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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower again. The benchmark index fell 0.3% to 7,275.3 points.

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

ASX 200 expected to rebound

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% higher this morning. This follows a strong night on Wall Street which saw the Dow Jones rise 0.95%, the S&P 500 climb 0.6%, and the Nasdaq push 0.7% higher.

Oil prices near three-year highs

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$73.30 a barrel and the Brent crude oil price is up 0.5% to US$75.55 a barrel. Drawdowns in U.S. inventories and accelerating German economic activity pushed oil prices close to three-year highs.

NEXTDC given conviction buy rating

The Nextdc Ltd (ASX: NXT) share price could be in the buy zone according to analysts at Goldman Sachs. This morning the broker has reiterated its conviction buy rating and put a $14.80 price target on the data centre operator’s shares. This follows a recent analyst day held by rival Equinix which highlighted the robust outlook for interconnected data centres.

Iron ore prices soften

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch on Friday after the iron ore price softened. According to Metal Bulletin, the spot iron ore price fell 1.2% overnight to US$213.46 a tonne.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could end the week in the red after the gold price dropped again. According to CNBC, the spot gold price is down 0.55% to US$1,773.90 an ounce. Traders were selling the precious metal after comments out of the US Fed.

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

More reading

• 2 ASX mining shares that could be buys
• ASX 200 drops again, Westpac falls, Transurban down
• Is the Fortescue (ASX:FMG) share price a buy with a potential 21% yield?
• Why these 2 ASX uranium shares are leaping higher again today
• Top brokers name 3 ASX shares to sell today

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

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If you’re not averse to investing in the resources sector, then you may want to look closely at the highly rated ASX mining shares listed below.

They have both been rated as buys recently and tipped to generate strong returns for investors. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The Big Australian could be a top option in the mining sector for investors to consider. This is thanks to its world class, low cost, and diverse operations and favourable commodity prices.

The latter is particularly the case with iron ore and oil prices. Iron ore prices are currently trading within sight of record highs, whereas oil prices have just hit two-year highs. Based on BHP’s costs guidance, it is generating significant free cash flow based on current spot prices.

Analysts at Macquarie are very positive on the company. The broker is expecting a record second half result in August, underpinning generous cash returns to shareholders.

Macquarie currently has an outperform rating and $63.00 price target on BHP’s shares. This compares to the latest BHP share price of $47.60.

South32 Ltd (ASX: S32)

Another mining share to consider is South32. This diversified mining company has exposure to commodities including alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

But the one getting analysts excited is aluminium. Analysts at Goldman Sachs are forecasting a major aluminium deficit by the middle of the decade. This is expected to lead to a significant increase in prices, boosting the company’s earnings and dividends greatly.

Goldman said it has “little doubt that investors should view aluminium as in the early stages of a multi-year bull market.”

In light of this, the broker currently has a conviction buy rating and $3.80 price target on South32’s shares. This compares to the latest South32 share price of $2.91.

The post 2 ASX mining shares that could be buys appeared first on The Motley Fool Australia.

More reading

• Why these 2 ASX uranium shares are leaping higher again today
• Leading broker tips South32 (ASX:S32) share price to rocket higher
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• ASX 200 resource share upgraded to ‘overweight’ on LSE by Morgan Stanley
• Here’s why the BHP (ASX:BHP) share price is pushing higher today

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

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If you’re searching for growing dividends, then you might want to look at the ASX shares listed below.

They have been growing their dividends at a decent rate and look well-positioned to continue doing so in the years to come. Here’s what you need to know about these ASX dividend shares:

Coles Group Ltd (ASX: COL)

Coles is of course one of Australia’s big-two supermarket operators. In addition to this, it operates other businesses such as flybuys and Liquorland.

Thanks to its defensive qualities and strong market position, the company has been growing strongly during the pandemic. And while its growth could turn negative in the immediate term due to heightened sales in the prior corresponding period, its sales are still growing nicely on a two-year basis.

Furthermore, the company has been tipped to resume its growth in FY 2022, leading to another dividend increase.

For example, Goldman Sachs is forecasting dividends per share of 62 cents in FY 2021 and 67 cents in FY 2022. Based on the current Coles share price, this will mean fully franked yields of 3.7% and 4%, respectively, over the next two years.

Rural Funds Group (ASX: RFF)

Another ASX share that has been growing its dividend at a solid rate in recent years is Rural Funds. It is an agricultural-focused property company with a diverse portfolio of assets. This includes almond and macadamia orchards, premium vineyards, water entitlements, cattle, and cropping assets.

The company’s properties are leased to high quality tenants on very long term agreements. And with rental increases built into these agreements, the company appears well-placed to grow its distribution by its target of 4% per annum.

Management has provided distribution guidance for 11.28 cents per share in FY 2021 and then 11.73 cents per share in FY 2022. This implies yields of 4.4% and 4.6%, respectively.

The post 2 growing ASX dividend shares for income investors 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 owns shares of and has recommended COLESGROUP DEF SET and RURALFUNDS STAPLED. 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 S&P/ASX 200 Index (ASX: XJO) dropped by another 0.3% today to 7,275 points.

Here are some of the highlights from the ASX today:

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down around 1% after making an announcement about its New Zealand business.

The bank said it’s retaining its 100% ownership of Westpac New Zealand Limited (WNZL) and will not proceed with a demerger of its Westpac New Zealand business.

Peter King, the Westpac CEO, said:

After a detailed review, we believe a demerger of the WNZL business would not be in the best interests of shareholders.

Our review identified opportunities to improve services for customers and value across the WNZL business and we will progress these with the WNZL Board and management team.

WNZL is a strong business that has been serving New Zealand for 160 years. We remain committed to delivering for customers and fulfilling our purpose of helping Australians and New Zealanders succeed.

Transurban Group (ASX: TCL)

The Transurban share price fell around 0.7% today after announcing its FY21 final distribution.

The ASX 200 toll road business announced that a distribution totalling 21.5 cents per stapled security will be paid for the six months ending 30 June 2021.

That will include a partly franked distribution of 20.5 cents from Transurban Holding Trust, as well as a 1 cent fully franked dividend from Transurban Holdings Limited.

This takes the total FY21 distribution to 36.5 cents per stapled security, of which 1 cent is fully franked.

Woolworths Group Ltd (ASX: WOW) and Endeavour Group Limited (ASX: EDV)

The Woolworths share price was the worst performer in the ASX 200 today after the demerger of Endeavour Group. With a sizeable part of the business separated, investors sent the Woolworths share price down 11.2%.

Endeavour Group’s share price finished the day at $6.02.

This divested business is described as Australia’s leading retail drinks and hospitality business. It has a number of different businesses including Dan Murphy’s, BWS and ALH Hotels.

The post ASX 200 drops again, Westpac falls, Transurban down appeared first on The Motley Fool Australia.

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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 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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Emerald Resources NL (ASX: EMR) shares surged in morning trade after the mining company released a progress update on its 100% owned, flagship Okvau gold mine. The company announced it had its maiden gold pour, producing two gold bars weighing a combined 8.6kg.

As a result, the Emerald Resources share price jumped up by more than 12% this morning. Unfortunately for shareholders, the surge was short-lived, with the company’s shares closing flat for the day at 90 cents apiece.

First mover advantage

According to Emerald Resources, it was a first mover in the emerging gold province in Cambodia, securing a mineral investment agreement and an industrial mining licence over the Okvau Gold Project.

The Okvau mine’s gold production is expected to output more than 100,000 ounces of gold per annum. This is in line with the company’s definitive feasibility study released on 1 May 2017 and subsequently updated on 26 November 2019.

What did management say?

The past two months have been busy for Emerald Resources. The company has been focused on the construction of the Okvau substation and connecting the remotely located plant to key utilities.

Today’s update was seen “as a major milestone for the company and Cambodia, as the project becomes the first modern large scale mine to operate in the country”, according to Emerald Resources managing director Morgan Hart.

He further stated that “This marks the creation of a new industry for Cambodia bringing opportunities and benefits for the people of Cambodia”.

Hart also paid kudos to his team which had remained on schedule and on budget for the first gold pour, despite the logistical challenges brought on by the pandemic. 

Emerald Resources share price snapshot

Over the last 12 months, the Emerald Resources share price is up over 68%, beating the ASX Materials sector by around 42% over the same time. Based on the current share price, the gold miner has a market capitalisation of around $464 million.

The post Why the Emerald Resources (ASX:EMR) share price jumped 12% this morning appeared first on The Motley Fool Australia.

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Motley Fool contributor Frank Tzimas 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 Emeco Holdings Limited (ASX: EHL) share price ended the day higher today following its successful entry into the Australian bond market.

At the end of market trade, the equipment rental company’s shares closed the day at 98 cents apiece, up 3.70%.

Emeco price’s senior secured notes

Investors bought up Emeco shares after the company announced a positive update to the ASX.

According to its release, Emeco advised it has placed a $250 million price tag on its senior secured notes. The notes mark the company’s inaugural issuance in the domestic Australian Medium-Term Note (MTN) market.

Emeco stated that the bonds will have a fixed coupon rate of 6.25%, paid bi-annually for a 5-year period. Settlement of the bonds is expected to be completed on 2 July 2021, with the maturity date falling on 10 July 2026.

Proceeds of the notes will be used to repay the company’s outstanding obligations. This relates to the 9.25% interest March 2024 United States noted and associated hedges.

Emeco noted that the transaction meets a number of its strategic funding objectives. This includes:

• Extending the debt maturity profile;
• Lowering its funding costs – an annual interest saving of around $9 million;
• Establishing a presence in the domestic bond market; and
• Replacing US$-denominated debt with A$-denominated debt.

Emeco managing director and CEO, Ian Testrow touched on the notes offer, saying:

We are very pleased with the exceptional investor response to our entry into the Australian bond market. We had planned to partially refinance our US notes, however the significant investor interest has provided us with the opportunity to fully retire our legacy debt.

The Notes significantly reduce our funding costs, lengthens our maturity profile and will result in a cleaner capital structure.

In addition to the news, Emeco reaffirmed its FY21 operating earnings before interest, tax, depreciation and amortisation (EBITDA) of $235 million to $238 million.

The company revealed it will release its full-year results for the 2021 financial year on 18 August, 2021.

About the Emeco share price

The Emeco share price has lost 8% in the past 12 months and is down roughly 15% year-to-date. The company’s shares hit a recent 52-week high of $1.245 in February but have headed lower ever since.

Emeco has a market capitalisation of about $522 million, with a tad more than 544 million shares outstanding.

The post Why the Emeco (ASX:EHL) share price finished higher today appeared first on The Motley Fool Australia.

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

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The Pro Medicus Ltd (ASX: PME) share price surged higher today.

Today’s gain puts the healthcare imaging provider’s share price within reach of its previous all-time high.

Earlier today, Pro Medicus shares reached an intraday high of $57.57. The company’s shares finished the day at $56.87, up 6.9%.

What’s pushing the Pro Medicus share price upwards?

There were no announcements from the company today. However, a couple of snippets of information might have influenced the share price.

Firstly, a broker note out of Morgans reveals its analysts have downgraded their ‘hold’ rating to ‘reduce’. That may not sound positive for the company at first, but the broker did increase its price target from $41.30 to $49.69.

Morgans’ mixed signals are the result of Pro Medicus’ rapid share price appreciation in the last month. Given the lack of news, the broker thinks the upwards move might stem from short positions being covered ahead of the end of the financial year.

For this reason, Mogans sees current prices as unsustainable in the short term.

Another broker’s take

Bell Potter released its latest research on the medical imaging company yesterday. According to the note, the broker retained a ‘hold’ rating with a 12-month Pro Medicus share price target of $49, previously $43.

A general review of outlook for Pro Medicus $PME by @Bell_Potter finds a minimum of $146m in revenues await over next 5-8 years. Upgrades forecasts. Target price lifts to $49 from $42. Hold rating retained considering where share price is #XJO #StocksToWatch #investing #equities

— Rudi Filapek-Vandyck (@Filapek) June 23, 2021

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Additionally, Bell Potter estimated the company’s market share in radiology image viewing as somewhere between 3% to 5%. Hence, the future potential for further expansion remains vast in their opinion.

Topping the 200

The impressive share price performance extends beyond today, this week, or even month. As we covered in a separate story, Pro Medicus is one of the best performing shares in the S&P/ASX 200 Index (ASX: XJO) so far in 2021.

A wave of optimism has followed the company winning a few big contracts in the first six months of the year. Between these deals, Pro Medicus added $85 million in contracted revenue over the next 7 to 8 years.

The post Pro Medicus (ASX:PME) share price jumps 7% following broker notes appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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 Australian share market is home to a good number of companies that are growing at a quick rate.

Two ASX shares that are growing particularly quickly are listed below. Here’s why they have been rated as buys recently and could be top options for growth investors:

Nitro Software Ltd (ASX: NTO)

The first ASX growth share to look at is Nitro Software. It provides document productivity software, including PDF productivity, eSigning workflow, and analytics solutions.

The key product in its portfolio is the Nitro Productivity Suite. This PDF productivity solution is highly scalable, serving large multinational enterprises and government agencies, as well as small businesses and individual users. It has been growing in popularity in recent years and is underpinning significant recurring revenue growth.

For example, in FY 2020 the company reported a 64% increase in annualised recurring revenue (ARR) to $27.7 million. Looking ahead, more strong growth is expected in FY 2021. Nitro has provided guidance for ARR in the range of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%.

Morgan Stanley has an overweight rating and $3.70 price target on the company’s shares. It sees opportunities for Nitro to upsell and cross sell in the enterprise channel.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.

As with Nitro, Temple & Webster has been growing very strongly in recent years. This has been driven by its leadership position and the ongoing shift to online shopping. Positively, online furniture shopping is still only really getting started in Australia. Particularly in comparison to other Western markets, which have significantly greater online penetration rates.

Management is now preparing for this shift to accelerate and is investing heavily to cement its position as the market leader.

Credit Suisse currently has an outperform rating and $12.54 price target on its shares. It sees scope for the furniture industry to reach ~13% in online penetration by FY 2025.

The post These buy-rated ASX shares are growing rapidly 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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Nitro Software Limited and Temple & Webster Group 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 current Fortescue Metals Group Limited (ASX: FMG) share price may offer a grossed-up dividend yield of almost 22%. Is the Fortescue share price a buy right now?

Is the dividend really going to be that big?

The brokers at Macquarie Group Ltd (ASX: MQG) think that Fortescue is going to pay a fully franked dividend of $3.45 per share in FY21.

If that turns out to be correct, then that’s a 21.7% grossed-up dividend yield at the current Fortescue share price.

The Fortescue earnings per share (EPS) is projected to be $4.30. That puts the current valuation at 5x FY21’s estimated earnings.

But Macquarie is then expecting a sizeable drop of profit with iron ore prices expected to decline. In FY22, Macquarie is expecting Fortescue’s EPS to be $3.03. That would be a profit decline of around 30%.

The broker also thinks that the Fortescue dividend will see a 29% cut in FY22 to $2.45. That translates to a forward grossed-up dividend yield of 15.4%.

Overall, Macquarie rates Fortescue as a buy with a price target of $27 for the next 12 months.

The most recent ASX announcement from the company is regarding the Grand Inga Hydroelectronic Projects. The Democratic Republic of Congo Government has invited interested corporations and governments to contact Fortescue Future Industries (FFI) – Fortescue’s green projects division – if they have investment or service interest in the Inga Projections on the condition that personnel will be trained and sourced from the DRC as Fortescue has done in Australia.

In that announcement, the company confirmed that discussions have taken place with the DRC Government in respect to the grant of exclusive rights to develop the Grand Inga suite of projects, though no formal binding agreement has been concluded yet.

Are there bearish opinions on the Fortescue share price?

Morgans thinks that the Fortescue share price is a sell, with a price target of $18.80.

That rating is despite Morgans projecting the business is going to generate more EPS in FY21 and FY22 and pay higher dividends, compared to what Maquarie thinks.

The dividend projection for FY21 from Morgans is $3.67 per share, translating to a whopping 23.1% grossed-up dividend yield this year.

Morgans has some conservative thoughts on the miner because of the very strong iron ore price which it doesn’t think is going to stay around forever. The broker thinks that compared to BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), Fortescue is more vulnerable to falling iron ore prices. The brokers thinks that global steel demand is close to its highest point.

Using Morgans’ projections for FY22, Fortescue is valued at approximately 7x estimated earnings. The forecast grossed-up dividend yield for the next financial year (FY22) is 15.7%.

The post Is the Fortescue (ASX:FMG) share price a buy with a potential 21% yield? appeared first on The Motley Fool Australia.

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

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The AGL Energy Limited (ASX: AGL) share price has bounced more than 10% since the start of this month. Despite the strong performance, shares in the electricity operator are still down more than 25% for the year.

Read on to find out what’s been shaping the AGL share price.

AGL share price at multi-decade low

The AGL share price has been in a world of hurt the past few years. The energy operator has had to fight numerous battles. These include a struggling national electricity market, unstable electricity prices and declining value of its energy generation assets.

Recently, the AGL share price has had to battle numerous headwinds. In addition to macro challenges, the company has had to deal with the sudden exit of its CEO. The company also lost a high-profile Federal Court case against Greenpeace Australia Pacific.

Why is the AGL share price trading higher in June?

Since the company has not released any price-sensitive news, the recent spike in the AGL share price could be attributed to multiple factors.

Investors could be jumping the gun early as they await a line-up of CEO’s. Following the departure of Brett Redman in late April, AGL had promised to update the market by June 30 on likely CEO’s who would take up the position.

In addition, investors could be jumping on AGL’s planned restructuring which the company announced back in March. According to AGL, the company plans to create 2 leading energy businesses via a structural split.

Under the proposed separation, the company will split into ‘New AGL’ and PrimeCo. New AGL will be focused on multi-product energy and will control the retail assets. On the other hand, PrimeCo is earmarked to be Australia’s largest electricity generator housing the company’s coal electricity-generating assets.  

What is the outlook for AGL?

Earlier this year, AGL reaffirmed full-year guidance of $500 to $580 million. In addition, the company issued guidance for 2021 underlying earnings of between $1.585 billion and $1.845 billion.

Analysts and investors have had their premonitions on what the outlook is for AGL. The sudden departure of the company’s CEO has raised concerns about the company’s proposed strategy and the likely success of the separation.

In addition, there have been lingering doubts on how AGL can distribute $2.8 billion of debt in the restructure, whilst retaining investment-grade credit ratings for both.

Despite the headwinds, AGL expects the structural separation to be completed by the end of 2021.

The post The AGL (ASX:AGL) share price has bounced 10% this month 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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