Tag: Motley Fool

  • Leading brokers name 3 ASX shares to buy today

    ASX shares Business man marking buy on board and underlining it

    With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

    Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

    Goodman Group (ASX: GMG)

    According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this integrated commercial property company’s shares to $22.10. This follows the release of Goodman’s third quarter update last week. Citi believes the update highlights improving operating conditions, particularly given how its work in progress has increased ahead of expectations. In addition to this, it notes stronger rental growth and a sky high occupancy rate. Overall, it suspects that Goodman could be positioned to outperform the market’s growth expectations over the medium term. The Goodman share price is fetching $19.45 today.

    Nearmap Ltd (ASX: NEA)

    A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $3.30 price target on this embattled aerial imagery technology and location data company’s shares. According to the note, the broker doesn’t see legal threats as a risk to its earnings power, only to short term liquidity. Overall, it still feels that the company, and particularly its US business, is being undervalued by the market. As a result, it is happy to hold firm with its overweight rating. The Nearmap share price is trading at $1.80 today.

    ResMed Inc. (ASX: RMD)

    Analysts at Credit Suisse have retained their outperform rating and $29.00 price target on this sleep treatment focused medical device company’s shares. According to the note, the broker believes ResMed’s new AirSense 11 CPAP device could be a key driver of growth in the coming years. It suspects that around a fifth of machines bought between FY 2015 and FY 2019 are likely to upgrade to the new technology. In light of this, it has increased its estimates accordingly. The ResMed share price is fetching $25.15 on Monday afternoon.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. and ResMed Inc. 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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  • Galilee (ASX:GLL) share price jumps on ‘encouraging’ gas results

    Natural gas plant engineers using laptop

    The Galilee Energy Ltd. (ASX: GLL) share price is rising today after the company reported its Glenaras Gas Pilot Operations Update.

    Galilee shares are trading close to 5% higher at 85 cents per share, up 124% this past year.

    Galilee is a Brisbane-based energy company engaged in exploring and developing coal seam gas in the Galilee Basin near Longreach in Queensland. It also has gas exploration activities in the USA and Chile.

    Galilee’s gas operation results

    The gas producer reported positive pilot water production results, pumping out 19,000 barrels of water per day at its 100% owned Glenaras multi-well pilot project.

    Galilee is utilising a pump enhancement workover programme (PEP) to increase water production. Although it’s still not 100% operational, it’s already reportedly increased the water rate by 30%. The PEP works by installing larger capacity well pumps, among other improvements.

    The company says that despite the “early stage of production optimisation”, its aggregate natural gas rate from the Glenaras pilot program is increasing and is currently at over 60 thousand standard cubic feet per day. This is a 20% increase in production over the last reporting period for the program.

    Galilee pumping the gas

    Today’s report is a welcome update for investors and the Galilee share price. The company has been working ahead of schedule after its shares fell last month on news that these pump update works would shut down its well operations until mid-May.

    Galilee also noted that gas production is now underway across three different vertical wells. The company noted that these results were all “encouraging given that not all wells are fully commissioned or at maximum drawdown yet.”

    Galilee is now planning to steadily increase its pumping rates at all six vertical wells in the Glenaras project to maximise drawdown rates.

    The company says its second pivot irrigation system, “an important component of the requisite water handling capacity”, has also been successfully commissioned and is now fully operational.

    Galilee share price snapshot

    The Galilee share price boomed a whopping 50% on its last positive Glenaras gas project update on 26 March.

    The company has been a solid gainer over the past 12 months. However, despite the Coalition government’s promise of a gas-led economic recovery, the Galilee share price is still well down on its 2019 highs of over $1.25 per share.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    Motley Fool contributor Lucas Radbourne-Pugh 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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  • 2 high-growth, quality ETFs to buy

    green etf represented by letters E,T and F sitting on green grass

    There are a handful of high-growth, quality exchange-traded funds (ETFs) that could be worth looking into.

    ETFs that have a significant weighting to certain industries have the ability to generate stronger returns for investors.

    These two in-particular could be good options to think about:

    Betashares Nasdaq 100 ETF (ASX: NDQ)

    This ETF is about investing in 100 of the largest non-financial businesses listed on the NASDAQ in the US. Many of these businesses are the ones at the forefront of the new economy.

    What’s the benefit of this investment? BetaShares explains that with its strong focus on technology, the Betashares Nasdaq 100 ETF provides diversified exposure to a high-growth potential sector that is under-represented in the ASX share market.

    The types of major businesses you get exposure to with this ETF includes: Apple, Microsoft, Amazon, Tesla, Alphabet, Facebook, Nvidia and PayPal.

    All of the above names are global earners and are usually among the strongest in the world in their respective operating divisions.

    However, there’s more to the 100 names than just those huge tech names. These smaller businesses are also global leaders such as Adobe, Cisco Systems, Netflix, Broadcom, Costco, Texas Instruments, Qualcomm, Intuit, Intuitive Surgical and Advanced Micro Devices.

    It has an annual management fee of 0.48% and no performance fees, which is attractive for the strength of the portfolio that it provides and the net returns it has been generating. Since inception in May 2015, Betashares Nasdaq 100 ETF has made net returns of 21.6% per annum.

    VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

    This ETF gives investors concentrated exposure to some of the world’s leading video gaming business. The gaming world has been generating long-term growth and this has sent the share prices of many of the constituents of this ETF to higher levels.

    The video gaming sector has seen an average annual growth rate of 12% since 2015, whilst e-sports revenue has grown by an average of 28% per year since 2015.

    As VenEck points out, the social ecosystem around video gaming illustrates demand for online interactive entertainment.

    The average age of e-sports enthusiasts is under 30, which suggests there’s scope for a bigger audience. E-sports has created new potential revenue streams including game publisher fees, media rights, merchandise, ticket sales and advertising.

    There’s a total of 25 businesses in this ETF’s portfolio. The biggest 10 positions account for over 60% of the portfolio, those names include: Nvidia, Tencent, Sea, Advanced Micro Devices, Nintendo, Activision Blizzard, Netease, Electronic Arts, BiliBili and Nexon.

    The US may have a fairly large allocation at 38.6% of the portfolio, but there’s also a heavy Asian influence as well. Japan (20.6%), China (18.5%), Singapore (7.2%) and South Korea (5%) are the next countries with the biggest allocations.

    The index that this ETF aims to track has been performing very well – over the last three years it has returned an average of 32.4% per annum.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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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  • Why a2 Milk, American Pacific Borate, Appen, & Incitec Pivot are tumbling lower

    A stressed man with his hands on head trying to work out a major systems failure

    The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. At the time of writing, the benchmark index is up 0.95% to 7,148.8 points.

    Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

    A2 Milk Company Ltd (ASX: A2M)

    The A2 Milk share price has crashed 12% to $6.14. Investors have been selling the fresh milk and infant formula company’s shares after it downgraded its FY 2021 guidance for the fourth time. The company now expects revenue of NZ$1.2 billion to NZ$1.25 billion with EBITDA of NZ$132 million to NZ$150 million. The latter will be down 73% to 76% year on year. This was driven by sustained weakness in the daigou channel and a massive NZ$103 million to NZ$113 million inventory provision.

    American Pacific Borates Ltd (ASX: ABR)

    The American Pacific Borates share price is down 32% to $1.58. This morning the mineral exploration company announced that a decision has been made to defer construction of Phase 1A of the Fort Cady Borate Mine. Instead, the company intends to focus on a larger borate operation and production of borate specialties in combination with sales of boric acid.

    Appen Ltd (ASX: APX)

    The Appen share price has continued its slide and is down a further 6% to $11.56. Investors have been selling the artificial intelligence (AI) data services company’s shares following the release of a presentation last week. While management spoke positively about its position in the industry, it also revealed that its customers are changing the ways in which they develop projects. The failure of management to comment on its guidance for FY 2021 also hit investor sentiment.

    Incitec Pivot Ltd (ASX IPL)

    The Incitec Pivot share price has sunk over 9% to $2.44. Investors have been selling the industrial chemicals company’s shares following a further update on the Waggaman ammonia plant. According to the release, the plant restarted again in April as expected. However, after operating successfully at nameplate capacity for two weeks, the plant unexpectedly tripped upon the failure of a vibration probe. This was then followed by a coupling failure on the refrigeration compressor. The additional impact to FY 2021 EBIT is estimated to be between $33 million and $42 million.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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    *Returns as of February 15th 2021

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    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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Up 9%, the Matsa (ASX:MAT) share price is booming today. Here’s why

    Monadelphous share price rio tintoA happy miner in front of a massive drilling rig, indicating a share price lift for ASX mining companies

    The Matsa Resources Limited (ASX: MAT) share price is surging today after the company started drilling at its Devon and Lake Carey gold projects.

    Matsa shares are trading 9.2% higher at 8.3 cents at the time of writing, recovering on losses since late April.

    Matsa engages in mineral exploration, focused on gold, nickel, iron, and copper ore assets across Australia and Thailand. Lake Carey is in Western Australia’s Goldfields-Esperance region.

    Matsa’s new drilling project at Lake Carey

    Matsa has started reverse circulation drilling at its Devon and Lake Carey projects, boring holes down to 4,000 metres on the first of six overall drilling targets. The company is looking for additional gold mineralisation to “grow its resource base” in the Devon area.

    The Matsa share price has been struggling with no recent impressive gold assays at Lake Carey.

    These are additional drilling targets in the Devon project after what the company deemed “highly successful” 2020 drilling programs. The company noted three days ago that soil sampling defined new targets at Devon.

    The company said this drilling program was designed to “test the mineralised structures” as interpreted from Matsa’s recent surveys and sampling projects. The targets were defined from soil and rock chip geochemistry and geological mapping. 

    About Matsa’s Lake Carey project

    The Devon region is just one part of the overall Lake Carey Gold Project, comprising Matsa’s Red October, Fortitude and Devon mines. The area contains a “significant number of historic gold workings”, according to the company.

    Matsa has focused recent surface drilling on the Devon Pit, Olympic and Hill East prospects. In 2020, the company announced high-grade drilling results from its exploration at the underground Red October gold mine, which saw the Matsa share price rise above 16 cents. However, it has fallen steadily since then.

    The company is currently planning to build its own processing plant in the region to lower eventual pipeline costs.

    Matsa share price snapshot

    The Matsa share price has been on a downwards trajectory since the company recorded its high-grade gold results nearly a year ago. It hasn’t come close to recording highs near its 33 cent price back in 2013 in the past 6 years and is currently at a decade-low price point. 

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    Motley Fool contributor Lucas Radbourne-Pugh 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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  • E2 Metals (ASX:E2M) share price storming a huge 26% higher today

    businessman riding rocket on line graph

    The E2 Metals Ltd (ASX: E2M) share price is surging today after the company announced Emilia scout drilling had returned high-grade silver results.

    E2 Metals shares are trading a crazy 26.92% higher at 33 cents at the time of writing.

    E2 Metals is an Australian exploration and development company. It holds interests in the Cobar Project and Santa Cruz Projects. The company operates through two segments: Australian projects and Argentinian projects.

    E2 Metal’s high grade silver mining results

    E2 Metals announced that its scout drilling at its Emilia silver and gold mining project returned high grade results at shallow, open-pit mining depths, sending the E2 Metals share price booming.

    Scout drilling within the Emilia prospect defined a new zone of shallow high-grade silver mineralisation with lesser gold, including 9.5 metres at 375 grams per tonne (gpt) of silver (Ag) and 0.4 metres of gold (Au) from 49 metres deep.

    This also includes two metres at 630gpt Ag and 0.5gpt Au from 49 metres deep.

    The company reports that this mineralisation is within a new structure, untested by the previous drilling located five kilometres north of the project area. E2 Metals says the results highlight the “potential for further high-grade mineralisation” along the Veta Blanca Emilia vein corridor with a measured strike of 2.5 kilometres.

    The current high grade mineralisation is open in all directions, and E2 Metals says it will be “immediately followed up” with further drilling. The company proceeded to suggest that these results “further confirm Conserrat [the region] to be an exciting new epithermal vein district located within a world-class gold and silver mining province.”

    E2 Metals management comments

    E2 Metals Managing Director Todd Williams welcomed the results:

    The recent results from Emilia are significant not only because it is a new discovery for the project, but it also underpins the potential for high-grade mineralisation elsewhere within the Veta Blanca-Emilia vein corridor that extends for over 2.5 kilometres strike and remains poorly tested by drilling.

    Importantly, mineralisation is hosted within a ‘blind’ structure that is adjacent to the main topographic ridge under shallow colluvium cover, confirming what we already suspected – the best mineralised veins at Conserrat may not be the most obvious ones.

    E2 Metals share price snapshot

    The E2 Metals share price is on a tear today but is well below its highs of over 70 cents set in October last year.

    The E2 Metals share price surged in October, becoming one of the month’s best small cap performers, but until today, it had fallen back to where it was before the price surge.

    The company’s share price has still risen a significant 135%  over the past 12 months.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    Motley Fool contributor Lucas Radbourne-Pugh 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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  • All time high! Here’s how much ASX investors have made on BHP shares

    A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends

    The BHP Group Ltd (ASX: BHP) was been one of the S&P/ASX 200 Index (ASX: XJO)’s best blue chip performers over the past few months, and indeed, year or two. BHP shares are today climbing to new all-time highs, up 3% and trading at $51.59 at the time of writing. That’s pretty much at the company’s new historical high watermark of $51.75 that we saw earlier today.

    So what’s driving BHP to these new heights? Well, two words pretty much sum it up: commodity prices. The prices of the raw materials that BHP extracts and processes have been on an absolute tear in recent months. Iron ore is now well above the historically high level of US$200 a tonne, trading at US$209 a tonne at the time of writing. BHP’s largest operations are in this space.

    So obviously higher prices lead to dramatically fatter profit margins for the miner. BHP remains one of the lowest-cost producers of iron ore in the world. That means almost all of these extra profits will flow straight to the company’s bottom line. What’s more, copper prices are also exploding. As my Fool colleague Brendon covered this morning, copper futures are now at an all-time high of US$4.75 per pound. Copper is not BHP’s largest operation, but it still stands to benefit from these highs.

    High commodity prices equal high BHP share price returns

    That puts the Big Australian up 8.3% in the past week alone, 12% in the past month, 20% year to date, and 64% over the last 12 months. BHP is also up close to 100% since the lows we saw in March last year, and 185% over the past 5 years. All of those returns don’t include dividends either, which BHP has, both historically and recently, been extremely generous with.

    They also don’t include the 2015 spin-off of South32 Ltd (ASX: S32). At the time of this spinoff, BHP shareholders received 1 share of South32 for every share of BHP held. The South32 share price has not done quite as well as BHP but is still up more than 30% since the spin-off, and close to 60% in the past year.

    So if an investor bought $10,000 worth of BHP shares last year, how much would they be worth today? Well, $10,000 would have picked you up roughly 317 shares this time last year. Those 317 shares would today be worth about $16,362.50. Investors also would have received two dividends over the past year as well, equating to $2.07 per share. That would be worth an extra $655 in dividend returns as well (plus some franking credits to boot). In summary, it has been a very good year to own the Big Australian.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    Motley Fool contributor Sebastian Bowen 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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  • Why is the Artemis Resources (ASX:ARV) share price in limbo today?

    The Artemis Resources Ltd (ASX: ARV) share price isn’t doing much today. Artemis shares are stuck at 9.6 cents a share this afternoon. And that’s where they are going to stay, at least for a while.

    We received a market announcement this morning, just before the market open, on the matter. Artemis announced that its shares would remain in a trading halt until “the earlier of an announcement in relation to a capital raise or 12 May 2021″.

    Why? Here’s what Artemis told investors:

    1. The trading halt is necessary as the company is undertaking a bookbuild in relation to the capital raising.
    2. The company wishes the trading halt to last until it announces the capital raising, or this Wednesday, whichever is the earlier.

    There’s no official confirmation of how the capital raise will operate or what Artemis will use the funds for. But a report in the Australian Financial Review (AFR) today cites sources that have floated a placement price of 10 cents a share for some institutional investors that operate in the small-cap resources space. It’s worth pointing out that a price of 10 cents a share is above the price the company last closed at.

    The report also states that the cash raised is earmarked to go towards the Carlow Castle project and Artemis’ Paterson Central gold project in WA. If that proves the case, it would seem that Artemis plans to quickly build on its initial success at Carlow. However, we will have to wait for official confirmation from Artemis to be sure of these details.

    About the Artemis Resources share price

    An ASX gold and copper miner, Artemis has had a few months of relatively flat share price movements since it moved up more than 230% between June and August last year. In fact, the company is down roughly 20% year to date, and more than 12% in the past week. That’s after the company rallied 14% late last month on the back of a quarterly production update, though.

    This update informed the market that testing at the company’s Carlow Castle resource area in Western Australia had yielded encouraging signs. Drilling at the site produced test results indicating gold concentrations of 4.36 grams per tonne of gold at a depth of 5 meters. The market was initially very excited about these results, but the sentiment seems to have cooled in the days since. It will be interesting to see how the market reacts when Artemis shares resume trading.

    At the current (and frozen) share price, Artemis Resources has a market capitalisation of $104.17 million.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    Motley Fool contributor Sebastian Bowen 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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  • Is the Macquarie (ASX:MQG) share price in the buy zone after its FY21 results?

    origami paper fortune teller with buy hold sell and dollar sign options

    The Macquarie Group Ltd (ASX: MQG) share price has been relatively flat following its FY21 results announcement on Friday. Its shares have edged slightly lower, currently down 0.60% for the session, at $157.45. 

    Big brokers have digested Macquarie’s results and come up with new target prices for where the bank might go next. 

    Big brokers run the ruler for the Macquarie share price

    Bulls 

    Morgan Stanley retains its overweight rating for Macquarie shares after its FY21 profit exceeded expectations. The broker was impressed by the diversity of growth options for the bank, highlighting the strong performance of its private markets segment and tailwinds in renewables and infrastructure investments. Its target price edged higher from $172 to $175.

    Macquarie’s results also beat Morgans estimates. The broker note highlighted the strong performance in its commodities and global markets division, which offset the weaker or flat performing divisions.  Looking ahead, Morgans notes that management observes a flat FY22 profit outlook with positive results from Macquarie Capital and the bank to be offset by profit normalisation in its commodities divisions. Morgans retained an add rating while it increased its target price from $162.30 to $171.

    Neutral 

    Credit Suisse upgraded its FY22 earnings estimates by 2% due to lower expenses and higher gains from equity investments. The broker also highlighted the positive performance from its commodities trading division and an increase in fees. 

    Despite the positive commentary coming out of Credit Suisse, the broker retained a neutral rating with a $150 target for the Macquarie share price. 

    Bears 

    Citi remained sell rated on the Macquarie share price despite acknowledging a strong second-half performance.  The broker observes that the company has recovered back to its FY19 profit levels of $3 billion. However, it does not expect growth beyond the $3 billion level until FY24.

    Citi believes that Macquarie shares are adequately valued and expectations appear stretched in the near term. The target price was increased from $125 to $140 but represents the lowest target price amongst the broker updates.  

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Motley Fool contributor Kerry Sun 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 ALS (ASX:ALQ) share price is flying on news of debt refinancing

    A plumber gives the thumbs up, indicating a positive share price in ASX plumbing and building

    The ALS Ltd (ASX: ALQ) share price has gained 4% today following news the company plans to refinance its debt facilities.

    At the time of writing, ALS shares are swapping hands for $11.06, up from their previous closing price of $10.62.

    ALS is a global testing, inspection and certification company that works within several sectors, including agriculture, pharmaceuticals and construction.

    Let’s take a closer look at the news driving the ALS share price today.

    ALS debt refinancing

    ALS announced today that it has agreed to refinance its existing bank debt with new, multi-currency revolving facilities valued at $US350 million.

    The company describes the banks involved in the refinancing activities as “geographically diverse”.

    The mix of international banking organisations includes the ASX’s Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corporation (ASX: WBC).

    Also involved in the refinancing are the Hong Kong and Shanghai Banking Corporation, JP Morgan, Bank of America and Mizuho Bank.

    According to ALS, the new facilities will provide a strong level of liquidity, supporting the company’s growth strategy and global funding requirements.

    The company also says the debt facilities will support its forex strategy. The strategy will see ALS align its debt currencies with the operating cash flows of its businesses.

    The refinancing will increase ALS’ average debt maturity profile to 6.6 years – 19 months longer than it previously was.

    ALS share price snapshot

    Today’s gains have boosted the ALS share price performance on the ASX so far this year.

    After reaching its highest close of the year so far – $11.39 in mid-February – the company’s share price performed poorly for a number of weeks, dropping to close at $9.45 by 4 March. Since then, it’s recovered well, aided by today’s gains.

    Currently, the ALS share price is up 13% year to date and has lifted 71% over the last 12 months.

    The company has a market capitalisation of around $5.1 billion, with approximately 482 million shares outstanding.

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    Motley Fool contributor Brooke Cooper 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.

    The post The ALS (ASX:ALQ) share price is flying on news of debt refinancing appeared first on The Motley Fool Australia.

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