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The Telstra Corporation Ltd (ASX: TLS) share price is having a rather undecided day today. After making a new 8-month high last week of $3.48, Telstra shares have been sliding ever since. The ASX’s largest telco opened this morning at $3.37 after going as low as $3.36 yesterday. At the time of writing, the Telstra share price is sitting at $3.40, up 1.04% for the day, but down close to 2.5% on last week’s high watermark.

So is this a buying opportunity for Telstra shares?

Telstra has been enjoying something of a renaissance for ASX investors of late. One of the catalysts for this share price recovery was the announcement last month of a new structural separation for the telco. Under the plan, Telstra will legally and regulatorily separate into four divisions by December this year. They will be InfraCo Towers, InfraCo Fixed, ServeCo and Telstra International. These divisions will house a component of Telstra’s business, while all still coming under the umbrella of the Telstra Group on the ASX. Since this announcement, Telstra shares are up close to 6%.

A recent article in the Australian Financial Review (AFR) argues that this split is accretive for value. It quotes Gaurav Sodhi of Intelligent Investor, who has given Telstra a $5 share price target going forward. This is partially a result of the split, which he states will help the markets recognise that “infrastructure-style assets that can generate stable, recurring revenues, resulting in a far higher valuation than the present [Telstra] share price”.

The report also asks the opinion of Will Granger of Airlie Funds Management. Mr Granger also thinks there is considerable value in the plans for a split. As an example, he notes that mobile tower companies can trade at an earnings before interest, tax, depreciation and amortisation (EBITDA) multiple between 21-27. Telstra currently trades at an EBITDA multiple of roughly 8.

Is Telstra a buy today?

Granger and Sodhi aren’t the only investors bullish on Telstra today. According to CommSec, investment bank and broker Goldman Sachs has a ‘buy’ rating on Telstra shares as of 26 March. Goldman’s 12-month Telstra share price target is $4 a share, supported by “the potential upside in its infrastructure assets”.

At the current share price, Telstra has a market capitalisation of $40.44 billion. Its dividend yield (including special dividends) is currently sitting at 4.71%, or 6.72% grossed-up with Telstra’s full franking.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• Beat low interest rates with these top ASX dividend shares
• This underperforming ASX large cap is sitting on a ~10% dividend yield
• Telstra (ASX:TLS) share price falls amid overseas expansion talks
• What’s happening with the Pentanet (ASX:5GG) share price today?

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra 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 Experience Co Ltd (ASX: EXP) share price is climbing higher today. At the time of writing, shares in the tourism operator are trading for 28 cents – up 5.66%. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.18% lower.

Today’s price growth comes as the company announced its latest acquisitions.

Let’s take a closer look at today’s announcement and what it means for the Experience Co share price.

What’s affecting the Experience Co share price?

In a statement to the ASX, Experience Co said it had acquired the business assets of Wild Bush Luxury and The Maria Island Walk. The company believes the purchases will allow it to expand into ‘premium adventure’.

The purchase of Wild Bush Luxury will also see its founder, Charles Carlow, be in the employ of Experience Co. Wild Bush Luxury owns the Arkaba Walk and Homestead in the Flinders Range of South Australia and the Bamurru Plains in the Kakadu region of the Northern Territory. The Arkaba Homestead and Bamurru Plains are both members of Luxury Lodges of Australia.

The Maria Island Walk is located on its namesake, the Maria Island of Tasmania. Unlike Carlow, the founder of Maria Island Walk, Ian Johnstone, will not join Experience Co but rather retire.

In its statement, Experience Co said it believes its expansion into premium adventure will be fruitful in the short-term, as the COVID-19 pandemic subsides but international borders remain closed. If that is the case, it will be good news for the Experience Co share price.

Both purchases will be completed by June 2021 and cost $5.3 million, payable until April 2023. The purchase is being funded using existing cash reserves.

Stakeholder commentary

Experience Co CEO John O’Sullivan said of today’s announcement:

During my time as Managing Director of Tourism Australia, I witnessed first-hand the increased demand by Australians and international visitors for our country’s premium tourism experiences. We are delighted to welcome Wild Bush Luxury and The Maria Island Walk.

Wild Bush Luxury is an established business in a category with strong fundamentals and exciting growth potential that we look forward to extending to The Maria Island Walk. Domestic, nature-based tourism is going to be a key focus for our business into the future particularly in the near term with continued uncertainty on international borders.

Carlow added

I am delighted to be joining the Experience Co portfolio and working with the team to build out a premium adventure category through Wild Bush Luxury with a focus on conservation and nature-based experiences.

It is a great time to join Experience Co, with record booking levels ahead for the upcoming season and further opportunity when international markets open up. The shared values of a passion for adventure experiences, environmental sustainability and disciplined capital management are a natural fit and the right foundation to grow the business into the future.

Experience Co share price snapshot

Over the past 12 months, the Experience Co share price has increased 194.74%. Its current share price is only just below its 52-week record of 29 cents a share.

Experience Co has a market capitalisation of $152.8 million.

More reading

• Argosy (ASX:AGY) share price climbs on Rincon construction update
• Why Accent, Bank of Queensland, Freelancer, & Zip shares are pushing higher
• Westpac (ASX:WBC) reports ‘extraordinary’ Australian consumer confidence
• Treasurer outlines federal budget focus as IMF upgrades Australian outlook
• Cathie Wood’s ARK Invest only owns 4 Dow stocks, and they aren’t what you think

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of EXPERNCECO FPO. 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 Argosy Minerals Limited (ASX: AGY) share price is climbing today following a construction update at the Rincon Lithium Project.

At the time of writing, the lithium miner’s shares are swapping hands for 9.7 cents apiece, up 4.30%.

Construction update

Argosy shares are in the green today. This follows a positive investor sentiment on the company’s progress to date.

In its announcement, Argosy advised that 10% of construction works have been completed to bring the Rincon Lithium Project online. The development of the modular 2,000 tonnes per annum of lithium carbonate production plant is currently on schedule. Argosy is also targeting to achieve the first commercial production of lithium from mid-2022.

Argosy holds a 77.5% interest in the Rincon project, located in Salta Province, Argentina. The mine is situated within the ‘lithium triangle’ – the world’s dominant lithium production source.

Argosy noted that major works consisting of earth-moving equipment, site construction of the plant, and associated installations have advanced. As such, Argosy also provided a snapshot of the current progress:

• 8% of earthworks/land movements completed.
• 8% of site works completed (site camp/accommodation, laboratory and office, and other works).
• 16% of the brine system completed (pumping station and plant settling ponds).
• 16% of the process plant completed (plant equipment acquisition and plant warehouse).
• 3% of utilities and associated services (vapour system, communication system and ancillary services).
• 3% plant commissioning works completed (raw materials acquisition and team development works).

Additionally, the entire build stages are expected to run throughout the current calendar year. Thus, completion will be around early 2022.

Once the construction phase is finished, Argosy will begin plant commissioning, test-works, and ramp-up over a 4-month period. Should everything go smoothly, the company will then start production operations.

Management commentary

Argosy managing director, Jerko Zuvela touched on the company’s latest developments, saying:

The Company’s Puna operations team have started positively with the 2,000tpa lithium carbonate production operation construction and development works.

We are excited as we continue our works to transform Argosy into a battery quality lithium carbonate producer and cashflow generator, and further progress toward the 10,000tpa enlarged commercial scale development. We look forward to a significant near-term growth phase with increasing development activity at the Rincon Lithium Project.

Argosy share price summary

In the last 12 months, the Argosy share price has gained around 130%, with year-to-date up 20%. The company’s shares rose strongly at the start of the calendar year, before profit taking took hold. Nowadays, Argosy shares have been moving sideways since the start of March.

On valuation grounds, Argosy has a market capitalisation of roughly $121 million, with 1.25 billion shares on issue.

More reading

• Why Accent, Bank of Queensland, Freelancer, & Zip shares are pushing higher
• Westpac (ASX:WBC) reports ‘extraordinary’ Australian consumer confidence
• Treasurer outlines federal budget focus as IMF upgrades Australian outlook
• Cathie Wood’s ARK Invest only owns 4 Dow stocks, and they aren’t what you think
• Genesis Energy (ASX:GNE) share price falters on third quarter update

Motley Fool contributor Aaron Teboneras 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is dropping lower. At the time of writing, the benchmark index is down a disappointing 0.45% to 7,033.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Accent Group Ltd (ASX: AX1)

The Accent share price is up 3.5% to $2.54. This is despite there being no news out of the footwear retailer today. However, earlier this month analysts at Bell Potter spoke positively about the company. According to the note, its analysts have put a buy rating and $2.65 price target on Accent’s shares.

Bank of Queensland Limited (ASX: BOQ)

The Bank of Queensland share price has pushed over 2% higher to $9.11. This follows the announcement of a correction to its earnings per share figures from its half year results earlier this month. In addition to this, this morning Morgan Stanley upgraded the bank’s shares to an overweight rating with a $10.00 price target.

Freelancer Ltd (ASX: FLN)

The Freelancer share price has surged 6% higher to 81.5 cents. Investors have been buying the freelancing marketplace provider’s shares following its first quarter update. Freelancer reported Gross Payment Volume of US$192.9 million for the quarter. This was a record quarterly high and up 39% on the prior corresponding period.

Zip Co Ltd (ASX: Z1P)

The Zip share price has risen 2% to $9.15. This morning rival Afterpay Ltd (ASX: APT) released its third quarter update and advised that it was looking into a US listing. There have been rumours swirling around that Zip was planning to do the same. Doing so could open the company up to US fund managers and give its greater access to capital markets. Investors appear to believe Zip will follow suit in the near term.

More reading

• Why the Bank of Queensland (ASX:BOQ) share price is charging higher today
• Afterpay (ASX:APT) share price: Is a US listing a game changer?
• ASX 200 down 0.4%: Afterpay delivers stellar Q3 growth, Rio Tinto Q1 update
• Declining birth rates could threaten the A2 Milk (ASX:A2M) share price
• This major US bank has bought 6% of Zip (ASX:Z1P) shares

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Accent Group and Freelancer 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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Australia’s economic growth is vastly outpacing its wealthy global counterparts, with the economy set to grow at its fastest rate since 2007 this year, and Australian consumer confidence hitting decade-highs.

Westbank Banking Corp (ASX: WBC) has just released its Westpac-Melbourne Institute Index of Consumer Sentiment report, which tracks Australian consumer confidence and spending habits.

It shows consumer confidence increased by 6.2% to 118.8 in April from 111.8 in March, which Westpac’s Chief Economist Bill Evans calls “an extraordinary result”. 

Australians confident and eager to spend

Evans outlined that Westpac’s confidence index is now at its highest level since August 2010 when Australia’s post-GFC rebound and mining boom were in full swing.

Expectations for the economy are also up strongly and back near those 2009-10 record levels. The ‘economy next 12 months’ sub-index is up 10.3% and the ‘economy next 5 years’ sub-index is up 4.1%.

Westpac’s index tracks several sub-indexes that track confidence in various industries and also specify consumer confidence on various spending habits.

The industry breakdown shows those employed in the ‘recreational services’ and hospitality industries showed very big sentiment gains, up 23% and 14% respectively. There were also big sentiment gains among those working in construction (+17.3%), including tradies (+18.5%) and labourers (+14.6%).

Evans’ report also highlights the strong housing market “more generally, is also likely to be boosting confidence.” Auction clearance rates are near 80% and dwelling prices have lifted by 5.8% nationally since the beginning of the year.

Westpac’s view on potential interest rate rises

Evans also speculated on why the Reserve Bank may be hesitant to raise interest rates, despite Australia’s strong economic performance.

When the Index was last at these levels, in August 2010, the Reserve Bank had increased the cash rate by 150 basis points to 4.5% from its GFC low of 3% in September 2009. That sharp increase in rates is likely to have contributed to the Index falling 25% over the following year.

No doubt the Reserve Bank will be aware of that period and continue to tread carefully with the cash rate.

Caution for overly optimistic expectations

While on the surface, Westpac’s consumer confidence index is cause for some celebration, Evans also noted areas for caution heading forward.

He noted that confidence in the jobs market appears to have plateaued. Westpac’s survey also includes important insights into the shape of the recovery. Housing affordability appears to be weighing on homebuyer sentiment, with house price growth hitting 32-year highs. 

Big-ticket item spending intentions – where the index asks consumers how confident they are in making large household purchases – are not nearly as buoyant as the overall index (down more than 2% against the last quarter).

More reading

• Treasurer outlines federal budget focus as IMF upgrades Australian outlook
• NAB (ASX:NAB) share price falling on credit restriction calls
• The Westpac (ASX:WBC) share price is the best performing of the big four banks in 2021
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• Which big 4 ASX bank is going to pay the biggest dividend in FY21?

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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Treasurer Josh Frydenburg has outlined the government’s focus for the upcoming federal budget. This comes amid a stronger-than-expected economic recovery following the COVID-19 pandemic. 

The S&P/ASX All Ordinaries Index (ASX: XAO) is up 5% in 2021 and Australia’s unemployment rate has fallen to 5.6%. This has led the IMF to upgrade its outlook for Australian economic growth to 4.5% this year. It also lists expected inflation at 1.7%. 

The ABS data showed Australia’s workforce participation rate increased to 66.3%, while overall employment increased to 13,077,600. Unemployment, which has long been a dragging force on wage growth, also decreased to 7.9%.

What to expect from the federal budget

The ramifications of finishing the government’s JobKeeper wage subsidy scheme on 28 March are still to be seen. However, Australia’s economic recovery has exceeded all expectations.

The Government is expected to use Australia’s strong economic performance and record-low global interest rates to continue funding increases to skills acquisition and job creation programs.

It plans to lower taxes by over $50 billion over the forward estimates, including by $9 billion in 2020‑21 and $32 billion in 2021‑22. The government also recently extended its $4 billion JobMaker hiring credit program, as Australia’s real GDP levels exceeded pre-pandemic levels.

Frydenberg also acknowledged increased funding for the aged care sector after a royal commission found extensive problems in access, transparency and training across the industry.

Frydenberg said on 3AW radio:

In this budget, we will have an emphasis on skills, on meeting the workforce shortages, age care is going to be a major feature as well

We are going to focus on the essential services that we can guarantee as well as maintain the wonderful momentum in the jobs market.

The federal budget is likely to be introduced next month.

ASX benefits from Australia’s economic recovery

Some of the ASX’s biggest companies have profited from favourable economic conditions. High iron-ore prices have been benefitting Australia’s largest mining shares. Furthermore, the BHP Group Ltd (ASX: BHP) share price up 11.5% in 2021.

Meanwhile, a record housing boom has led to strong growth in banking shares. Big-four leading Westpac Banking Corp‘s (ASX: WBC) share price up by 30% in 2021 so far.

However, as the global economy is expected to enter a period of normalisation, the IMF expects Australia’s real GDP growth to slow to 2.3% by 2023.

The S&P/ASX 200 Index (ASX: XJO) is falling by 25 points today but is up more than 5% in 2021.

More reading

• Westpac (ASX:WBC) reports ‘extraordinary’ Australian consumer confidence
• NAB (ASX:NAB) share price falling on credit restriction calls
• ASX miners in focus as the copper price looks poised to crack above 10-year highs
• The Westpac (ASX:WBC) share price is the best performing of the big four banks in 2021
• Airbnb predicts huge rebound, ASX travel shares in the hot seat

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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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.

Cathie Wood, the CEO of ARK Invest, is known for finding hypergrowth names with upside potential. The three largest holdings in ARK’s six actively managed funds are Tesla, Square, and Teladoc. None of the three is cheap by traditional valuation metrics like price to sales (P/S) or price to earnings (P/E). But ARK believes that these companies, and others like them, will lead to a doubling of U.S. GDP to $40 trillion by 2035. 

By contrast, The Dow Jones Industrial Average (DJIA) will celebrate its 125^th anniversary on May 26. But while it’s meant to reflect the entire U.S. economy, it doesn’t exactly conjure an image of growth. In fact, the Nasdaq has given investors twice the return of the DJIA over the last five years.

Surprisingly, the four DJIA components that ARK owns — Apple (NASDAQ: AAPL), Caterpillar (NYSE: CAT), Boeing (NYSE: BA), and Honeywell (NYSE: HON) — are all relatively stable companies with histories of earnings growth, rather than up-and-coming rising stars. Here’s why Cathie Wood likes these four Dow stocks, along with some surprising reasons she doesn’t like a few others. 

1. Apple: $79.6 million

The ARK Fintech Innovation ETF (NYSEMKT: ARKF) owns 606,427 shares of Apple, which is worth nearly $80 million as of Apple’s closing price on April 12. While this may sound like a lot, Apple is the fund’s 24^th-largest holding and comprises less than 2% of its total value. ARK is a firm believer in mobile technology’s increasing role in commerce, repeatedly noting the success of China’s mobile payment system, so Apple’s fintech developments like the Apple Card and Apple Pay make it a natural fit in ARK’s Fintech ETF.

Augmented Reality (AR) is one of ARK’s most closely followed trends. In its Big Ideas 2021 presentation, ARK called out Snapchat, Facebook, and Apple for increasing their investments in AR (all three companies are held in the Fintech Innovation ETF). ARK also supports Apple’s decision to transition Macs to ARM processors. ARK believes ARM could become the new processor standard by 2030, displacing Intel and leading to further domination by AMD and NVIDIA. 

AAPL Total Return Level data by YCharts

2. Caterpillar: $75.6 million

Earth moving equipment manufacturer Caterpillar is the 15^th-largest holding in the ARK Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ). After a strong market-beating year in 2020, shares of Caterpillar are currently right around their all-time high. In fact, Caterpillar is up over 25% so far in 2021, making it one of the best-performing stocks in the DJIA.

Caterpillar is an international company that generates over half its sales from outside the U.S. Global competition in the construction, mining, and energy industries is fierce, especially in China — which is Caterpillar’s hottest market. To stay ahead, Caterpillar is implementing machine learning and big data to help its customers better manage their fleets. Caterpillar has developed tools like Cat Connect and Cat Digital, which can be used for both existing and new equipment. 

3. Boeing: $22.5 million

Boeing is the 11^th-largest holding in the newly launched ARK Space Exploration & Innovation ETF (NYSEMKT: ARKX). As the world’s second-largest maker of commercial airplanes and a leading aerospace company, Boeing has a clear role to play in the burgeoning space industry. Boeing’s Defense, Space, and Security segment is a prime contractor for NASA’s Space Launch System, a heavy-lift rocket for human space exploration. Boeing also builds satellites and software systems for commercial, military, and scientific exploration. 

4. Honeywell: $7.4 million

Honeywell is a minor holding, ranking 28^th in ARK’s Space ETF. Honeywell manufactures and designs components for the commercial airline industry and the defense industry. However, its strides in the industrial internet of things (IIOT), which involves developing operational technology (OT) for industrial equipment, are right up ARK’s alley. Honeywell would fit nicely into the ARK Innovation ETF (NYSEMKT: ARKK), the largest of its actively managed ETFs. But because the fund is centered almost entirely around tech stocks, that’s unlikely to happen anytime soon.

Surprising Dow stocks ARK doesn’t own

ARK’s tech-centered focus may lead investors to assume it owns Salesforce and Microsoft, which are both Dow stocks. But it doesn’t. The ARK Next Generation Internet ETF (NYSEMKT: ARKW) holds 53 securities, but not Verizon. And while five out of the DJIA’s 30 components are financial companies, Ark’s fintech fund holds none of them. Finally, the ARK Genomic Revolution Multi Sector ETF (NYSEMKT: ARKG) is focused heavily on healthcare, yet holds none of the DJIA’s five healthcare stocks. 

Takeaways

Industrial stocks aren’t often thought of as the most exciting sector on Wall Street. However, leading dividend-paying industrial stocks with growth potential have been handsomely rewarding investors for decades. Cathie Wood and her team think a handful of these names have bright futures in emerging industries. Honeywell and Caterpillar, in particular, stand out as two top-tier companies poised to raise their dividends and beat the market over the long term.

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

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Daniel Foelber has no position in any of the stocks mentioned. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Facebook, Microsoft, NVIDIA, Salesforce.com, Square, Teladoc Health, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Intel and Verizon Communications and recommends the following options: long January 2023 $57 calls on Intel, short March 2023 $130 calls on Apple, short January 2023 $57 puts on Intel, and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple, Facebook, and NVIDIA. 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.

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New Zealand-based diversified energy provider, Genesis Energy Ltd (ASX: GNE) has failed to get its share price to rally after releasing its third-quarter performance report. At the time of writing, the Genesis Energy share price is down 0.31% to $3.19.

A mixed bag of results has been met with a mixed reception from investors. Let’s take a look over what the energy provider released today.

Customers dwindle

The Genesis Energy share price is on the slide today after the company advised its total customers declined, despite a 20% surge in total energy generation compared to last year. With a 2.4% fall, total customers took a step backwards from 486,338 to 474,702 by the end of the March quarter.

The issue stems from a high net customer churn rate of 15.2% on a 3-month rolling average. Genesis has been taking steps to try to reduce this by building customer engagement.

One such initiative has been the company’s ‘Power Shout hours’, which offers free energy from its rewards program. Genesis gave its customers over 1.2 million Power Shout hours over the quarter. Management believes this was responsible for the 19% increase in the company’s interaction net promoter score.

In addition, the re-platforming of Genesis Energy’s sales, service, and billing technologies is on course as planned. A decision is expected to be made by the end of FY21 from the company’s shortlist of potential suppliers.

Gas and oil out of favour

Although Genesis’ total energy generation was comprised of 31% gas, volumes fell drastically during the quarter. The retail segment of the business recorded a 20% fall in total LPG sales volumes. Meanwhile, gas generation for the wholesale segment declined 25% to 605 GWh.

At the same time, the Kupe oil and gas field continues to undergo strategic review. The company noted strong interest from potential buyers for Genesis’ stake. Coincidentally, The Australian Financial Review recently reported on natural gas beginning to get a bad rap with emission-conscious investors.

On a positive note, Genesis Energy’s renewable generation increased by 15% to 487 GWh – demonstrating the energy provider’s green shift.

Genesis share price snapshot

The Genesis share price has been trending upwards, returning 16% in the past 12 months. However, this is still an underperformance compared to the S&P/ASX 200 Index (ASX: XJO), which has increased by around 31% over the last year. 

Despite the slowdown in customer growth, Genesis shares are still trading at a price-to-earnings (P/E) ratio of 38.9. 

More reading

• Brokers weigh in on Galaxy (ASX:GXY) and Orocobre (ASX:ORE) merger
• Why the Bank of Queensland (ASX:BOQ) share price is charging higher today
• Afterpay (ASX:APT) share price: Is a US listing a game changer?
• Why the Sydney Airport (ASX:SYD) share price is trading lower today
• Hub24 (ASX:HUB) share price slides despite record growth

Motley Fool contributor Mitchell Lawler 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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ASX lithium heavyweights Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE) are the latest ASX mining shares to join hands and emerge as a global mining heavyweight. 

Under the Scheme of Arrangement, Orocobre will acquire 100% of the shares in Galaxy. The combined group will create the fifth-largest global lithium chemicals company. 

This follows the Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings (ASX: SAR) merger which saw the combined group climb the rankings to emerge as a global top 10 gold producer.

Big brokers have digested yesterday’s news and provide their opinions below. 

Brokers weigh in on the Galaxy and Orocobre merger 

Brokers are largely positive about the merger. However, they are reserved with their new share price targets. And understandably so, with the Galaxy and Orocobre share prices surging a respective 380% and 205% in the past 12-months. 

Citi has observed the many benefits of the board-endorsed $4 billion merger. This includes scale benefits on operations, the marketing potential on improved product mix, and lower corporate overheads. The broker is still waiting for the company to quantify these synergies. For the time being, it assumes that the ‘MergeCo’ could be 5-12% earnings per share accretive in FY22 and FY23.  

Citi is ‘buy’ rated on Ocorobre shares with a $6.75 target price. 

Similarly, Macquarie believes the merged entity will provide synergies and accelerate the development of Argentinian operations. The combined group would also form a stronger base to fund its growth projects. 

Macquarie rates Orocobre shares as an ‘outperform’ with a $7.10 target price. 

Morgan Stanley was the only broker to have a negative target price despite its positive commentary. The broker believes the merger would “benefit both parties via scale, balance sheet capacity, and the ability to better sequence growth projects”. 

Despite having nothing negative to say about the merger, it was ‘equal-weighted’ on Orocobre shares with a target price of just $4.35. 

Orocobre shares have run more than 30% in April and currently fetching $6.53. While Galaxy shares have run more than 40% to $3.84. 

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Motley Fool contributor Kerry Sun 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 Bank of Queensland Limited (ASX: BOQ) share price has been a positive performer on Tuesday.

In afternoon trade, the regional bank’s shares are up over 2% to $9.11.

This compares to a 0.35% decline by the S&P/ASX 200 Index (ASX: XJO).

Why is the Bank of Queensland share price pushing higher today?

There have been a couple of catalysts for the solid performance by the Bank of Queensland share price on Tuesday.

One of those was the release of an announcement clarifying an aspect of its recent half year results release.

According to the release, the bank has amended its earnings per share and weighted average number of shares figures in accordance with AASB 133.

This has resulted in earnings per share increasing slightly from what it reported with its results earlier this month. Though, it is important to note that there is no change in respect to growth rates between the first half and the prior corresponding period.

Diluted earnings per share for the first half is now 32.8 cents per share. This is up 4% on the prior corresponding period and 120% on the second half of FY 2020. This compares to the 31.8 cents per share reported previously.

What else is supporting its shares?

Also giving the Bank of Queensland share price a boost today was a broker note out of Morgan Stanley.

According to the note, the broker has upgraded the bank’s shares to an overweight rating with an improved price target of $10.00.

This price target implies potential upside of approximately 10% for its shares over the next 12 months excluding dividends.

Morgan Stanley was pleased with the bank’s performance in the first half and expects more of the same in the second half. And while it doesn’t expect the acquisition of ME Bank to necessarily boost its growth prospects, it sees positives from scale benefits and geographic diversification.

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Motley Fool contributor James Mickleboro 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 Why the Bank of Queensland (ASX:BOQ) share price is charging higher today appeared first on The Motley Fool Australia.

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