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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is edging lower. The benchmark index is currently down almost 0.1% to 6,817.9 points.

Here’s what is happening on the market today:

Treasury Wine hit by Chinese tariffs

The Treasury Wine Estates Ltd (ASX: TWE) share price is trading lower today after China’s Ministry of Commerce (MOFCOM) confirmed that it would be placing tariffs on Australian wine for five years. MOFCOM made the move following the final determination in its anti-dumping and countervailing investigations into certain Australian wine exports into China. A combined anti-dumping and countervailing duty rate of 175.6% will be applied to Treasury Wine’s Australian country of origin wine in containers of two litres or less imported into China.

Computershare raises $500 million

The Computershare Ltd (ASX: CPU) share price has returned from its trading halt and is pushing higher after completing the institutional component of its entitlement offer. The share registry company raised $500 million from institutional investors and will now seek to raise a further ~$335 million from retail shareholders. These proceeds are being used to partially fund its acquisition of Wells Fargo Corporate Trust Services (CTS) for US$750 million (~A$982 million). 

REA Group acquisition

The REA Group Limited (ASX: REA) share price is tumbling lower after announcing plans to acquire Mortgage Choice Limited (ASX: MOC) for $244 million or $1.94 per share. REA Group’s CEO, Owen Wilson, commented: The acquisition of Mortgage Choice represents an exciting opportunity for REA to create a leading broking business. It builds on our success to date, accelerating our financial services strategy while leveraging our existing strengths and capabilities.” The Mortgage Choice board has voted unanimously in favour of the takeover.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Iluka Resources Limited (ASX: ILU) share price with a 6.5% gain on no news. Going the other way, the worst performer has been the Netwealth Group Ltd (ASX: NWL) share price with a 4.5% decline. Investors have been selling the wealth management platform provider’s shares since last week. This follows news that its deposit arrangement has been terminated.

More reading

• Mortgage Choice (ASX:MOC) share price rockets 61% on REA takeover
• Treasury Wine (ASX: TWE) share price sinks lower on China update
• Why the Computershare (ASX:CPU) share price is on watch today
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended REA 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 Cimic Group Ltd (ASX: CIM) share price is edging higher in late morning trade. This comes after the company announced its specialist building company had won a contract award.

At the time of writing, the global engineering company’s shares are trading at $18.14, up 0.89%.

Why is the Cimic share price lifting?

According to its release, Cimic’s Broad Construction has been selected to deliver Brisbane’s Ferny Grove Central development. Honeycombes Property Group and joint-venture partner MaxCap Group awarded the contract.

Broad Construction is a wholly-owned subsidiary of CPB Contractors, which is part of the Cimic Group.

Broad Construction will redevelop the existing Ferny Grove train station commuter car park into a residential, commercial and retail hub under the agreement. The company will also provide additional parking spaces for commuter vehicles, partly funded by the Queensland and Australian government.

The project complements Broad Construction’s portfolio of works completed in Queensland. The company was responsible for the development of the Inner-City South State Secondary College and the Kingaroy Hospital.

Cimic expects the new Ferny Grove Central contract to generate roughly $100 million in revenue for CPB Contractors.

Construction is scheduled to start in June 2021 and be completed by August 2023.

Management commentary

Cimic group executive chair and CEO Juan Santamaria commented:

Backed by CPB Contractors, Broad Construction is our specialist building company and is delivering a range of high-quality projects, across Queensland and Western Australia. We are very pleased to be working with the Honeycombes Property Group and the MaxCap Group on this landmark urban redevelopment.

CPB Contractors managing director Jason Spears added:

The experience of our team means that we have the capability to provide safe and certain delivery to our clients. Broad’s inclusive procurement strategies will also provide opportunities for local workers and businesses.

The Cimic share price has lost roughly 20% over the past 12 months and is down around 27% year-to-date.

More reading

• Why the CIMIC (ASX:CIM) share price is lifting this morning
• The Cimic (ASX:CIM) share price slides despite new contracts
• ASX 200 drops, Webjet reveals B2B plan, Cimic wins again
• Decmil (ASX:DCG) share price lifts on $25 million contract win
• What’s going on with the Cimic (ASX:CIM) share price today?

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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The Mortgage Choice Limited (ASX: MOC) share price is going gangbusters today after the company announced it is the subject of a proposed acquisition by REA Group Limited (ASX: REA). At the time of writing, the mortgage broker’s shares have surged a whopping 61.7% to $1.90.

Meanwhile, the REA Group share price is currently trading 2.23% lower at $136.94. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.04%.

Let’s take a closer look at the proposed Mortgage Choice, REA Group deal.

What did Mortgage Choice announce?

The Mortgage Choice share price is through the roof today following news of the proposed takeover. In separate statements to the ASX, both Mortgage Choice and REA Group declared they have entered into a scheme implementation agreement (SIA). 

Under the proposal, REA Group will purchase 100% of Mortgage Choice shares for $1.95 each. That price represents an outstanding:

• 66% premium on Friday’s close.
• 66.8% premium on the 1-month value weighted average price (VWAP).
• 55.6% premium on the VWAP since the release of its H1 FY21 results.
• 42.5% premium on the 3-month VWAP.
• 52.0% premium on the 6-month VWAP.

The Mortgage Choice board voted unanimously to approve the deal, subject to shareholder approval.

There are, however, still some administrative hurdles to clear before the deal can be finalised. Besides approval by the broker’s shareholders, the deal is also subject to:

• Court approval.
• Foreign Investment Review Board approval.
• No material adverse changes in either company. 
• An “independent expert concluding the Scheme is in the best interests of Mortgage Choice shareholders.”

In addition, if the deal were to fall through, either party would be liable to pay the other a $2.4 million break fee. 

Mortgage Choice shareholders are expected to vote on the deal around mid-June 2021.

Management commentary

Speaking about the upcoming deal, Mortgage Choice chair Vicki Allen said

Joining forces with REA, and in particular their Smartline broking business, combines our strong brand with REA’s impressive digital capability and property insights. It further establishes Mortgage Choice as one of the leading broking groups in Australia and will enable Mortgage Choice to operate at greater scale with an improved service offering to brokers and their customers.

The Scheme provides certainty for shareholders to realise a significant value premium of 66.0% to our closing share price on 26 March 2021. The Mortgage Choice Directors consider this to be a very attractive offer for Mortgage Choice shareholders and unanimously recommend that shareholders vote in favour of the Scheme, subject to there being no superior proposal emerging and to the independent expert concluding that the Scheme is in the best interests of Mortgage Choice shareholders.

REA Group listed the following reasons for proposing the acquisition:

• Leveraging REA’s digital expertise, high intent property seeker audience and unique data insights across a larger network.
• Providing a compelling opportunity to establish a leading mortgage broking business with increased scale.
• Complementing the existing Smartline broker footprint resulting in greater national broker coverage.

In addition, REA Group CEO, Owen Wilson, commented:

The acquisition of Mortgage Choice represents an exciting opportunity for REA to create a leading broking business. It builds on our success to date, accelerating our financial services strategy while leveraging our existing strengths and capabilities.

Mortgage Choice share price snapshot

After today’s stunning increase, the Mortgage Choice share price has now surged by more than 200% over the past year. Mortgage Choice shares are also up by around 28% year to date thanks to today’s gains.

Based on the current share price, Mortgage Choice has a market capitalisation of around $147 million. 

Meanwhile, the REA share price has also rallied by nearly 70% over the past 12 months.

More reading

• 3 high quality ASX shares to buy next month
• 2 ASX 200 blue chip shares to buy
• REA Group (ASX:REA) share price jumps on broker upgrade news
• Where to invest your BHP (ASX:BHP) dividends
• 3 unstoppable ASX shares that keep growing

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It has been a difficult start to the week for the shares of Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Limited (ASX: QAN), and Webjet Limited (ASX: WEB).

At the time of writing, all three travel companies are in the red and underperforming the S&P/ASX 200 Index (ASX: XJO).

What’s happening?

Here’s the current state of play in the sector today:

• The Flight Centre share price is down 2% to $18.14.
• The Qantas share price has fallen 0.7% to $5.08.
• The Webjet share price is 2% lower at $5.61.

Why are travel shares under pressure?

There appear to be a couple of catalysts for today’s weakness in the travel sector.

The first is news that Greater Brisbane will go into a snap three-day lockdown from 5pm AEST today. This is in response to 10 new cases of COVID-19, four of which are from community transmission.

According to the ABC, Queensland Premier Annastacia Palaszczuk revealed that two of the community transmission cases have an unknown origin.

As things stand, other states have yet to respond to the Queensland Government’s update, but there are concerns that travel to Brisbane could be off the cards during the key Easter holiday period.

What else is weighing on travel stocks?

In addition to this, rising cases of COVID-19 across the world appear to have spooked investors.

Although vaccines are being rolled out across Europe and North America, it hasn’t been enough to slow the spread of the virus.

This has led to lockdowns being put in place in some countries to fight a third wave.

And with the Northern Hemisphere’s holiday period on the horizon, there are fears that the travel market rebound could be pushed back into 2022.

The good news for the likes of Flight Centre, Qantas, and Webjet, though, is that they have sufficient liquidity to ride out the storm well into next year.

More reading

• These are the 10 most shorted shares on the ASX
• ASX 200 travel shares poised to see pent up travel demand unleashed
• Qantas (ASX:QAN) share price lifts after ACCC ruling
• The Regional Express (ASX:REX) share price has fallen after fresh Qantas challenge
• Did Powell just blink first in the Fed’s staring contest with inflation?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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 Peppermint Innovation Ltd (ASX: PIL) share price is surging 13% higher today after signing an Application Programming Interface (API) agreement with major Filipino bank Bank of the Philippine Islands (BPI).

The API agreement means BPI will start offering Peppermint’s bizmoto platform, an ecommerce and BPay-esque service, to its four million account holders.

Landmark agreement in key market

Peppermint’s service allows its customers to pay bills, conduct e-commerce, delivery and logistics, and mobile financial tasks through a mobile wallet. Customers can then top up and transact remotely. 

Peppermint will undertake a direct marketing campaign as part of the deal, promoting the bizmoto services. The agreement has a ‘go live’ date for the second half of this year.

Peppermint’s Managing Director and CEO, Chris Kain, said that forming an agreement with BPI was a landmark in the company’s expansion into the South-East Asian market.

“This is a significant agreement for Peppermint Innovation, and it’s a privilege to be able to do business with the Bank of the Philippine Islands, who were the first bank in the Philippines and South East Asia,” he said.

“BPI is such a respected institution in the Philippines and Peppermint’s proven capability and track record of working with other banking entities has positioned us well to do business with BPI. As soon as we can, we will execute targeted awareness and marketing campaigns in partnership with BPI to their over four million customer account holders.

“To put that in context, we currently have over 50,000 bizmoto agents so we have the potential to market and explain how our bizmoto platform works to almost 80 times the number of current registered agents.

“This is yet another step forward on our path to building out our range of bizmoto ecosystem of services across the Philippines and to tackling the problem of providing inclusive financial services to the people of the Philippines.”

Peppermint share price on sharp yearly incline

The Peppermint share price has risen more than 230% this year-to-date, with investors also realising the brand’s potential to capture the lucrative emerging ‘buy now, pay later’ market across southern Asia. 

While Peppermint’s bizmoto platform is currently based around mobile remittance — allowing customers to set up their own mobile businesses — the company has the potential to transition towards an end-to-end banking service.

This is the second major announcement for Peppermint this month, after the company revealed its micro-insurance product BizmoProtect on 3 March. 

At the time of writing, the Peppermint share price is swapping hands for 4.1 cents.

More reading

• Why the Peppermint (ASX:PIL) share price is bouncing today

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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The Duratec Limited (ASX: DUR) share price is up this morning after the company announced 2 new defence contracts. The contracts are worth a combined $38 million.

The good news is timely for the engineering, construction, and remediation company. The Duratec share price has fallen more than 18% year to date and at the time of writing is trading at 48 cents, down 1.03%. 

Let’s look closer at the company’s announcement.

Defence works 

This morning, Duratec advised that it and its sister company DDRIC had each won a defence works contract, worth a combined $38 million.

The larger contract, won by Duratec, will bring in $25 million. While the contract won by Indigenous-owned DDRIC is worth $13 million.

Both works will take place in the third quarter of the 2021 financial year. The company said the works involved building refurbishment, electrical infrastructure upgrades, wharf remediation and specialist training facilities construction. They will take place across multiple defence sites.

The company noted that, while works will start soon, project lead times mean that most of the income from the contracts won’t reach Duratec and DDRIC until the 2022 financial year.  

According to the company, it has a presence on nearly half of all of Australia’s defence bases. It also has more than $200 million worth of defence tenders awaiting decisions.

Commentary from management

Duratec managing director Phil Harcourt commented on the importance of defence contracts for the companies:

The diversity and complexity of work type awards and locations demonstrates the experience, capability and national presence of Duratec which retains the agility of a local business. We understand the importance of maintaining Defence capability, security of the project work sites and satisfying the needs of all stakeholders.

Defence continues to be a key strategic focus for Duratec… The pipeline of opportunities in this sector, together with the resources sector (in particular), continues to grow for both Duratec and DDRIC.

Duratec share price snapshot

Despite the positive news, the Duratec share price opened at 49 cents and immediately slipped 1.03% to 48 cents.

It is down by 21.31% over the last 12 months.

The company has a market capitalisation of around $115 million, with approximately 237 million shares outstanding.

More reading

• Why the Duratec (ASX:DUR) share price is up 10% this afternoon

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.

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The South32 Ltd (ASX: S32) share price is outpacing gains on the broader market after a broker upgraded its shares.

The diversified miner jumped 3.3% to $2.84 in morning trade when the S&P/ASX 200 Index (Index:^AXJO) gained 0.4%.

South32 share price leading the pack

While ASX mining shares are leading the charge higher, few of the majors can keep up with the South32 share price.

The BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price increased by less than 2% each.

Asset sale and broker upgrade

South32 announced today that the transfer of its shareholding in South32 SA Coal Holdings (South Africa Energy Coal) to Seriti Resources Holdings Proprietary Limited is expected to be completed by the end of this month.

The news will please shareholders concerned about their exposure to climate change. But that is probably not the main reason for the South32 share price outperformance.

An upgrade by Macquarie Group Ltd (ASX: MQG) is a more likely driver for the shares. The broker lifted its recommendation on South32 to “outperform” from “neutral”.

Why the South32 share price was upgraded to “buy”

Macquarie’s decision came after it revised up its price forecasts for a range of commodities that South32 produces. This included manganese, silver and aluminium.

As a result, the South32 share price is trading on a free cash flow yield that’s close to 10%.

“The earnings upgrades for S32 are driven by a combination of the more bullish outlook for silver and aluminium, and near-term increases in our manganese and zinc-price expectations,” said Macquarie.

“Our FY21 and FY22 earnings estimates rise 51% and 49%, respectively. S32’s medium-term earnings also see solid upgrades of 12% for FY23, 11% for FY24 and 9% for FY25.”

Other ASX mining shares on the upgrade path

The South32 share price jumped by 52% over the past year. That’s roughly on par with the BHP share price, while the Fortescue share price doubled and Rio Tinto’s up 26%.

Macquarie’s 12-month price target on South32 is $3.10 a share.

But South32 isn’t the only miner to be upgraded by Macquarie on the back of the broker’s commodities price upgrades.

The Jupiter Mines Ltd (ASX: JMS) share price was boosted to “outperform”, while the Alumina Limited (ASX: AWC) share price was lifted to “neutral”.

More reading

• Why AVZ, Betmakers, Santos, & South32 shares are storming higher
• Why the News Corp (ASX:NWS) share price is one to watch today
• More Aussies now think shares are better than real estate
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Macquarie Group Limited, Rio Tinto Ltd., and South32 Ltd. 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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In morning trade, the S&P/ASX 200 Index (ASX: XJO) was on course to start the week with a strong gain before quickly giving the majority of it back. At the time of writing, the benchmark index is up 0.1% to 6,833.6 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price is up over 4% to 21 cents after announcing a new offtake agreement. According to the release, AVZ has signed a binding three-year offtake agreement for the sale of 600 metric tonnes per annum of tin concentrate to Kalon Resources from its Manono Lithium and Tin Project. This represents ~43% of its expected tin concentrate production.

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price has jumped 8% to $1.09. This follows the release of an investor presentation this morning. That presentation gave investors a breakdown of the betting technology company’s growth plans. Particularly once the game-changing acquisition of Sportech’s Tote and Digital businesses completes. Management advised that the acquisition is on track with no material issues having emerged during the completion period and through integration planning. The acquisition remains on target to complete during the fourth quarter of FY 2021.

Santos Ltd (ASX: STO)

The Santos share price is up 2% to $7.30. Investors have been buying the energy producer’s shares this morning after a strong rise in oil prices on Friday night. Traders were bidding oil prices higher amid concerns that the Suez Canal blockage could last for weeks and have a big impact on supply.

South32 Ltd (ASX: S32)

The South32 share price is up 3% to $2.83. The catalyst for this gain appears to be a broker note out of Macquarie this morning. According to the note, the broker has upgraded the mining company’s shares to an outperform rating with a $3.10 price target. It made the move in response to increasing demand for manganese and aluminium. It notes that at current spot prices, South32 is positioned to deliver bumper free cash flows.

More reading

• Why the South32 (ASX:S32) share price is outperforming today
• Here’s why the AVZ Minerals (ASX:AVZ) share price is charging 7% higher
• Why the BetMakers (ASX:BET) share price is worth watching
• Santos (ASX:STO) share price rises on production update
• 5 things to watch on the ASX 200 on Friday

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 Betmakers Technology Group 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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AMP Ltd (ASX: AMP) shares are edging lower in morning trade following two market updates from the financial services giant. At the time of writing, the AMP share price has slumped 0.37% to $1.34. 

Let’s take a look at what the S&P/ASX 200 Index (ASX: XJO) company announced. 

Joint venture update

On Friday 26 March, AMP drew ASX 200 investor attention when it reported a potential joint venture (JV) with Ares Management Corp (NYSE: ARES).

Under the proposed deal, Ares would have had a 60% stake and management control of the JV. AMP, in turn, would have received $1.55 billion cash (before associated costs) for its private markets businesses, which cover its unlisted property and infrastructure funds.

The AMP share price is on the slide today after the company reported this morning that the 30-day exclusivity period with Ares for the proposed transaction has concluded.

The company said Ares has expressed an interest in acquiring 100% of the private markets businesses. It added that while it is still working with Ares towards a potential transaction, there is “no certainty that a transaction will proceed”… including the particular terms and size of a potential deal. Shareholder approval of any deal would also still be required.

What else did AMP announce?

In a separate ASX release this morning, AMP reported it is ending its management agreement with Precinct Properties New Zealand Ltd (NZE: PCT), enabling Precinct Properties to internalise the management of its business.

The New Zealand listed real estate investment trust (REIT) will pay NZ$215 million (AU$197 million) for 100% of the management interests. AMP Capital has a 50% interest in management company AMP Haumi Management Limited and has managed Precinct since the REIT first listed in 1997.

AMP reported it expects to receive roughly AU$80 million in profit from the deal “subject to foreign currency and other adjustments” for its 50% share. The company said Precinct will no longer pay management fees after the deal is complete, stating that impact was “not material to AMP Capital’s ongoing earnings”.

AMP share price snapshot

Over the past 12 months, the AMP share price is flat. That compares to a 32% gain on the ASX 200.

Year to date AMP shares are down by around 14%. AMP pays an annual dividend yield of 3.1%, 90% franked.

More reading

• More Aussies now think shares are better than real estate
• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO
• AMP (ASX:AMP) share price takes wild ride on CEO’s future
• 5 things to watch on the ASX 200 on Friday
• Dexus (ASX:DXS) share price rises on proposed $15 billion fund merger

Motley Fool contributor Bernd Struben 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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Last week TPG Telecom Ltd (ASX: TPG) dropped a bombshell when it announced the surprise resignation of its Founder and Chairman, David Teoh, with immediate effect.

This news led to the TPG share price crashing lower and the Telstra Corporation Ltd (ASX: TLS) share price pushing higher.

Is this good news for the Telstra share price?

Analysts at Goldman Sachs have been looking into the implication of Mr Teoh’s resignation and see positives for Telstra and the telco industry.

In respect to industry pricing, Goldman believes this news will be a big positive.

It commented: “We see this as a clear positive for industry rationality, noting that the TPM Board had a track record of targeting market share growth through aggressive pricing. Consequently, following the merger between TPG and VHA, there has been an elevated risk that this price-led strategy would become evident within the new TPG mobile business, and disrupt the current market repair.”

“Hence we view this announcement as a clear positive for rationality in the Australian mobile market, reducing the tail-risk of an aggressive price-led strategy from TPG.”

This is particularly the case given that the appointment of Canning Fok as Mr Teoh’s replacement means the old Vodafone Australia team has control of the business now.

Goldman explained: “In our view, Fok’s appointment as Chair of the TPG board cements control of the business with Vodafone & Hutchinson, who now represent: (1) 50.1% of the TPG equity; (2) both CEO & Chair of the business; and (3) 5 of the 10 board members (5 VHA, 3 TPM, 2 Independent).”

Should you buy Telstra shares?

In light of the above, Goldman Sachs has reaffirmed its buy rating and $4.00 price target on Telstra’s shares.

Based on the current Telstra share price of $3.39, this implies potential upside of 18% over the next 12 months. And with Goldman forecasting a 16 cents per share fully franked dividend for the foreseeable future, the total potential return stretches to almost 23%.

The broker concluded: “Overall this announcement supports our positive view on the Australian Telco Sector into 2021, given the expected return to growth in mobile revenues and completion of the NBN margin headwinds in fixed. Our preference remains for Telstra (Buy, A$4.00 TP) as we outlined in our 2021 Outlook, given our expectations for a re-rating of the business as it becomes a ‘simple’ telco again, along with the potential upside in its infrastructure assets.”

Goldman Sachs has retained its neutral rating and $7.10 price target on TPG’s shares.

More reading

• Is the Telstra (ASX:TLS) share price a buy today?
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• Top brokers name 3 ASX shares to buy next week
• These were the worst performers on the ASX 200 last week
• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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