank Ltd. (ASX: NAB) share price.

ASX shares copping a downgrade

The NAB share price shed 0.7% to $25.72 at the time of writing. It doesn’t help that Bell Potter downgraded the shares ahead of NAB’s quarterly results next month.

It’s not that the broker is expecting it to be a disaster. If anything, NAB’s outlook for the current financial year is positive thanks to falling impairment charges and cost cutting.

“On the other hand, there was minimal change to net operating income in every year,” said the broker.

“The key difference lies in FY21e with its 66% jump in cash earnings, and this falls to 5% in FY24e and onwards.”

Bell Potter cut its recommendation on the NAB share price to “hold” from “buy” with a 12-month price target of $27.50 a share.

Production risk triggers downgrade for this ASX share

Another ASX share that is on the wrong side of breakeven today is the St Barbara Ltd (ASX: SBM) share price.

The gold miner lost 1.7% to $1.72 in late trade after Citigroup downgraded the St Barbara share price to “neutral/high risk” from “buy/high risk” following the quarterly production update.

Lack of confidence

“FY22 prodn guidance relying heavily on replicating JunQ performance at Gwalia, raising concerns given past poor performance,” said Citi.

“Gwalia must consistently replicate JunQ to achieve bottom guidance 180koz. Costs to remain high $1710-1860/oz vs FY21a $1616/oz.”

The broker’s belief that the gold price has past its peak also isn’t helping. Citi’s 12-month price target on the St Barbara share price is $1.75 a share.

Gold’s outlook losing its shine

Talking about gold, Macquarie Group Ltd (ASX: MQG) cut its rating on the West African Resources Ltd (ASX: WAF) share price to “neutral” with a 12-month price target of $1.15 a share.

The broker noted that gold prices failed to rally even as the US 10-year inflation adjusted government bond (US 10y TIPS) yield hit new lows recently.

“US 10y TIPS have made new lows around -1.15% but gold is still failing to rally, trading around the [US]$1,800/oz mark,” said Macquarie.

“Without either a reappraisal of inflation or materially negative turn in the path of the virus (e.g. mutation which rendered current vaccines ineffectual), they also struggle to see gold building significant momentum.”

Against this backdrop and the fact that the West African Resources share price has outperformed recently, the broker decided that there isn’t enough upside left for the ASX miner.

The post These are the latest 3 ASX shares to be downgraded by brokers appeared first on The Motley Fool Australia.

More reading

• Here’s why the Zip Co (ASX:Z1P) share price is leaping 5% today
• Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak?
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?
• Yes, share markets are high. But don’t sell

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