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It certainly has been a great year so far for the Telstra Corporation Ltd (ASX: TLS) share price.

The telco giant’s shares are up 20% since the start of the year.

Incredibly, this means the Telstra share price is even outperforming market darling Afterpay Ltd (ASX: APT) in 2021.

Why is the Telstra share price storming higher?

There have been a number of catalysts for the strong performance by the Telstra share price in 2021. This includes a solid half year result, its plans to unlock value through a restructure and asset monetisation, and bullish commentary by management.

In respect to the latter, the company’s CEO, Andy Penn, revealed that he is targeting mid to high single digit operating earnings growth in FY 2022.

Mr Penn commented: “I am confident the many initiatives we have taken under our T22 program, particularly in simplifying the business and the digitisation program, will further improve customer experience.”

“To get the real benefits from all the effort we’ve already made, Telstra needs to be bold. I’ve set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused,” he added.

In light of this, the market appears confident that Telstra’s dividend cuts are over and that 16 cents per share will be sustainable in the coming years. This was no doubt a huge relief for shareholders who have faced countless dividend cuts over the last decade.

Is it too late to invest?

According to a note out of Ord Minnett from earlier this month, its analysts still see a lot of value in the Telstra share price.

The note reveals that the broker has a buy rating and $4.10 price target on its shares. This implies potential upside of ~14% over the next 12 months excluding dividends. Whereas if you include the 16 cents per share fully franked annual dividend the broker is forecasting for the foreseeable future, this stretches to over 18%.

Ord Minnett believes Telstra is well-positioned to benefit from its leadership in 5G internet.

The post Is the Telstra (ASX:TLS) share price still good value? 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. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Telstra Corporation 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 Supply Network Ltd (ASX: SNL) share price is up 4.3% today. This came after the company posted its full year guidance update earlier today.

The company cited revenue expecatations of around $162 million and a net profit after tax (NPAT) of around $13.5 million.

Supply Network has had a busy year weathering the pandemic. Cash and liquidity reserves on its balance sheet rose from $1.64 million to $3.17 million from June to December 2020. The company was able to maintain its dividend distribution schedule, most recently paying a fully franked dividend of 8 cents per share to investors in April 2021.

In February, Supply Network posted its half-year report for December 30 2020, reporting year on year increase in revenue of 15.4%. Net profit after tax also grew 38.4% year-on-year to $6 million.

Shares in the niche aftermarket commercial-vehicle parts supplier have climbed 67.44% over the single-year period to date. The Supply Network share price currently trades at a price-to-earnings ratio (P/E) of around 25.5.

The post Supply Network (ASX:SNL) share price jumps 4% on positive full-year guidance appeared first on The Motley Fool Australia.

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• Boral (ASX:BLD) share price surges 6% on changes to Seven takeover bid
• Brokers name 3 ASX shares to buy today
• The Pilbara Minerals (ASX:PLS) share price is up 12% in a week
• The New Hope (ASX:NHC) share price is down 7% today
• CSR (ASX:CSR) share price lifts on positive outlook

Motley Fool contributor Zach Bristow 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 Supply Network Limited. The Motley Fool Australia owns shares of and has recommended Supply Network 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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Boral Ltd (ASX: BLD) shares are surging to a new 52-week high today following a variation in the takeover bid from Seven Group Holdings Ltd (ASX: SVW). At the time of writing, the Boral share price is trading 6.38% higher at $7.34.

Let’s take look at the latest takeover news.

Seven Group revises offer pending acceptances

Boral shares are having a bumper end to the week after Seven Group today revised its all cash offer to take over the company. In an ASX announcement around midday, Seven advised it is increasing its buy offer from $6.50 per share to $7.30 per share providing it secures acceptance to increase its stake in Boral to 29.5% by 2 July.

Seven Group also laid out a second offering to a ceiling of $7.40 per share if it secures the necessary acceptances to increase its stake to 34.5% by 7 July.

Despite spending a decent portion of the morning trading in the red, Boral shares have rallied to their current level since the announcement was released.

Earlier moves in review

It was only Tuesday this week when Seven Group made further changes to some key tension points in its $8 billion offer for Boral. In that update, the conglomerate made its offer unconditional in an effort to increase the deal’s attractiveness for current Boral shareholders.

However, Boral management counter-argued that Boral shareholders should reject Seven Group’s offer of $6.50 per share on the basis it undervalued the company.

On Monday this week, Boral also divested its US building products segment in a transaction worth around $3.6 billion. Boral chair Kathryn Flagg stated at the time:

The sale is expected to generate sufficient surplus capital once the transaction closes. Based on Boral’s financial framework, we estimate this surplus (prior to any reinvestment alternatives) to be ~$3.6 billion which equates to $3.02 per share.

Boral also advised in the footnotes of its US divestiture update that, in addition to the $3.6 billion in estimated surplus, the company also expects proceeds of around $167 million following the divestment of Meridian Brick. This is set to close in the first quarter of FY22.

The market has continued to digest these moves over the past few days, driving the Boral share price around 8% higher for the week. 

Boral share price snapshot

Including today’s gains, the Boral share price is up by around 48% year to date. It has also rallied by around 100% over the past 12 months. At its current share price, Boral has a market capitalisation of around $8.7 billion and trades at a price-to-earnings ratio (P/E) of around 45.

Boral paid its last dividend of 9.5 cents to shareholders in April 2020, which was 50% franked, but opted to withhold the interim dividend in the first half of FY21. 

The post Boral (ASX:BLD) share price surges 6% on changes to Seven takeover bid appeared first on The Motley Fool Australia.

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• ASX 200 sinks 1.9%: BOQ’s ME Bank acquisition approved, CBA divests insurance business

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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $145.00 price target on this payments company’s shares. This follows news that the company will allow US consumers to shop at retail giants such as Amazon and Nike with a pay anywhere offering. The broker notes that combined, the 12 retailers account for almost half of all U.S. ecommerce volume. Morgan Stanley sees this as a big positive and suspects that it could lead to fully integrated BNPL services at some of these merchants in the future. The Afterpay share price is fetching $129.95 today.

Catapult Group International Ltd (ASX: CAT)

A note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this sports analytics and wearables company’s shares slightly to $2.45. According to the note, the broker believes that Catapult’s acquisition of UK-based SBG Sports Software will support its sales growth and strengthen its competitive position and customer value proposition. However, it does expect this deal to push back its cashflow breakeven point into FY 2025. The Catapult share price is trading at $2.01 today.

Metcash Limited (ASX: MTS)

Analysts at Citi have retained their buy rating and $4.10 price target on this wholesale distributor’s shares. According to the note, the broker is expecting a strong full year result from Metcash next week. Citi has pencilled in a 23% increase in full year earnings to $399 million. This is thanks partly to Food earnings and the Total Tools acquisition, which are expected to offset a couple of major contract losses. The Metcash share price is trading at $3.67 this afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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• Citi plans to disrupt Afterpay (ASX:APT) and Zip (ASX:Z1P)
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• Why Catapult, Earlypay, Nuix, & Woolworths are tumbling lower
• Why Afterpay, Core Lithium, De Grey Mining, & Pro Medicus are storming higher

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 Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Catapult Group International Ltd. 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 Pilbara Minerals Ltd (ASX: PLS) share price has been a standout performer among the S&P/ASX 200 Index (ASX: XJO) this week.

At the time of writing, the Pilbara Minerals share price is down 3.02% to $1.50 per share, however, despite today’s losses, Pilbara shares have gained more than 12% across the past week.

Today’s price movement follows an update regarding a plant restart, production costs and June quarter shipments.

Ngungaju plant restart

Pilbara Minerals is looking to grow its lithium production through the restart of its Ngungaju plant.

The Ngungaju operation was formerly owned by Altura Mining Limited (ASX: AJM), which Pilbara Minerals acquired in October last year for $175 million. This was during a time where lithium spot prices had collapsed to multi-year lows, resulting in Altura falling into administration.

In today’s announcement, the board has approved the staged restart of the Ngungaju plant, with operations expected to recommence in the December quarter of 2021.

The company estimates the restart will cost approximately $39 million, consistent with its original forecast at the time of the acquisition.

Pilbara Minerals said costs will likely be funded by existing cash, however, will consider funding support via a potential restructure of its existing syndicated debt facility, if favourable terms and conditions can be achieved.

Production is expected to be ramped up to approximately 180,000 to 200,000 dry metric tonne (dmt) by mid calendar year 2022. The company advises this will make a significant contribution to the annual production of its overall Pilgangoora project, increasing from 560,000 to 580,000 dmt.

Shipments and costs update

In the same announcement, Pilbara Minerals expects a record June quarter spodumene concentrate shipment of approximately ~96,000 dmt.

In light of strong production figures, the company flagged the likely increase in unit cash operating costs in FY22. The higher costs were driven by factors including higher sea freight rates, costs associated with the Ngungaju plant restart, and a stronger Australian dollar to US dollar exchange rate.

Additionally, Pilbara Minerals said a higher mining strip ratio, the amount of waste material that must be removed to reach the ore, will be required over the 12–24 months to support higher plant output. The higher ratio will drag on operating costs.

According to the announcement, cash operating costs of the combined Pilgangoora operation for FY22 is expected to be in the range of A$525 to A$575/dmt (including cost, insurance and freight to China) or approximately US$395 to US$430/dmt at an AUD:USD exchange rate of 75 cents.

Beyond calendar year 2022, the company expects costs to trend lower, as it realises synergies and improved economies of scale from the ramp-up of Ngungaju operations and the normalisation of freight costs and strip ratios.

What did management say?

Pilbara Minerals’ managing director and CEO, Ken Brinsden welcomed the restart, saying:

The well-timed acquisition of the Altura Lithium Operations provides Pilbara Minerals with available spodumene concentrate at the same time the market is expected to grow rapidly to deal with the mass global adoption of lithium-ion battery technology for use in clean energy applications

Brinsden acknowledged higher costs in FY22 but remains confident in the company’s long-term trajectory:

While production costs will likely be slightly elevated during FY22, we remain confident in both Pilgangoora’s pre-eminent position as an important global lithium raw materials supply base and the trend towards lower cost in the coming years as the Ngungaju Plant restarts, normalises and production settles at a higher rate.

Head above the clouds for the Pilbara Minerals share price

The Pilbara Minerals share price has set a new record all-time high in each of its last four trading sessions.

It looks like its year-to-date returns are fast approaching triple digits, currently up about ~85% this year.

The Pilbara Minerals share price has benefited from factors including firmer lithium prices and a broader bullish performance of lithium-related shares.

The post The Pilbara Minerals (ASX:PLS) share price is up 12% in a week appeared first on The Motley Fool Australia.

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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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Shares in New Hope Corporation Limited (ASX: NHC) are falling today after news broke of the company’s convertible notes offering. At the time of writing, the New Hope share price is $1.71 – 6.79% less than its previous closing price.

This morning, the company released news that its senior unsecured convertible notes have been priced at $200 million.

Let’s take a closer look at today’s news from the coal, oil, agriculture, technology, and investment company.

Convertible notes offering

According to New Hope, the company’s convertible notes offering will see it pocket around $196 million after fees.  

The notes’ initial conversation price will be $2.10 per share ­­­– a 25% premium on the reference share price of $1.68.

They will have a set coupon rate of 2.75% which will be paid twice yearly until the notes mature.

They will mature on 2 July 2026 unless they are redeemed, converted, or repurchased.

New Hope share price snapshot

Luckily for the New Hope share price, today’s drop hasn’t weighed too heavily on its gains this year.

Currently, the New Hope share price is 18% higher than it was at the beginning of 2021. It has also gained 25% since this time last year.

The company has a market capitalisation of around $1.5 billion, with approximately 832 million shares outstanding.

The post The New Hope (ASX:NHC) share price is down 7% today appeared first on The Motley Fool Australia.

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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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Shares in CSR Limited (ASX: CSR) are trading slightly higher today, following positive comments from the company’s annual general meeting.

Read on to find out why CSR’s management are bullish on the company’s outlook.

Why is the CSR share price in focus?

Earlier today, CSR held its annual general meeting for shareholders and investors. As part of the presentation, the company’s management highlighted a positive outlook for the company.

CSR chair John Gillam informed shareholders that the outlook for Australia’s residential building market has improved significantly in the past year. Mr Gillam highlighted the combination of the Federal Government’s Homebuilder grant program and various State Government initiatives for the positive outlook.

CSR’s managing director, Julie Coates, also noted that Homebuilder activity was driving stronger demand. In addition, she highlighted that the company was seeing longer periods between approvals to commencements driven by labour and product shortages.

As a result, management noted that demand for CSR’s products will be extended across the remainder of this year and into the 2022 calendar year. The company highlighted that it is well placed to meet demand and adapt to grow production as required.

CSR highlighted that the company is poised to build on a strong position in the detached housing market and diversify into other construction sectors.

Snapshot of the CSR share price

CSR is one of the leading building products businesses in Australia and New Zealand. The company boasts an impressive portfolio of brands including PGH bricks and pavers, Gyprock plasterboard and Bradford insulation.

Despite a tumultuous 2020, the CSR share price has surged more than 15% in 2021. Shares in the company have benefited from Australia’s ongoing construction boom.

The CSR share price recently hit all-time highs, following a positive full-year result. Despite disruptions of the pandemic, the company delivered a 17% increase in statutory net profit after tax of $146 million. In addition, the company also reported an 8% increase in group earnings before interest and taxes (EBIT) of $184.3 million with EBIT margins also increasing from 10.7% to 12.0%. 

The CSR share price was recently buoyed by building approvals data from the Australian Bureau of Statistics (ABS). As a result, market analysts noted that the company is still in the early stage of an earnings upgrade cycle.

Shares in CSR hit an all-time high of $6.48 earlier this year following its positive full-year result. At the time of writing, the CSR share price is currently trading at around $5.95.

The post CSR (ASX:CSR) share price lifts on positive outlook appeared first on The Motley Fool Australia.

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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 Family Zone Cyber Safety Ltd (ASX: FZO) share price has jumped 8.47% to 64 cents at the time of writing, after a trading halt on the company’s shares was lifted today.

This comes after the company revealed it had completed a capital raising to acquire a new business and accelerate its growth in the United States.

Family Zone capital raising

Family Zone successfully completed a $23 million placement to institutional, professional and sophisticated investors. The shares were priced at 53.5 cents, which is a 9.3% discount on the last closing price of 59 cents on 22 June.

Family Zone will be pleased to see its share price emerge from the capital raising in positive territory. Often, new discounted shares from a capital raising can drag a company’s share price down.

A recent example includes the Earlypay Ltd (ASX: EPY) share price tanking 7.2% after its capital raising on Thursday. In addition, the Wisr Ltd (ASX: WZR) share price tumbled 14% after its $50 million capital raising on 2 June.

What did Family Zone acquire?

Investors could be snapping up Family Zone shares in response to the company’s Net Ref acquisition and US growth plans.

Net Ref is a US-based specialist provider of classroom management tools. The company has been described as a “relatively new entrant” to the US primary and secondary education scene. Within 12 months, Net Ref has grown to service more than 450,000 students.

In addition to Net Ref products, the acquisition also brings together a quality, ready-made sales and support team to drive the company’s US growth ambitions.

Family Zone share price jumps to record territory

At the time of writing, Family Zone shares are swapping hands for 64 cents. This is just shy of their record intraday price of 65 cents, reached earlier this afternoon.

Almost 3 million shares have traded hands so far today compared to its 10-day average of about 813,000.

The company has a market capitalisation of more than $254 million.

The post Family Zone (ASX:FZO) share price jumps 8% after $23m capital raising appeared first on The Motley Fool Australia.

More reading

• The Family Zone (ASX:FZO) share price jumps 7%. Here’s why

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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Woodside Petroleum Limited (ASX: WPL) is one of numerous ASX-listed coal, oil, and gas companies claiming lenders and insurers are pressuring the energy sector to go green by refusing to finance or insure companies.

The oil and gas producer has given a submission to the Joint Standing Committee on Trade and Investment Growth’s inquiry into the prudential regulation of investment in Australia’s export industries.

Within its submission, Woodside said lenders and insurers are increasing their focus on companies’ environmental, social, and governance (ESG) initiatives.

Additionally, the company said some investors are moving away from investing in oil and gas producers.

Woodside’s comments echo the sentiments of Santos Ltd‘s (ASX: STO) managing director Kevin Gallagher. Gallagher recently told an industry conference that equity investors have “turned off the taps”. He said:

Increasing ESG pressure has restricted access to capital, with banks increasingly under pressure to not fund projects in our sector…

Something (energy industry participants) can all agree on is that a net-zero future is critical for our industry.

Multiple other ASX-listed companies have backed Woodside’s claims in their own submissions. And coal producer Yancoal Australia Ltd (ASX: YAL) went as far to say some banks and insurers are succumbing to “an alarmist agenda promoted by activists”.

Which banks aren’t financing energy companies?

All 4 Australian big banks have made commitments to phase out their investments in coal mining and power. However, none of the big four have announced they are phasing out investments in oil and gas operations.

Commonwealth Bank of Australia (ASX: CBA) is planning to exit the coal sector by 2030, as long as Australia has secured an alternative energy platform.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) is phasing out all its lending to thermal coal companies by 2025.

Westpac Banking Corp (ASX: WBC) is refusing to establish new relationships with thermal coal companies. It’s also limiting its support of thermal coal mines, and removing itself from the sector by 2030.

National Australia Bank Ltd (ASX: NAB) is the only big bank to not rule out funding coal beyond 2030. However, it is decreasing its financing of coal by 50% by 2026. It has also set a goal to almost entirely remove coal from its books by 2030.

Additionally, insurers including Allianz, QBE Insurance Group (ASX: QBE), CGU, and Axis have recently stopped insuring coal mines.

Whitehaven Coal Ltd (ASX: WHC) said the financial institutions are only listening to “the loud voices of activist groups”.

What ASX pure-play coal companies are saying

In its submission to the senate, Yancoal said Australian banks’ stance on financing coal mining has been noticed internationally. It said the reluctance is causing the cost of Australian coal to increase.

It also said the tougher requirements to get finance and security is detrimental to lowering the industry’s emissions, as it disallows companies to work towards more environmentally friendly practices.

Whitehaven said a common question asked by international banks when Australian coal companies approach them for financing is:

If you cannot raise funding and support from your own banks in your own country, then why should we take the risk in backing you?

Whitehaven claims financial institutions’ refusal to lend to coal producers goes against the policies of Australia’s major governments.

It said Prime Minister Scott Morrison and Resources Minister Keith Pitt both believe regional communities are dependent on resources jobs. Additionally, both politicians believe the coal industry will create wealth for decades to come.  

Whitehaven also said if “banks’ restrictive policies” continue, the resources and agriculture sectors will be hit next.

The post Woodside among ASX energy shares claiming financiers are pulling the pin appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
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• The Santos (ASX:STO) share price has gained 9% in a month

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 AMP Ltd (ASX: AMP) share price is moving on up. At the time of writing, shares in the financial institution are trading for $1.20 – up 3.45%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.32% higher.

The positive price movement comes amid a new board appointment and daily share buybacks.

Let’s take a closer look at what AMP has been up to.

AMP’s recent news

In a statement to the ASX, AMP announced the appointment of Michael Hirst to its board. He will serve as an independent, non-executive director. Hirst starts next Thursday.

Hirst was CEO of Bendigo and Adelaide Bank Ltd (ASX: BEN) between 2009 and 2018. He also serves on the boards of AMCIL Limited (ASX: AMH) and not-for-profit GMHBA Limited. As well, he is the chair of Butn, a fintech start-up.

AMP Chair Debra Hazelton said:

As the CEO of Bendigo and Adelaide Bank, Mike led and grew the business in a highly challenging and competitive environment with a clear focus on people and clients.

His detailed knowledge of Australia’s retail banking and wealth environment, as well as his broad sector experience as a non-executive director, including innovative fintech start-ups and across Government, will be invaluable.

In other news that could be affecting the AMP share price, the company is continuing its on-market share buyback.

AMP share price snapshot

Over the past 12 months, the AMP share price has decreased by more than 32%. It stands in stark contrast to Australia’s big 4 banks, which have all increased in value from around 47% to 55% higher.

At the time of writing, AMP has a market capitalisation of $4.1 billion.

The post The AMP (ASX:AMP) share price is rising today appeared first on The Motley Fool Australia.

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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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