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The Newcrest Mining Ltd (ASX: NCM) share price is in the red today despite the company releasing a quarterly report.

Newcrest shares are sliding 0.89% to $28.85 at the time of writing. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is rising 0.08% today. Gold meanwhile is up 0.21% to US$2,000.50, according to CNBC.

Let’s take a look at what Newcrest reported to the market.

What did Newcrest report?

Highlights of the Newcrest FY23 third quarter report include:

• Gold production fell 0.49% to 509,637 ounces, down from 512,130 ounces in the December quarter
• Copper production slid 9.9% to 31,148 tonnes, down from 34,564 tonnes in the previous quarter
• Silver production lifted 3.1% from 303,537 in the previous quarter to 312,970 in the March quarter
• Realised gold price rose 9.9% to $1,860 per ounce, up from $1,693 in the previous quarter
• Realised copper price lifted 9.6% to $8,841 a tonne, up from 8,069 per tonne in the last quarter
• All-In Sustaining Cost (AISC) of $1,012 per ounce, down 7%, with an AISC margin of $837 an ounce

Gold production improved at the Brucejack, Lihir and Fruta del Norte mines. However, this was offset by less production at Cadia, Telfer and Red Chris.

Underpinning the higher gold production at Lihir was higher mill throughput and rainfall, along with higher gold head grade.

Gold production at the Brucejack mine rose amid operations returning to full capacity.

Gold production at Cadia fell due to lower mill throughput compared to the previous quarter.

Newcrest said it is on track to achieve its full-year group production guidance in FY23. The company is forecasting gold and copper production will lift in the June 2023 quarter.

Injury rates at the mine fell during the quarter.

Management commentary

Commenting on the results, Newcrest interim CEO Sherry Duhe said:

We continued to deliver on our strategy in 2023, with our pipeline of high-quality organic gold and copper growth projects marking a number of important milestones.

Our third quarter performance has positioned us well to achieve our Group FY23 production guidance.

We expect gold and copper production to increase in the June quarter and remain on track to deliver a strong FY23 result, supported by continued momentum in gold and copper prices.

Newcrest share price snapshot

Newcrest shares have risen 6.93% in the last year.

This ASX 200 gold share has a market cap of about $25.8 billion based on the current share price.

The post Newcrest share price slides amid lower gold production appeared first on The Motley Fool Australia.

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More reading

• Better ASX gold share to buy now: Newcrest vs. Northern Star
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Friday
• I’d buy and hold these 2 ASX shares to cash in on a surging gold price
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Monica O’Shea 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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The Northern Star Resources Ltd (ASX: NST) share price is tumbling on the release of the company’s quarterly production update.

Right now, stock in the S&P/ASX 200 Index (ASX: XJO) gold producer is down 1.81%, trading at $13.54.

Northern Star share price falls on weak quarterly production

Here are the key takeaways from the company’s activities over the three months to 31 March:

• Sold around 363,000 ounces of gold – a 10% quarter-on-quarter (QoQ) fall
• All-in sustaining cost (AISC) of $1,813 an ounce – up 4% QoQ  
• Realised an average price of $2,696 per ounce – a 6% improvement QoQ
• Revenue from gold came to $979 million – down 4% QoQ
• Ended the period with $102 million of net cash

What else happened last quarter?

Northern Star’s production came in lower-than-expected last quarter.

The drop was driven by a three-week halt in works at its Alaskan Pogo operation. The company was forced to stop production as it repaired damage to a ball mill motor – originally expected to take six weeks.

Meanwhile, its KCGM operation underwent shovel maintenance.

What did management say?

Northern Star managing director Stuart Tonkin commented on the update weighing on the company’s share price today, saying:

This quarter was a challenging one for Northern Star but we have emerged with positive momentum, and the prospect of improved production across the group, to remain on track for a strong finish to financial year 2023.

Northern Star was able to improve the AISC performance across most of our assets with total costs, in dollar terms, lower than in the previous quarter. Unit costs will reflect this effort on increasing production.

Navigating the current cost environment remains challenging despite the benefits of our size and scale as well as our internal contracting business – Northern Star Mining Services.

What’s next?

On that note, Northern Star upped its full-year cost guidance this morning. It now expects its AISC to come in between $1,730 and $1,760 an ounce – up from $1,630 to $1,690 per ounce.

Though, its production guidance remains unchanged at 1.56 million ounces to 1.68 million ounces.

Northern Star share price snapshot

Today’s tumble hasn’t been enough to send the Northern Star share price into the longer-term red.

The stock is still 22% higher than it was at the start of 2023. It has also risen 41% since this time last year.

For comparison, the ASX 200 has risen 5% year to date and has traded flat over the last 12 months.

The post Northern Star share price slumps as gold sales plunge 10% appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 gold shares leading the market today?
• Why Core Lithium, Kogan, Northern Star, and Pointsbet shares are storming higher
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• Better ASX gold share to buy now: Newcrest vs. Northern Star

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 Scott Phillips.

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Stock in S&P/ASX 200 Index (ASX: XJO) biopharma company Telix Pharmaceuticals Ltd (ASX: TLX) is in the red on news of a major artificial intelligence (AI) acquisition.

The developer of diagnostic and therapeutic radiopharmaceuticals has agreed to snap up Dedicaid ­– an AI-powered clinical decision support software platform (CDSS).

The Telix share price is slipping on the back of the announcement. It’s currently down 2.02%, trading at $10.18.

Let’s take a closer look at the acquisition the ASX 200 company’s chief scientist says is capable of “supercharging” its AI offering.

ASX 200 healthcare stock slips on AI acquisition

The Telix share price is falling after the company unveiled what could be a 2.2 million Euro ($3.7 million) acquisition.

Dedicaid – a spin-off of the Medical University of Vienna – is capable of generating indication-specific CDSS applications for use with positron emission tomography (PET) and other imaging methods.

It differs from other available AI solutions in its ability to predict outcomes like the severity of disease and the risk to a patient. It can even help inform treatment decisions.

That’s thanks to the automated machine learning (AutoML) engine powering the platform – effectively meaning it’s a “zero code” solution.

Thus, the time, cost, and level of expertise required to build, test, and validate new CDSS applications is greatly reduced. It also smooths development and regulatory pathways.

The CDSS applications able to be generated through the platform are expected to complement Telix’s radiopharmaceutical pipeline.

Telix chief scientist Dr Michael Wheatcroft commented on the news driving the ASX 200 stock, saying:

This acquisition provides Telix with a powerful AI development platform that greatly enhances our ability to rapidly generate new applications from clinical imaging data.

These applications have the potential to assist clinicians in predicting disease progression and treatment response, thus supercharging and differentiating Telix’s AI offering.

It is also intrinsically aligned to the philosophy behind theranostics – which is to use the insights from medical imaging to inform and guide an optimal treatment pathway.

Telix will buy Dedicaid for 1.1 million Euro ($1.8 million) – paid in scrip. A further 1.1 million Euro earn-out is subject to United States regulatory approval.

The company is aiming to finalise validation activities and regulatory submissions for the AI platform this year.

Telix share price snapshot

The Telix Pharmaceuticals share price has taken off in 2023.

The stock is currently around 41% higher than it was at the start of the year. It’s also gained 136% since this time last year.

For comparison, the ASX 200 has risen 5% year to date and 1% over the last 12 months.

The post Guess which ASX 200 healthcare stock just made a ‘powerful’ AI acquisition 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 3 most heavily traded ASX 200 shares on Wednesday
• ASX 200 trims losses on latest inflation news
• First Republic Bank shares just crashed 50%. Here’s how ASX 200 bank stocks are responding
• Mineral Resources share price tumbles 9% despite record quarterly lithium shipments

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 Scott Phillips.

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The Blackmores Ltd (ASX: BKL) share price just leapt 22.1%.

Shares in the S&P/ASX 200 Index (ASX: XJO) vitamin and health supplement manufacturer closed yesterday trading for $76.79. Shares are currently swapping hands for $93.80 apiece.

This comes amid news of a $1.9 billion takeover bid.

What’s all this about a takeover offer?

The Blackmores share price is heading for the sky after the company reported it has entered into a scheme implementation deed with Kirin Holdings Company.

The scheme would see Kirin acquire 100% of Blackmores’ issued share capital for $95 per share, less any special dividend declared prior to its implementation.

That’s 24% higher than the Blackmores share price closed at yesterday, giving you some idea why shares are leaping higher today.

With 19.45 million shares outstanding, the deal values Blackmores at $1.85 billion.

Should the takeover proceed, the Blackmores board said it will declare a fully franked special dividend of $3.34 per share, subject to availability of franking credits. Management expects shareholders will benefit from franking credits of $1.43 per share attached to that special dividend.

The Blackmores board also unanimously recommended the scheme, subject to certain standard conditions.

Marcus Blackmore is Blackmores’ largest shareholder, with some 18% of the company’s shares. He has agreed to vote in favour of the scheme unless otherwise directed by Kirin.

“The Kirin scheme represents an attractive, all-cash transaction,” Blackmores chair, Wendy Stops, said.

Stops added, “The Blackmores board believes the agreed scheme consideration represents appropriate long-term value for the company and an attractive outcome for Blackmores shareholders.”

Commenting on the takeover proposal sending the Blackmores share price soaring today, CEO Alastair Symington said:

Today is an important day in the history of Blackmores… Importantly it also confirms the significant opportunity that lies ahead for our employees and other key stakeholders of Blackmores as both companies come together to combine their focus on growing Kirin’s health science business across the world.

Symington added that the two companies will together have a larger platform “to further leverage the Blackmores brand, accelerate penetration into high growth Asian markets, and expand its presence into new geographies”.

Blackmores shareholders don’t need to take any action yet at this time.

Management expects a court-convened shareholder meeting to be held in July 2023.

Blackmores share price snapshot

As you can see in the chart below, the Blackmores share price was already a solid performer over the past year before today’s big boost.

With that intraday lift factored in, Blackmores shares are now up 33% over the past 12 months.

The post Blackmores share price rockets 22% on $1.9 billion takeover bid appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Bernd Struben 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 Blackmores. 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 a frightening prospect for investors, more than one expert seems to think share markets are headed for a massive correction in the coming weeks.

DeVere Group chief executive Nigel Green has warned everyone to brace for a 10% dip, citing the likelihood of central banks in the US, UK, and Europe raising interest rates in May.

“This is likely to cause jitters in the market as some investors, concerned about short-term profits, will move into panic-selling mode,” he said.

“Furthermore, they will have legitimate concerns that further rate hikes now – when monetary policy time lags are notoriously long – could steer economies into a recession.”

JP Morgan Chase & Co analysts warned of the same danger in a memo to clients, forecasting a potential 14% drop over the next few weeks.

The S&P 500 Index (SP: .INX) closed Thursday morning Australian time at 4,055.99 points.

The JP Morgan team predicted the index could build negative momentum as it trades in the 4,010 to 4,040 range.

“We think it eventually breaks medium-term support near 3,760 and extends to retest the 3,491 October 2022 low, before setting a low for the bear cycle.”

A time bomb is about to blow 

Both US and S&P/ASX 200 Index (ASX: XJO) shares have rallied over the past month, which Green says points to returning confidence in earnings growth.

But unfortunately, bond markets are contradicting this optimism with inverted yield curves.

“This reflects fear that the final rounds of interest rate hikes, from the major central banks this spring and summer, may tip economies into recession.”

Green is uneasy at the situation, which makes him think markets are now in a “calm before the storm” phase.

“This huge disconnect between stocks and bonds suggests that investors should brace themselves for significant volatility in global financial markets over the next few weeks,” he said.

“We could see a 10% correction.”

For God’s sake, stop the pain

Green pleaded for central banks to give rate hikes a rest.

“Economists estimate interest rate changes take up to 18 months to have the full effect. This means monetary policymakers need to try and predict the state of the economy for up to 18 months ahead,” he said.

“With inflation seemingly having peaked, central banks are slowly winning the battle and officials now need to take their foot [off] the brake.”

One bright note for long-term investors, said Green, is that a massive market downfall could present a golden chance to buy up stocks for cheap.

“A market correction is a natural part of the market cycle and can present major buying opportunities for long-term investors who are willing to weather short-term volatility.”

The post ‘Panic selling’: Are stock markets about to have a 10% correction? appeared first on The Motley Fool Australia.

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More reading

• 2 huge reasons to avoid ASX dividend stocks
• How I’d invest $20k in ASX stocks today to target serious wealth
• Why the Macquarie share price could rise over 20% from here
• Which is the best ASX 200 bank share to buy right now?
• Morgans says ‘attractive buying opportunity’ coming for BHP shares

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. 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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ASX dividend stocks are known for paying attractive passive income through dividends. But, dividends are not guaranteed payments. I’m going to outline why there are two huge reasons to be cautious about ASX dividend shares.

Companies are only able to pay a dividend if they make a profit. It can take some businesses some time to be large enough to make a profit. Zip Co Ltd (ASX: ZIP) is still striving to be profitable despite being listed for a number of years.

It’s not easy to make a profit. Recessions can cause difficulties, while competition can harm margins and growth. ASX travel shares’ profit was smashed over the last few years.

Dividends can be cut

ASX dividend stocks may want to pay shareholders good passive income. But if profit falls then the board will have a tough decision to make.

If a business is committed to a particular dividend payout ratio, such as 50% or 75% of profit, then a fall in profit will certainly reduce the dividend payment.

We recently saw that in the BHP Group Ltd (ASX: BHP) half-year result, which showed a 32% fall in both attributable profit and earnings per share (EPS). This led to a 40% cut of the interim dividend per share of 90 cents per share. Some businesses have relatively consistent profits, while others (such as commodity businesses) can see significant changes.

A board of directors could also decide that the balance sheet isn’t healthy enough to pay out a lot of cash. If there is a lot of debt, it may make more sense to repay that debt now that interest rates are much higher.

But, that’s not the only reason investors may want to think twice about ASX dividend stocks.

Better to re-invest?

Some businesses like Commonwealth Bank of Australia (ASX: CBA) may have a particularly high dividend payout ratio because there’s not that much that the business can invest in to grow its core business.

But, a business like Berkshire Hathaway has shown what can happen if a company continues to re-invest in its operations rather than paying out a dividend.

A dividend payment may only be worth a dividend yield of 2% or 3% in an investor’s bank account from an ASX dividend stock. But, if a company retains the cash then it may be able to earn a 10% return or more on that cash. The stronger the company’s return on equity (ROE), the more sense it typically makes for a business to re-invest.

So, investors may do better overall by choosing businesses that are re-investing more of their profit.

Foolish takeaway

Of course, I’m not trying to say that all companies shouldn’t pay dividends.

We should expect cyclical businesses to pay cyclical dividends.

On the re-investment side of things, there won’t always be opportunities to invest in, and acquisitions can go wrong. Plus, for Aussies, it can be beneficial to unlock some of the franking credits. Dividends do make sense sometimes.

The post 2 huge reasons to avoid ASX dividend stocks appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20k in ASX stocks today to target serious wealth
• Why the Macquarie share price could rise over 20% from here
• Which is the best ASX 200 bank share to buy right now?
• Morgans says ‘attractive buying opportunity’ coming for BHP shares
• ‘Well placed for strong growth’: 3 ASX 200 shares that hit the spot right now

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway and Zip Co. The Motley Fool Australia has recommended Berkshire Hathaway. 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 ASX stocks I’m about to write about are compelling investments that can create strong investment returns, in my opinion. If I had $20,000, I’d invest in them.

I believe some businesses have the right characteristics to deliver outperformance in the market over the next five or ten years. That’s down to the management teams they have, the valuations they’re trading at and the industries they’re operating in.

With that in mind, these are three names I’d put $20,000 into.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is a relatively small, but quickly growing ASX retail share. It owns a group of “premium youth fashion brands” which includes Universal Store, THRILLS and Perfect Stranger. It currently has more than 90 physical stores. Its goal is to grow its brands, through both retail stores and wholesale businesses.

If there is an economic downturn, I think younger Australians may be less affected by the higher interest rate environment.

The first half of FY23 saw strong growth for the business – total sales increased 34.5%, underlying earnings before interest and tax (EBIT) grew by 43.2% and statutory net profit after tax (NPAT) jumped 31.7%.

I think the business is trading at very attractive valuation metrics to deliver strong outperformance over time. Commsec numbers put the Universal Store share price at 11 times FY23’s estimated earnings and 8 times FY25’s estimated earnings. In FY25, it could pay a grossed-up dividend yield of 10.6%.

The ASX stock looks cheap, it’s growing its store network, expanding its Perfect Stranger brand, benefiting from its increasing scale as well as from its new distribution centre.

Vaneck Morningstar Wide Moat ETF (ASX: MOAT)

This exchange-traded fund (ETF) is one of my favourites to invest in some shares. This ETF is offered by VanEck, with “a focus on quality US companies Morningstar believes possess sustainable competitive advantages, or ‘wide economic moats’”.

But, target companies need to be trading at attractive valuations, meaning they’re at a good price relative to Morningstar’s “estimate of fair value.”

Past performance is not a reliable indicator of future performance, but over the past three years, the Vaneck Morningstar Wide Moat ETF has returned a total of an average of 16.7% per annum.

The portfolio is regularly changing, but on 24 April 2023, the five biggest positions were Meta Platforms, Salesforce.com, Amazon.com, Fortinet and Microsoft.

The Vaneck Morningstar Wide Moat ETF has a very reasonable annual management fee of 0.49%.

I think it can deliver solid long-term returns.  

Brickworks Limited (ASX: BKW)

Brickworks is the largest brickmaker in Australia and one of the largest brickmakers in the northeast of the US. In Australia, Brickworks has a good position in pavers, masonry and stone, roofing and so on.

The ASX stock owns a large chunk of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares, the investment house. This investment could deliver a good mixture of dividend growth and capital growth, as it has done in the past, thanks to its diversified and growing portfolio.

What I’m particularly excited by are Brickworks’ industrial property assets. It has an interest in two property trusts, with a combined net asset value (NAV) of more than $2.2 billion. Brickworks has also noted that land held outside of the property trusts is held at “historical cost rather than current value”.

The property trusts are benefiting from market trends and strong customer demand, which is helping support the asset values despite the higher interest rates. The strong demand is driving the potential rental income higher.

There is substantial development land within Brickworks and the industrial property trust that can provide “significant further growth”.

The post How I’d invest $20k in ASX stocks today to target serious wealth appeared first on The Motley Fool Australia.

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More reading

• 5 dividend shares I think are among the safest on the ASX
• 5 things to watch on the ASX 200 on Monday
• Want a possible $1 million in retirement? Invest $50,000 each in these 3 ASX shares and wait a decade
• Buy and hold these 3 ASX ETFs for a decade
• How to get rich by following Warren Buffett’s advice

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, 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 Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Brickworks, Fortinet, Meta Platforms, Microsoft, Salesforce, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Amazon.com, Meta Platforms, Salesforce, and VanEck Morningstar Wide Moat ETF. 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 Macquarie Group Ltd (ASX: MQG) share price has been having a tough time of late.

Since peaking at a 52-week high of $207.94, the investment bank’s shares have pulled back 13% to close trade at $181.25 on Wednesday.

While this is disappointing for shareholders, it could be a buying opportunity for the rest of us if Morgans is on the money with its recommendation.

Macquarie share price could rise materially

Morgans currently has Macquarie shares on its best ideas list. These are the ASX shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe. They are supported by a higher-than-average level of confidence and are its most preferred sector exposures.

According to the note, the broker has an add rating and $222.80 price target on the company’s shares.

Based on where Macquarie shares currently trade, this implies potential upside of 23% for investors over the next 12 months.

In addition, the recent weakness in its share price has boosted the potential yield on offer with its shares. Morgans is anticipating a partially franked dividends of $8.28 per share in FY 2023, which equates to a yield of almost 4.6%.

Why is the broker bullish?

Morgans is a fan of Macquarie due to its positive long-term outlook, which is being supported by structural growth markets. In addition, in the near term, the broker believes that recent market volatility will be a boost for its trading businesses. It explained:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.

All in all, this could make it well worth consider Macquarie shares if you have limited exposure to the sector.

The post Why the Macquarie share price could rise over 20% from here appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The banking sector has taken a bit of a hit this year amid concerns over the collapse of Credit Suisse and Silicon Valley Bank.

This has left many ASX 200 bank shares trading at a sizeable discount to the prices that investors were willing to pay to own their shares just a matter of a few months ago.

Given this recent weakness, investors may be wondering which of the big four banks could be buys right now.

Well, to help narrow things down, the team at Morgans has been running the rule over the sector and has named only one of the big four as a buy, with the rest being dealt hold ratings.

Let’s take a look at what the broker is saying about these ASX 200 bank shares.

ANZ Group Holdings Ltd (ASX: ANZ)

Morgans has retained its hold rating on ANZ with an improved price target of $26.24. It commented:

Recent loan and deposit market share growth (but at what returns?). Lowest low rate fixed rate loan exposure. Leading institutional banking franchise. Greater diversification into US$ and NZ economy. Valuation support and attractive yield. Cautious re M&A (NOHC implications) and tech transition to a digital bank

Commonwealth Bank of Australia (ASX: CBA)

The broker also has a hold rating on Commonwealth Bank’s shares with a boosted price target of $97.87. Its analysts commented:

The largest and highest quality bank, with a loyal retail investor and customer base. Highest return on equity (supported by buybacks) and lowest cost of equity. Leading technology. Cautious re: largest fixed rate loan cliff exposure, weakest valuation support, and lowest dividend yield.

National Australia Bank Ltd (ASX: NAB)

NAB is the third of the big four banks to be given a hold rating. However, on this occasion the broker has reduced its price target to $28.78. The broker said:

Recent slowing of loan growth. Leading SME relationship banking franchise. Increased simplification and improving digitisation in personal banking. Meaningful improvement in ROE that is in excess of cost of equity. Attractive yield and buyback. Cautious re step-up in costs and weaker valuation support.

Westpac Banking Corp (ASX: WBC)

The only ASX 200 big four bank share that Morgans rates as a buy is Westpac. It has retained its add rating with an improved price target of $25.98. It said:

Greatest potential improvement in ROE (vs relatively low risk profile) via cost-out targets, business exits, rates leverage, efficiency lift (including regulatory capital reduction), and lifting loan growth. Valuation support and strong yield. Cautious re: ability to deliver transformation and market share improvement.

The post Which is the best ASX 200 bank share to buy right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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’ve been waiting for an opportunity to buy BHP Group Ltd (ASX: BHP) shares, then you could be in luck.

That’s because one leading broker believes that short-term jitters could be uncovering long-term value for investors.

BHP shares looking attractive

According to a note out of Morgans, its analysts were reasonably pleased with BHP’s recent quarterly update. The broker commented:

BHP posted its 3Q23 operational result. Largely in-line with our estimates and close to consensus.

In response to the result, the broker has reiterated its add rating on the Big Australian’s shares with a slightly trimmed price target of $50.40. Based on where they currently trade, this implies potential upside of almost 15% for BHP shares over the next 12 months.

Morgans believes that recent weakness has created a buying opportunity for patient investors. It explained:

Recent weakness is starting to uncover some further value in BHP. On a purely short-term basis (3-6 months) we see further external factors that could maintain volatility in BHP’s share price and create some attractive buying opportunities. While on a longer term basis we expect BHP to firm towards our A$50.40 Target Price. We maintain our ADD rating.

Big dividends ahead

It is also worth noting that Morgans isn’t just expecting strong gains from BHP shares. The broker also sees potential for some very attractive dividend yields in the near term.

For example, its analysts are forecasting a fully franked dividend of US$1.95 per share in FY 2023 and then US$2.52 per share in FY 2024. Based on the latest BHP share price of $44.00 and current exchange rates, this will mean yields of 6.7% and 8.7%, respectively.

Overall, this means that if Morgans is on the money with its recommendation, investors stand to receive a total return in the region of 22% between now and this time next year. Not bad!

The post Morgans says ‘attractive buying opportunity’ coming for BHP shares appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 stocks brokers just upgraded to ‘buy’
• Top brokers name 3 ASX shares to buy today
• Down 8% in a week, is the BHP share price facing more headwinds in 2023?
• Investing in ASX 200 mining stocks? Here’s Citi’s latest iron ore price forecast
• 5 things to watch on the ASX 200 on Wednesday

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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