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S&P/ASX 200 Index (ASX: XJO) resource shares have been enjoying the tailwinds of soaring commodity prices.

While metals like gold, copper and iron ore have slipped from their multi-year (or even record) highs, they remain well above where they were trading this time last year.

For example, iron ore, Australia’s top export earner, is still trading for US$207 per tonne.

And that’s helped convince Morgan Stanley (NYSE: MS) to upgrade its outlook for an ASX 200 resource share that’s listed on multiple international exchanges.

In this instance, the upgrade comes from Morgan Stanley’s London office.

What international ASX 200 resource share did Morgan Stanley upgrade?

Morgan Stanley already has an overweight rating on ASX 200 listed BHP Group Ltd (ASX: BHP). Those shares, obviously, trade on the Australian Securities Exchange.

However, BHP shares are listed on major exchanges across the world, including the London Stock Exchange (LSE) where it’s listed as BHP Group PLC (LON: BHP). And yesterday (overnight Aussie time), Morgan Stanley upgraded BHP Group PLC to overweight.

As the Australian Financial Review notes, London office analyst Alain Gabriel reckons BHP shares offer “generous capital returns“.

Part of his bullishness on BHP is based on today’s iron ore prices holding, in which case Gabriel forecasts “it’s trading on a financial 2022 free cashflow yield of 23 per cent. Even at base case forecasts that’s 14 per cent”.

According to Gabriel (quoted by the AFR):

Shares have underperformed peers YTD by an average of 11 per cent and are implying a [long-term] iron ore price of $US71 a tonne versus a spot price of $US207 a tonne.

Gabriel upped his price target to 2,360 pence, up from 2,110 pence.

BHP PLC closed yesterday at 2,065 pence, implying a 14% potential upside.

A word on international listings

It’s worth noting that BHP shares don’t move identically in the different exchanges where the company is listed. Some of that’s due to currency fluctuations, and some on the demand dynamics in any given market.

However, BHP’s London and Aussie listed shares do tend to move rather closely.

Over the past 5 days, for example, BHP’s London shares have lost 2.1%, while on the ASX 200 they’re down 2.2%.

Going back a full year, the difference is larger, with BHP shares gaining 23% on the LSE while they’ve gained 33% on the ASX 200.

The post ASX 200 resource share upgraded to ‘overweight’ on LSE by Morgan Stanley appeared first on The Motley Fool Australia.

More reading

• Here’s why the BHP (ASX:BHP) share price is pushing higher today
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX dividend shares with attractive fully franked yields
• Why are blue-chip ASX 200 shares selling off today?
• The Aussie dollar has plummeted! Here are some ASX winners and losers

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 BHP Group Ltd (ASX: BHP) share price is overcoming broad market weakness and pushing higher on Wednesday.

In afternoon trade, the mining giant’s shares are up over 1% to $47.25. This latest gain means the BHP share price is now up almost 33% over the last 12 months.

Why is the BHP share price pushing higher today?

Today’s gain in the BHP share price appears to have been driven by a broker note out of Morgan Stanley.

According to the note, the broker has retained its overweight rating and lifted its price target on the company’s shares to $50.70. Based on the current BHP share price, this price target implies potential upside of 7.3% over the next 12 months excluding dividends.

However, if you were to include the fully franked dividend of ~$2.10 per share it expects BHP to pay in FY 2021, this potential return stretches to approximately 11.5%. It is also worth noting that Morgan Stanley is expecting its dividend to increase further in FY 2022 and is forecasting a ~$3.60 per share fully franked payout to shareholders.

Why is Morgan Stanley positive on BHP?

Morgan Stanley is positive on BHP largely due to the sky high iron ore price. It believes this will underpin record second half earnings in FY 2021.

In addition to this, a note out of its London office reveals that Morgan Stanley believes the market is under-appreciating its capital return prospects. Due to its low cost assets, strong free cash flow generation, and oil and gas exposure, the broker sees potential for BHP to reward shareholders handsomely in the future with capital returns.

Outside this, the broker notes that the mining giant is working to offload its thermal coal assets. It feel this could give its ESG credentials a major boost once they have been sold off.

All in all, it feels this makes the BHP share price one to consider at the current level.

The post Here’s why the BHP (ASX:BHP) share price is pushing higher today appeared first on The Motley Fool Australia.

More reading

• ASX 200 resource share upgraded to ‘overweight’ on LSE by Morgan Stanley
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX dividend shares with attractive fully franked yields
• Why are blue-chip ASX 200 shares selling off today?
• The Aussie dollar has plummeted! Here are some ASX winners and losers

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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The Huon Aquaculture Group Ltd (ASX: HUO) share price has jumped today, up 7.1% to $2.71.

The salmon company has not released any price-sensitive news to the market but there is a significant new shareholder in the arena. Let’s take a look.

Who’s buying Huon shares?

It was revealed this morning that Fortescue Metals Group Limited (ASX: FMG) CEO Andrew ‘Twiggy’ Forrest has taken a bite out of Huon.

His family’s private investment company, Tattarang, accumulated a 7.33% stake in the salmon farming business on 17 June.

Tattarang secured its strategic stake for $2.48 a share last week, according to a report in the Australian Financial Review (AFR).

Huon share price down almost 40% since February 2020

Like most ASX shares, the March 2020 COVID-19-driven sell-off saw the Huon share price dive 35% from ~$4.60 to a low of $3.05.

The company’s shares have struggled to rebound, down almost 40% compared to pre-COVID levels. And thanks to today’s jump, the Huon share price year to date is about flat – up just 1.1%.

A major catalyst in this underperformance appears to be Huon’s major profit downgrade announcement back in February.

The salmon farmer warned investors that its FY21 earnings could take a big hit following COVID-19 disruptions, excess supply and tighter margins.

Adding insult to injury, the company lost between 50,000 and 52,000 4kg fish after a fire broke out in one of the company’s fish pens in November last year.

Additionally, in January this year, Huon revealed stock anomalies, potentially resulting from criminal conduct by employees. While sales figures were unaffected, the book value of inventory and gross margins is expected to be $2.1 million lower than what was expected for that period.

The company’s half-year results revealed a painful net profit loss of $95.3 million. This compares to its $17.1 million loss in 1H20 and $22.0 million profit in 1H19.

The results announcement triggered a sharp 14% sell-off for Huon shares to $2.63. By 16 June, the Huon share price had hit record all-time lows of $2.26.

The post The Huon (ASX:HUO) share price is up 7% today appeared first on The Motley Fool Australia.

More reading

• Aeris (ASX:AIS) share price slides despite project update
• Viva Leisure (ASX:VVA) share price sinks 7% to 52-week low. Here’s why.
• Why Moderna stock jumped 6% Tuesday
• Why are Soul Patts (ASX:SOL) shares surging 9% today?
• CSL (ASX:CSL) share price falls on broker downgrade

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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Aeris Resources Ltd (ASX: AIS) shares are falling today despite seemingly positive news regarding the Canbelego Copper project being released by the company’s joint venture partner. At the time of writing, the Aeris Resources share price is trading at 19.5 cents – 2.5% lower than it was at yesterday’s close.

However, in earlier trade, Aeris shares jumped 5% to an intraday high of 21 cents each before retreating to their current level.

According to Helix Resources Ltd (ASX: HLX) – which holds 70% of the project – assay results have found thick zones of high-grade copper at the Canbelego project.

The Canbelego project is located around 45 kilometres south-east of Cobar, New South Wales.

Let’s take a closer look at the news from Aeris Resources.

Assay results

Currently, the Canbelego project is undergoing a drilling program to update its resource estimate.

Today, Aeris Resources and Helix Resources announced they’ve received assay results from drill holes including:

• CANDD001 – which intercepted 2 metres at 3.07% copper within a broader interval of 11 metres at 1.10% copper from 270 metres downhole.

• CANDD002 – which intercepted 14 metres at 4.22% copper from 253 metres downhole, including 3 metres at 7.01% copper from 352 metres; and 4 metres at 5.94% copper from 358 metres.

A final drill hole is in progress. The companies are hoping to find further copper near CANDD002.

Aeris Resources and Helix are also testing the assays from the above drill holes for gold. However, they only expect small amounts to be found.

Another drill hole – CANDD004 – found a large amount of chalcopyrite, a copper iron sulphide that is often used as an ore of copper. The drill hole provided assay results including:

• 8 metres with 1% disseminated chalcopyrite logged from 252 metres and 4.8 metres with a variable abundance of chalcopyrite logged from 273 metres.

Helix managing director Mike Rosenstreich said the drilling program has significantly increased the high-grade potential of the Canbelego copper project.

The joint venture partners plan to continue drilling after they receive results from ongoing drill hole electromagnetic surveys.

However, the drilling program has recently been slowed by wet weather.

Aeris Resources share price snapshot

The Aeris Resources share price has been having a party on the ASX lately, despite today’s lacklustre performance.

Currently, Aeris shares are up by around 95% year to date. They have also gained almost 520% since this time last year.

The company has a market capitalisation of around $436 million, with approximately 2 billion shares outstanding.

The post Aeris (ASX:AIS) share price slides despite project update appeared first on The Motley Fool Australia.

More reading

• Aeris Resources (ASX:AIS) share price races 7% higher to multi-year high

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 Viva Leisure Ltd (ASX: VVA) share price is deep in the red during late afternoon trade. This comes after the health club operator provided investors with an outlook for FY21.

At the time of writing, Viva Leisure shares are down 7.37% to $1.57 – just shy of its 52-week low of $1.55 recorded earlier today.

What’s happening with the Viva Leisure share price?

Investors are selling off Viva Leisure shares following an unchanged FY21 outlook from its last trading update in May.

According to its release, the company announced that FY21 revenue is projected to be between 81 million to $83 million. This is a 25.6% to 31.2% increase when compared to the first-half of the 2021 financial year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is estimated to stand at around $13 million to $13.5 million. The forecasted result reflects a 32.1% to 41.1% jump on the prior 6 months. The EBITDA margin is also set to grow from roughly 16.5% to 17.5%.

While the numbers may appear to be positive, Viva Leisure noted that increased costs will impact the final result. This is due to accelerated roll-outs and slower than expected trading conditions caused by COVID-19. In addition, legal fees on completed acquisitions, capital raising costs as well as restructure expenses, are also expected to weigh down the company’s bottom line.

Looking at the company’s share price over the last 12 months, the Viva share price is down more than 30%. Year-to-date the company has also not fared well, with its shares down almost 50%.

The post Viva Leisure (ASX:VVA) share price sinks 7% to 52-week low. Here’s why. appeared first on The Motley Fool Australia.

More reading

• Why the Viva Leisure (ASX:VVA) share price is edging higher today

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

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

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

What happened

Shares of Moderna (NASDAQ: MRNA) jumped 6.3% higher as of the market close on Tuesday. The solid gain came after the company announced that the European Commission (EC) has agreed to buy an additional 150 million doses of its COVID-19 vaccine, bringing the total number of doses ordered by the EC to 460 million.

So what

Moderna announced an even bigger purchase last week with the U.S. government signing an agreement to buy 200 million additional doses of the company’s COVID-19 vaccine. However, investors didn’t respond enthusiastically to that deal, with the biotech stock slipping a little. So why did Moderna’s shares take off on today’s news?

There were some other factors going on last week that distracted investors somewhat from focusing on Moderna’s good news. That’s not the case this week.

Moderna stated that the European Commission could use the extra doses for primary vaccination of individuals, including kids. It could also use the doses for booster shots if required.

Now what

The key thing to watch with Moderna now is the progress of its COVID-19 vaccine candidate that specifically targets coronavirus variants. The European Commission will be able to purchase this revised vaccine pending regulatory authorization, with delivery potentially beginning in 2022. 

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

The post Why Moderna stock jumped 6% Tuesday appeared first on The Motley Fool Australia.

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

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

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The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price is on fire today. Soul Patts shares are up a very healthy 9.28% at the time of writing to $33.33 each. That puts the company at the top of the S&P/ASX 200 Index (ASX: XJO) pile presently as the best performing ASX 200 share today. The current Soul Patts share price is also just shy of the investing conglomerate’s previous 52-week high of $33.48, which we saw back in April.

So what’s behind today’s gains?

Well, there’s no major news or announcements out of Soul Patts today. So it’s possible that the company’s share price performance is a delayed reaction of sorts to yesterday’s blockbuster announcement.

Wedding bells toll

Yesterday morning, Soul Patts announced that it is planning on merging with the listed investment company (LIC) Milton Corporation Limited (ASX: MLT). Milton is one of the ASX’s ‘old-style’ LICs. These companies invest in a basket of shares for the benefit of their investors. It’s an old-style model that used to be a popular alternative to the managed fund before the emergence of index exchange-traded funds (ETFs).

Although ETFs are now by far the most popular way that ASX investors like to passively invest in the markets, LICs like Milton, Australian Foundation Investment Co.Ltd. (ASX: AFI) and Argo Investments Limited (ASX: ARG) still hold sway with a substantial chunk of the ASX investing world.

Soul Patts announced the proposed merger with Milton would be a scrip deal with around $6 per Milton share. It would see the two companies folded together to create an ~$10.8 billion investment company. We looked at what the investment portfolio of this new company might look like yesterday.

The Milton board has already given its unanimous consent for the deal to take place. Yesterday saw a dramatic reaction in the Milton share price to this deal, with Milton shares rising 15.77% by the end of the trading day. Today, Milton shares have put on another 3.45% at the time of writing to $6.

But the reaction in the Soul Patts share price yesterday was far more muted. Soul Patts shares were ‘only’ up 1.06% at yesterday’s close. Investors seemed to have changed their mind today though. On current pricing, the company is now up 8.7% from Monday’s closing price.

About the Soul Patts share price

At the current Soul Patts share price, the company has a market capitalisation of $7.87 billion, a price-to-earnings (P/E) ratio of 8.1 and a trailing dividend yield of 1.86%.

Soul Patts holds the distinction of being one of the only ASX shares to have never skipped a dividend payment in its long history. Additionally, it has also managed to increase its dividend every year since 2000 – an unrivalled streak on the ASX today.

The post Why are Soul Patts (ASX:SOL) shares surging 9% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Washington H. Soul Pattinson and Company 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 Washington H. Soul Pattinson and Company 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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Could the Wesfarmers Ltd (ASX: WES) share price be worth looking at right now?

Over the last month the Wesfarmers share price has risen by 6.4% and in the last six months it has risen by 13.6%.

Brokers have been paying attention to the rise of Wesfarmers. The diversified conglomerate recently held an investor day. The broker Macquarie Group Ltd (ASX: MQG) noted the company’s increased attention given to commercial customers with its acquisitions of Adelaide Tools and Beaumont Tiles.

Macquarie has given Wesfarmers a price target of $58.12. That suggests the broker doesn’t think the share price is going to move much over the next 12 months.

Investor day

At that investor day, Wesfarmers ran through key group segment strategies and a high level update on trading conditions and the performance.

It reminded investors that its primary objective is to provide a satisfactory return to shareholders.

There are a few different goals for the business that helps it achieve those returns. One is anticipating the needs of customers and delivering competitive goods and services. Another is looking after its team members, and providing a safe, fulfilling work environment.

Another factor is taking care of the environment. To this end, it’s looking to reduce its scope 1 and scope 2 emissions to net zero for its retailers by 2030 and industrials by 2050. Compared to FY20, it has managed to divert 12% of waste from landfill.

Wesfarmers has four different value-creating strategies for delivering on its shareholder returns goals.

It wants to strengthen existing businesses through its operating excellence and satisfying customer needs.

Wesfarmers seeks to secure growth opportunities through entrepreneurial initiatives.

The company aims to renew the portfolio through value-adding transactions.

It also wants to ensure sustainability through responsible long-term management.

Wesfarmers currently has three key priorities. It wants to develop a market-leading data and digital ecosystem. It wants to invest in platforms for long-term growth. The company also wants to accelerate the pace of its continuous improvement.

Recent trading

Wesfarmers’ retail businesses are now cycling the impacts of COVID-19 last year from mid-March.

Compared to 2019, sales are still up with “strong” growth. However, customer demand has remained resilient, but sales have been negative in some months for some businesses because of the strong comparable period last year.

Online growth has moderated as customer traffic to stores has increased, and online penetration has reduced but remains above pre-COVID levels.

Is the Wesfarmers share price a buy?

Whilst Macquarie has a price target of almost $60, Citi has a price target of $45. That suggests a potential decline of more than 20% over the next 12 months.

Citi pointed out that whilst the rollout of more tools stores will grow sales and earnings for the overall business, it is possible that it will eat into some of Bunnings’ sales of tools.

Until or unless Wesfarmers reveals acquisitions, Citi isn’t going to include that in its forecasts.

According to Citi, the Wesfarmers share price is valued at 28x FY21’s estimated earnings.

The post Is the Wesfarmers (ASX:WES) share price a buy today? appeared first on The Motley Fool Australia.

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• Wesfarmers (ASX:WES) share price hits new all-time high
• 4 ASX 200 shares making all-time record highs

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 owns shares of and has recommended Macquarie Group Limited and Wesfarmers 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 CSL Limited (ASX: CSL) share price is out of form on Wednesday.

At the time of writing, the biotherapeutics giant’s shares are down 2.5% to $293.10.

Why is the CSL share price under pressure on Wednesday?

Today’s weakness in the CSL share price appears to be due to a broker note out of Citi this morning.

According to the note, the broker has downgraded the company’s shares to a neutral rating but retained its $310.00 price target on them.

Based on the current CSL share price, this price target implies potential upside of 5.8% for its shares over the next 12 months. This potential return simply was not enough for the broker to maintain its buy rating.

What did Citi say?

The note reveals that Citi made the move on valuation grounds, believing that the plasma collection market recovery is now fully priced in.

It commented: “We move CSL to Neutral (from Buy) given the outperformance of the stock since March. We remain 15% ahead of consensus for FY23E, and believe that the plasma collection market will normalize this year. Our rating change is purely valuation based.”

It is worth noting that Citi does see some upside risk for the CSL share price. This is from the CSL112 phase III trial result. The broker explained: “Risk to the upside remains if the CSL112 phase III trial result due at the end of CY21 is positive.”

This clinical trial is evaluating the efficacy and safety of CSL112 for the reduction of early recurrent cardiovascular events following an acute myocardial infarction (MI).

What is CSL112?

CSL112 is a novel apolipoprotein A-I infusion therapy that has been shown to have an immediate and significant impact on the ability to remove cholesterol from arteries. The trial aims to enrol more than 17,000 patients from approximately 1,000 medical centres across the world.

CSL notes that cardiovascular disease is the leading cause of death globally, with an estimated 800,000 acute MIs occurring each year in the United States alone. Furthermore, patients who survive an acute MI are at high risk of experiencing early recurrent cardiovascular events. The majority of which occur in the weeks and months following the initial event.

As a result, CSL112 could be a very important and lucrative therapy if all goes to plan.

The post CSL (ASX:CSL) share price falls on broker downgrade 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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wisr Ltd (ASX: WZR) share price is in positive territory during mid-afternoon trade. This comes after the non-bank lender announced an update to its Share Purchase Plan (SPP).

At the time of writing, Wisr shares are swapping hands for 25 cents, up 2.04%.

Wisr completes SPP

Wisr shares are climbing today following the announcement of a successfully completed Share Purchase Plan (SPP).

In a statement to the ASX, Wisr advised it has raised $5 million to accelerate its loan book growth strategy.

The SPP received overwhelming support from eligible shareholders, totalling more than $10 million invalid applications. This is double the size of the tabled offer put towards retail investors.

As a result, Wisr will scale back the applications based on the shareholding balances of applicants at the record date. All eligible applicants, however, will not be guaranteed a minimum quantity of Wisr shares. All valid submissions will be scaled backed proportionally to around 46% of the application value.

In total, roughly 20 million new ordinary shares will be issued under the SPP after rounding and scale back is applied. The offer price was listed as the same price as the placement at 25 cents apiece.

Wisr recently completed a placement to sophisticated and institutional investors, raising $50 million.

The SPP shares are expected to be allotted to investor accounts next Tuesday, 29 June 2021.

Wisr CEO, Anthony Nantes commented:

We would like to thank our shareholders for their ongoing support and endorsement of the Company’s business model and look forward to delivering on the strategic initiatives which are now well- funded.

Wisr share price summary

The Wisr share price has jumped by over 20% since this time last year. The company’s share price has recorded an even better result in 2021, up almost 30%.

Wisr shares reached a multi-year high of 34 cents late last month, before some profit taking occurred.

On valuation grounds, Wisr has a market capitalisation of around $324 million, with approximately 1.3 million shares outstanding.

The post Why the Wisr (ASX:WZR) share price is edging 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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