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Bannerman Energy Ltd (ASX: BMN) shares are starting the week in a positive fashion.

In morning trade, the ASX uranium stock is up 8% to $3.24.

Why is this ASX uranium stock racing higher?

Investors have been scrambling to buy the company’s shares this morning after it released the results of a scoping study.

Bannerman’s study was evaluating future higher throughput and operating life cases for its flagship Etango Uranium Project in Namibia.

Management notes that two future phase options have been evaluated. These are a post ramp-up expansion in throughput capacity to 16 Mtpa (known as Etango-XP) or an extension of operating life to 27 years (known as Etango-XT).

Outside this, the company remains committed to advancing Front End Engineering and Design (FEED), offtake marketing, and strategic financing workstreams on its base case 8 Mtpa Etango development (known as Etango-8).

It highlights that the scoping study evaluation of the Etango-XP and Etango-XT cases has been undertaken to demonstrate the potential technical and economic viability of subsequent expansion and/or life extension options for Etango following the successful construction and ramp-up of Etango-8.

Scoping study results

For Etango-XP, the results are as follows:

• Life of Mine (LOM) U3O8 output of 95.2 Mlbs over 16 years
• Annual average U3O8 output (post plant expansion) of 6.7 Mlbs
• Expansion phase capex of US$325 million
• LOM average all-in-sustaining cash cost (AISC) of US$42.5/lb U3O8

For Etango-XT, its results were:

• LOM U3O8 output of 95.2 Mlbs over 27 years
• Annual average U3O8 output of 3.5 Mlbs
• No expansion phase capex
• LOM average AISC of US$45.3/lb U3O8

And for the purpose of comparing with its existing Etango-8 plans, here’s what the company is targeting currently:

• LOM 52.6 Mlbs over 15 years
• Annual average U3O8 output of 3.5 Mlbs
• Zero expansion capex
• LOM average AISC of US$38.1/lb U3O8

Essentially, both Etango-XP and Etango-XT will produce the same amount of uranium, but one will do it in almost half the time and at a slightly lower cost if the company invests US$325 million.

‘Supercharged’ economics

Bannerman’s executive chairman, Brandon Munro, was very positive on the outlook for the Etango project, particularly given how strong uranium prices have become in recent times.

U3O8 spot prices recently increased to a 16-year high of over US$100 per lb, which is significantly higher than the project’s base case assumptions. Munro commented:

I am delighted that we have more formally demonstrated the longer-term optionality delivered by our large-scale Etango uranium resource. While the XP and XT cases are readily viable at our base case Etango-8 DFS price assumption of US$65/lb, their economics are clearly supercharged in higher price scenarios.

As such, what the Scoping Study emphatically evidences is the significant underlying value residing in Etango’s huge in-ground leverage to, and scalability with, higher uranium price outlooks. The ability to enact either the XP or XT plans, post-delivery of the initial Etango-8 development, affords Bannerman substantial real option value across a range of long-term uranium price outcomes.

This ASX uranium stock is now up 150% over the last 12 months.

The post This ASX uranium stock is racing 8% higher on big news appeared first on The Motley Fool Australia.

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More reading

• What Dutton’s nuclear push could mean for ASX uranium shares

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

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This is a historic month for Australians.

For the first time in living memory, the Reserve Bank of Australia will hand down a scheduled interest rate decision that’s not on the first Tuesday of the month.

The central bank is now running on a reformed calendar, which means the board will reveal its judgement at 2:30pm this Tuesday.

It’s fair to say share markets and mortgage holders alike are waiting keenly for rate relief after a tough couple of years.

So what do the experts think will happen?

Interest rates guessing game

According to a survey of economists conducted by comparison site Finder, all 41 experts are tipping that the Reserve Bank will leave interest rates on hold on Tuesday.

So with Tuesday’s decision seemingly a foregone conclusion, the next question is when will the rates come down?

That is where the experts start disagreeing.

While rate rises might be done, QIC chief economist Matthew Peter reckons the RBA will still be cautious about inflation in the coming months.

“Elevated migration, coming tax cuts and ongoing wage increases will stop the RBA from easing back on monetary policy until later this year.”

Some have gone even further, with a quarter of the economists tipping rate cuts won’t come until next year or beyond.

July tax cuts could replace rate cuts

Corinna Economic Advisory economist Saul Eslake pointed out that the coming stage 3 tax cuts could act as relief for consumers, so that the Reserve Bank will not have to touch rates.

“Australian households will, on 1st July, be getting income tax cuts which, in terms of their impact on aggregate household cash flows, are equivalent to two 25 basis point rate cuts, which households in the Euro area, UK, Canada, US and NZ will not be getting.”

Bendigo and Adelaide Bank Ltd (ASX: BEN) chief economist agreed.

“The stage 3 tax cuts are a welcome first step in the need for broad based tax reform.

“They will provide some modest fiscal stimulus that makes a rate cut this year less likely, but still should allow rate cuts in 2025.”

This is why, in many ways, the RBA governor’s press conference on Tuesday afternoon will be more important for stocks than the actual rate decision. 

The market is desperate to hear what the central bank’s outlook and intentions are, so the words of Michele Bullock could really rock ASX shares either way.

The post ASX shares could get rocked Tuesday. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Mineral Resources share price marching higher on new lithium project acquisition
• ‘Housing AND Super’, not ‘Housing OR Super’
• Aussie Broadband share price tumbles after telco told to sell $47 million stake in a competitor
• Why Westpac shares could suffer from a ‘significant reset’
• Guess which ASX 200 tech stock has just been upgraded

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mineral Resources Ltd (ASX: MIN) share price is in the green today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock and diversified resources producer closed Friday trading for $65.91. In early trade on Monday, shares are swapping hands for $66.42 apiece, up 0.8%.

For some context, the ASX 200 is down 0.3% at this same time.

This comes following the announcement of a proposed lithium acquisition.

Here’s what we know.

ASX 200 miner to acquire Lake Johnston

The Mineral Resources share price is moving higher after the company reported it has entered into a binding heads of agreement to acquire the Lake Johnston nickel concentrator plant and tenure from Poseidon Nickel Ltd (ASX: POS).

The Poseidon Nickel share price is tumbling on the news, now 12%.

Mineral Resources plans to develop Lake Johnston as a lithium processing hub in the southern Goldfields region of Western Australia.

The company noted that the nickel concentrator plant has a flotation circuit with a front-end capacity of 1.5 million tonnes per annum. And it can be converted to treat lithium ores, including dense media separation fines.

The ASX 200 miner will pay Poseidon Nickel $1 million on execution of the agreement, $6.5 million on completion of the sale and purchase, and $7.5 million 12 months after completion.

Commenting on the proposed acquisition that looks to be helping boost the Mineral Resources share price today, managing director Chris Ellison said:

This is an exciting opportunity to develop MinRes’ third lithium processing hub in the Goldfields and the first to include flotation capacity to treat fines.

We intend to bring our expertise in spodumene production to Lake Johnston, which has the potential to service projects throughout the world’s most prospective region for lithium.

Poseidon Nickel CEO Craig Jones said that atop the $15 million in cash, the junior miner will retain “an exposure to any exploration success at Lake Johnston with royalties from any future minerals or metals production from the project tenements”.

Under the proposed agreement, Poseidon will receive 0.75% FOB royalty on lithium minerals and 1.5% net smelter return royalty on all other minerals and metals extracted from the Lake Johnston tenements.

Lake Johnston is licensed to operate until 2041.

Mineral Resources share price snapshot

Despite its diversified mining assets, the Mineral Resources share price has not escaped the pain of plunging lithium prices.

Over the past 12 months, shares in the ASX 200 miner are down 14%. Shares are up 26% since the recent 22 January lows.

The post Mineral Resources share price marching higher on new lithium project acquisition appeared first on The Motley Fool Australia.

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More reading

• 2 of the best ASX lithium stocks to buy this month
• Here are the top 10 ASX 200 shares today
• Morgans names the best ASX 200 stocks to buy in March
• Guess which ASX lithium stock just surged 94% on a deal with Mineral Resources
• 25 ASX 200 shares with ex-dividend dates next week

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

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“Here’s Phillips… he’s off such a long run, he’s pushing off the sightscreen…”

Yes, I’m a little fired up today.

—–

But before that — we’re doing something very cool. We’re going to host a LIVE, in-person recording of our podcast, Motley Fool Money. It’s going to be on the Gold Coast on the evening of Wednesday, March 27.

If you’re in the area and you’d like to see us record the podcast, we’d love to see you there. Just click on this link for more information and to RSVP!

——

Right, now back to my full head of steam…

See, the Federal Opposition last week confirmed what had been reported just recently  – that their new policy is to allow first home buyers to use $50,000 of their Super to buy that home.

Which has been described (by others, not me) as the worst financial policy this decade.

Now, I’m not sure about that… 21st Century Australian governments haven’t exactly covered themselves in glory…

But I’m not sure it’s wrong, either!

How bad is it? Let me count the ways.

This policy comes fresh off the COVID-era ‘help yourself to up to $20,000 of your Super’, which we now know led 750,000 Australians to completely empty their Super accounts and which will, according to at least one estimate, cost the Federal Budget $85 billion in extra pensions (and other entitlements).

Not only will those people retire a LOT poorer, but that policy will cruel the federal budget, making it harder to balance the books and requiring a LOT more tax to be collected.

And I’m not Harry Hindsight on this, by the way. I called it #RetirementWrecker at the time, and I stand by it.

The problem is that, even armed with those stats – of retirements curtailed and future Budgets overburdened – the Opposition is going at it again.

Imagine someone who took $20,000 out of their Super in 2020.

Imagine that they were 27.

Imagine that the sharemarket compounds at its historic average of 9% per annum for the rest of their working lives.

By 67, using the rough ‘Rule of 72’, that could have compounded to an astonishing $640,000. By

And if they didn’t touch that money, but used their other Super savings first? By 83, it might be worth over $2.5 million.

That $20,000 which ‘didn’t seem much’ and ‘is better in my hands than in Super’ looks pretty big now, huh?

So what about the $50,000 that the Opposition is now suggesting?

Using the same maths, that might otherwise compound to $1.6m at retirement and $6.4m by 83.

(Of course these aren’t predictions. No-one knows where the market is headed. But history is probably a pretty good guide. Here’s the thing, though: even if you halve those numbers, it’s still a very large chunk of change!)

So using $50,000 for a first home deposit doesn’t just cost those people $50k.

It’ll cost them much, much more than that. Which is why, as with the original Super raid, I’m breaking out the #RetirementWrecker hashtag yet again.

So, it’ll wreck their Super.

But at least it’ll make housing more affordable, right?

No. No, it won’t.

Hot on the heels of a myriad of First Home Buyers grants which, last time I checked, haven’t made housing more affordable, they reckon this one – ignore all of the other ones, this time will finally be different, honest! – will actually make housing more affordable.

If you believe that, I have a bridge to sell you.

Thing is, even my 11 year old could explain this one.

If you have a given number of properties, but you throw a larger amount of money at them, what will happen to prices?

They’d go up, wouldn’t they?

Mhmm.

So yes, buyers will have more money to throw at housing. But when they all have more money, and it’s thrown at the same housing… it’ll push prices up, doing… literally nothing for affordability.

But it’s worse than that.

See, once one first home buyer uses their $50,000 to make an offer, or bid at auction, the other first home buyers will have no choice but to match that offer, if they want to stand a chance of getting the property.

So not only is housing no more affordable, but you’ve essentially just locked every first home buyer into having to use their Super, whether they want to or not!

Yeah, but a home is more important than Super, right?

I mean, that’s the slogan being used, and it feels true.

The answer, again, is no.

What? You think money in a portfolio is better than a place to live? Are you mad?

No.

Because my ‘no’ is actually “No, I won’t be drawn into that false binary choice”.

First, as we’ve just shown from the maths, this doesn’t make housing any more affordable, so it’s not solving the problem it’s supposed to solve.

But also, we shouldn’t make young people make that choice. In a country as wealthy as Australia, it should be ‘and’, not ‘or’.

Past generations didn’t have to make that choice.

I didn’t have to make that choice.

Why on earth would we ask young people to make that choice?

They should be able to have a home AND Super. Not a home OR Super.

(Oh – and this is directed to both major parties – if your only, or major, contribution to housing affordability is to throw more money at it… then I wonder whether you actually are trying to solve housing affordability at all? You wouldn’t just be trying to give the impression of doing something, would you? Would you???)

We need to make housing affordable for our young people (and not-so-young people who are trying to buy a home). There are many good options available to our politicians to do just that.

But this policy – for all of the reasons outlined above, and more – isn’t one of them.

Our politicians need to stop viewing Super as a honeypot for their pet projects – or as a way to use our own money to pretend they’re doing something to help! Say it with me: #HandsOffSuper

And with that off my chest… have a great week!

Fool on!

The post ‘Housing AND Super’, not ‘Housing OR Super’ appeared first on The Motley Fool Australia.

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More reading

• Aussie Broadband share price tumbles after telco told to sell $47 million stake in a competitor
• Why Westpac shares could suffer from a ‘significant reset’
• Guess which ASX 200 tech stock has just been upgraded
• Can the Domino’s share price ever get back to $161?
• Buy Woodside shares and these ASX 200 dividend giants now

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

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Aussie Broadband Ltd (ASX: ABB) and Superloop Ltd (ASX: SLC) shares are catching the eye again on Monday.

Last week, they were in the news after Origin Energy Ltd (ASX: ORG) terminated its deal with Aussie Broadband and signed up with Superloop.

On the day, Superloop shares were up as much as 34% and Aussie Broadband shares sank 25%.

What’s going on with their shares today?

The Aussie Broadband share price is falling again on Monday and are down 4.5% to $3.39 in early trade.

This has been driven by news that Aussie Broadband has been instructed by its rival to sell a large portion of its Superloop shares immediately.

According to the release, Superloop has issued a notice under its constitution directing Aussie Broadband to dispose of 37,621,056 ordinary shares to reduce Aussie Broadband’s voting power in Superloop to less than 12%.

Based on Superloop’s last close price, this represents approximately $47 million worth of shares that need to be offloaded.

Superloop explained that Aussie Broadband’s current level of ownership is not allowed under its constitution. It said:

Aussie Broadband recently announced that it had acquired voting power of 19.9% in Superloop. The acquisition was made without the prior approval of the Info-communications Media Development Authority (IMDA) in Singapore, as required by Superloop’s constitution.

While Aussie Broadband claims the purchase was “inadvertent”, Superloop isn’t buying the excuse. It highlights that its rival recently dealt with the IMDA in Singapore in relation to its acquisition of unified communications-as-a-service provider Symbio. It said:

In subsequent correspondence with Aussie Broadband’s legal advisers, they have sought to characterise Aussie Broadband’s breach as “inadvertent”, despite Aussie Broadband’s recent acquisition of Symbio, which became effective in late February 2024 and required IMDA approval under the same statutory regime. They also sought to characterise Aussie Broadband’s conduct as merely “potential, technical non-compliance”.

Superloop has given Aussie Broadband 10 business days to sell down its holding. It adds:

Superloop takes its legal obligations seriously. Any risk of loss of a statutory licence in Singapore is a matter of concern to Superloop and its board. Accordingly, the Superloop board has determined that the appropriate response is to give a direction to Aussie Broadband under Rule 12A.5 of its constitution to reduce its shareholding to a level that is less than 12% within 10 business days.

This may complicate things for Aussie Broadband in the future if it wants to repurchase shares down the line. Superloop explains:

Superloop understands that another effect of Aussie Broadband’s failure to obtain IMDA approval in advance of the acquisition is that it now cannot acquire further voting power in Superloop without the approval of the IMDA under the Code, which Superloop understands can only be granted if the IMDA is satisfied that Aussie Broadband “was not aware” of the contravention.

Superloop shares are down 3% on the news.

The post Aussie Broadband share price tumbles after telco told to sell $47 million stake in a competitor appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy now
• Why Appen, Aussie Broadband, Core Lithium, and Westpac shares are dropping today
• Why Arafura, Bubs, Clinuvel, and Superloop shares are racing higher today
• Why are Superloop shares jumping 34% and Aussie Broadband shares sinking 25%?
• Long-term investing: 3 top ASX stocks you can buy for under $20 a share

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

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Westpac Banking Corp (ASX: WBC) shares may be facing incoming costs based on what may be needed to reset the ASX bank share.

Over the last six months, Westpac shares have gone up 20%, but have we seen the peak?

The Australian reported on comments by banking analyst Brian Johnson from MST Marquee which said Westpac’s “long-running operational underperformance” meant it needed a new external leader which is crucial to turn the bank around.

Significant costs incoming?

The analyst Johnson said:

We think Westpac requires a significant reset and that requires an external CEO successor.

He also said Westpac’s mammoth IT simplification project could “consume much of (its) perceived existing core equity tier one capital.”

The bank reportedly is close to finishing its multi-year risk and regulatory program of work, in which it has invested billions of dollars.

Westpac is looking to consolidate 180 back office systems into 60 over the next four or five years at a cost of around $2 billion, according to reporting by The Australian. Johnson said:

History suggests bank IT projects cost more, take longer and can compromise system stability during decommissioning.

Westpac is expected to tell investors about its technology turnaround initiatives on 27 March 2024.

There are reports that the ASX bank share is planning for a succession of the CEO. The Australian reported on comments that DNR Capital chief investment officer Jamie Nicol said it was important to have a CEO who would “own” the IT project. Nicol said:

Given that’s just about to start, you probably want the appointment sooner rather than later, unless Peter King was there to oversee the whole thing, but that would be four or five years.

That’s probably too long given that he was just about out the door before and he extended his stay.

Johnson suggests that a turnaround for Westpac may need to recognise “significant wrote-offs and restructuring costs.”

Costs could mean a reduction of profit, and profit is usually what investors like to value a business on.

Westpac share price valuation

After the run-up of the Westpac share price, its price/earnings (P/E) ratio has increased. The experts may be right to be concerned about the valuation, though it doesn’t have the highest earnings multiple in the sector (that title belongs to Commonwealth Bank of Australia (ASX: CBA)).

According to the estimate on Commsec, the ASX bank share is valued at 14 times FY24’s estimated earnings.

The post Why Westpac shares could suffer from a ‘significant reset’ appeared first on The Motley Fool Australia.

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More reading

• Here’s what Westpac says the RBA will do with interest rates next week
• Why Pilbara Minerals, Syrah Resources, Tabcorp, and Westpac shares are sinking today
• Why are ASX investors so obsessed with dividends?
• What’s going so wrong for ASX 200 shares on Friday?
• Buyer beware! Why Macquarie just downgraded the big four ASX 200 banks

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

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Now could be the time to pounce on TechnologyOne Ltd (ASX: TNE) shares.

That’s the view of analysts at Bell Potter, which have just upgraded the ASX 200 tech stock.

What did the broker say about this ASX 200 tech stock?

Bell Potter has been looking ahead to the release of the company’s half-year results in May. The good news is that the broker is expecting a strong result from the enterprise software provider.

It highlights that the net revenue retention (NRR) metric will be a major focus for the market with these results. That’s because this will be the first result that its NRR metric hasn’t been boosted from its customer base transitioning to subscription plans. Bell Potter commented:

The NRR in each of the last two years has been >115% which is strong and above the industry average but a reasonable portion of the average additional revenue per customer has been generated through SaaS flips (where customers pay around twice what they were paying before).

SaaS flips were largely completed, however, by the end of FY23 so will provide little boost to NRR in FY24 and the $64m question is whether Technology One can maintain an NRR of around 115% or more without these flips.

Bell Potter believes the ASX 200 tech stock can continue this trend in FY 2024 and beyond, which it expects to go down well with the market. It said:

Our view is it can through a combination of other drivers […] and such an outcome in 1HFY24 (and beyond) would be well received by the market in our view given it implies or suggests the outlook remains positive and the company can double revenue every five years or so via organic growth alone.

These drivers are expected to include inflation, more products and modules, its SaaS+ offering, the upgrade to CiA fourth generation software, and the recent launch of DXP LG.

Upgraded to a buy rating

According to the note, the broker has upgraded the ASX 200 tech stock to a buy rating with an improved price target of $18.50.

Based on its current share price of $16.50, this implies potential upside of approximately 12.1% for investors over the next 12 months.

Bell Potter also expects a modest 1.3% dividend yield to boost the total potential return to almost 13.5%.

The post Guess which ASX 200 tech stock has just been upgraded appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Are you investing or gambling?
• These ASX 200 growth shares could be strong buys in March

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

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The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price performance has been very disappointing. Since mid-January, it’s down by 26% and has sunk more than 70% from 10 September 2021. It has been one of the worst-performing S&P/ASX 200 Index (ASX: XJO) shares in the last two and a half years. Can it regain those former lofty heights?

It won’t be an easy journey if it is to achieve that previous level. The $161 peak was achieved when interest rates were almost 0% and during the COVID period, when there was very strong demand for delivered food.

Since then, it has decided to exit the Danish market, and overall demand in areas of its markets is not as strong as it was.

Early signs of recovery

To excite investors, the company needs to start reporting growth again.

A company’s management will always look on the positive side of things, but I think the outlook commentary in the FY24 first-half result was positive.

In the first seven weeks of the second half of FY24, total network sales were up 3.7% with same-store sales growth (SSS) of 3%, with ANZ seeing same-store sales growth of 8.4%.

If the company can deliver an overall compound annual growth rate (CAGR) of SSS of at least 3% over the long term, I think its organic growth will be solid and help propel the business higher.

Domino’s said its new organisational structure is delivering increased efficiencies and savings for the network.

The company’s established markets “continue to identify new approaches to add incremental customers, and are continually working to add new occasions and growing existing day parts.”

Large long-term goals

The business has confirmed its long-term network store goals, which could be invaluable for boosting the Domino’s share price in the future.

It wants to reach 3,000 Asian stores by 2033, which would be roughly doubling the store count from here.

Domino’s has a goal of 1,200 stores by 2028, which would be 1.3 times its current size.

For the European market, Domino’s wants to get to 2,900 stores by 2033, which would be a doubling of the size of the current network.

Overall, the company is aiming for 7,100 stores by 2033, which would be 1.9 times its current size.

Domino’s said store expansion is important to the growth of franchise partners and to the ASX share, but relies on improved unit economics.

It would be quite logical for a doubling of the network size to at least double the Domino’s share price. Operational leverage can lead to profit rising faster than revenue and network growth.

Profit projection

The broker UBS thinks Domino’s can roughly double its earnings per share (EPS) between now and FY28. Forecasts that far away shouldn’t be relied on closely, but they give a general idea of the direction profit could go.

If Domino’s can achieve the forecast FY28 profit, the Domino’s share price is valued at 16 times FY28’s estimated earnings.

It could take longer than FY28 for the business to get back to $160, but it doesn’t need to get back to that level to do well. A doubling of the share price in five years would be a very commendable return. At this lower valuation, after the declines, I think it could be a longer-term turnaround opportunity.

The post Can the Domino’s share price ever get back to $161? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up last week
• Here are the top 10 ASX 200 shares today
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• What’s going so wrong for ASX 200 shares on Friday?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for some new additions to your income portfolio? If you are, then keep reading.

That’s because listed below are three ASX 200 dividend giants that brokers have recently named as buys and tipped to offer generous dividend yields.

Here’s what you need to know:

BHP Group Ltd (ASX: BHP)

This mining behemoth could be in the buy zone according to analysts at Goldman Sachs.

In response to its half-year results last month, the broker retained its buy rating with a $49.40 price target. This suggests material upside for investors thanks to a recent pullback in its share price.

In respect to dividends, the broker is now forecasting fully franked dividends of approximately US$1.45 per share (A$2.21 per share) in FY 2024 and then US$1.28 per share (A$1.95 per share) in FY 2025. Based on the current BHP share price of $42.41, this equates to yields of 5.2% and 4.6%, respectively.

Telstra Group Ltd (ASX: TLS)

Another ASX 200 dividend giant that could be a buy is telco Telstra.

Goldman Sachs is also a fan of the company and has a buy and $4.55 price target on its shares. Much like BHP shares, this implies material upside for investors because of recent weakness in its share price.

And also like BHP, the broker is expecting attractive yields from its shares. It is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.83, this equates to fully franked yields of 4.7% and 5%, respectively.

Woodside Energy Group Ltd (ASX: WDS)

A final ASX 200 dividend share that analysts think could be in the buy zone right now is Woodside Energy.

Morgans is positive on the company and recently put an add rating and $34.20 price target on its shares.

Its analysts are also expecting some decent dividend yields from Woodside’s shares in the near term. Morgans is forecasting the energy giant to pay a fully franked dividend of $1.36 per share in FY 2024 and then $1.12 per share in FY 2025. Based on the current Woodside share price of $29.86, this equates to 4.5% and 3.75% dividend yields, respectively, for investors.

The post Buy Woodside shares and these ASX 200 dividend giants now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Origin Energy Ltd (ASX: ORG) stock price has climbed 14% in three months. That compares to a 3.3% rise for the S&P/ASX 200 Index (ASX: XJO).

Despite the company’s rise, some people believe the ASX energy share can keep climbing.

The Origin Energy stock price has suffered in the last three months of 2023 after the takeover attempt by Brookfield was denied by shareholders, including AustralianSuper.

More gains to come?

AustralianSuper built a large stake in the business and was influential in blocking the takeover going ahead.

Some investors were focused on the issue of the environment – would the planet be better off if Origin was under the control of Brookfield or remained a listed business? AustralianSuper’s CEO Paul Schroder was quoted by The Australian saying the following:

We had some really good engagement with (Origin). But I do want to call out some behaviour which was despicable.

For people to say that funds who have one view or another were either ‘wreckers’
of the environment or not, or some other spurious kinds of things that were talked
about.

We’re investors, we think it’s a great company with great assets and good management. We think it’s worth more. That’s it.

AustralianSuper is convinced that Origin will play a “significant role” in the energy transition.

It may cost many billions to get Australia to net zero over the decades, but Origin could be one of the key contributors.

Schroder then said:

I think we (AustralianSuper) and Brookfield think exactly the same about how
much it’s worth, and they just had a view about how much they could get it for,
basically.

We have a very strong conviction about the future of that company.

How valuable is Origin Energy stock?

Ultimately, it’s up to each investor to decide what the ASX energy share is worth.

Brookfield was trying to buy Origin for $9.39 per share. That’s currently 3% higher than where it is right now, which isn’t much of a possible rise, though AustralianSuper thinks it’s worth more.

According to the estimates on Commsec, the Origin Energy stock price could be valued at just 11 times FY25’s estimated earnings.

The business will need to balance profitability with investing in renewable energy. There’s a large opportunity for big players, but I think there are a number of other ASX shares that aren’t as capital-intensive and more attractive.

The post Is Origin Energy stock ‘worth more’? appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Why Appen, Aussie Broadband, Core Lithium, and Westpac shares are dropping today
• Why Arafura, Bubs, Clinuvel, and Superloop shares are racing higher today
• Why are Superloop shares jumping 34% and Aussie Broadband shares sinking 25%?
• Key takeouts for ASX shares this earnings season: CBA analysis

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

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