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The Telstra Group Ltd (ASX: TLS) share price has risen by around 30% over the last two years. The telco’s plans could see it rise even further in the coming years if all goes well.

2022 has been a volatile year for the telecommunications company, and most of the ASX share market. But, the Telstra share price is virtually where it was 12 months ago.

The business has been working on its T22 strategy for a few years. Now the business is working on a T25 strategy that will form a big part of the next five years, so let’s look at that plan.

T25 strategy

There are several initiatives within the plan which will help Telstra’s long-term performance. It includes:

• Network coverage – Telstra wants to cover 95% of Australia’s population with 5G access. The business has already invested a lot to ensure it has a leading mobile network, but it will increase its 4G and 5G network footprint by 100,000 square kilometres. By the end of FY24, 4G coverage will reach 100% of its network. At the end of FY25, 80% of all mobile traffic is expected to be on 5G. The business will achieve “greater access to towers assets with 250 new towers and 700 additional tenancies”, and it has signed a regional sharing agreement with TPG Telecom Ltd (ASX: TPG).
• Revenue growth – Adding more subscribers has always been an important part of the telco’s growth strategy, and it continues to add users. But, it’s also planning to increase prices in line with inflation, which could be a very handy natural boost for revenue. Plus, the business is working on growing additional businesses including Telstra Health and Telstra Energy.
• Profit margin improvement – The biggest thing that could benefit the Telstra share price is profit growth. Telstra is planning to cut another $500 million of net fixed costs out of the business by FY25. In the next few years to FY25, the business is aiming to grow underlying earnings before interest, tax, depreciation and amortisation (EBITDA) at a compound annual growth rate (CAGR) of “mid-single” digits and grow underlying earnings per share (EPS) at a CAGR in the “high-teens”.
• Grow dividends – Shareholders have enjoyed a lot of dividend income from Telstra over the years. If it can grow its earnings and cash flow, then it can fund higher payouts to investors. In the FY22 result, it grew its final dividend from 8 cents per share to 8.5 cents per share.

My thoughts on the Telstra share price potential

I think Telstra has done a good job of turning things around. The reduction of the cost base is making it more profitable, revenue growth is looking positive and earnings diversification seems like a good move.

If it can grow underlying EPS at a good rate, then this could be a useful boost for investor sentiment, and enable Telstra to invest further in the business for more growth.

As Telstra rolls out its 5G coverage, this unlocks the potential for the company to provide fixed wireless internet for households – 5G-based broadband. This could enable the business to capture more of the profit margin for broadband customers, which has been lost to the NBN.

I think the Telstra share price and dividend look promising for the next five years, so I’d happily own it in my portfolio for the next five years and beyond.

According to CMC Markets, Telstra is valued at 21 times FY24’s estimated earnings with a projected grossed-up dividend yield of 6.4%.

The post Where will Telstra shares be in 5 years? appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Buy Telstra and this ASX dividend share: experts
• Here are 2 of the best ASX dividend shares to buy: Morgans
• Can the Telstra share price finish 2022 with a bang in December?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 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 Fortescue Metals Group Limited (ASX: FMG) share price has rocketed over the last 30 days. Its gains have likely left some investors wondering if now is a good time to lock in some profits.

This time last month, the Fortescue share price was trading at $15.87. As of Monday’s close, it’s sitting at $21.03. That marks a notable 32.5% gain in that time.

So, where might the S&P/ASX 200 Index (ASX: XJO) iron ore stock go from here, and should shareholders cash in some chips following its rally? Here’s what experts think.

Should investors bail on Fortescue shares after recent gains?

The Fortescue share price has taken off over the last few weeks. Could its upwards trajectory continue? Well, that depends on who you ask.

Argonaut’s Harrison Massey thinks not. He said, courtesy of The Bull:

China’s zero COVID-19 policy can impact demand for iron ore and slow its economy. We don’t expect China’s pandemic policy to be removed in the short term.

Investors may want to consider taking a profit at these levels.

The expert’s warning follows a record-breaking month for the iron ore price. It lifted from around US$80 per tonne to approximately US$100 per tonne in November.

The commodity’s rally was arguably sparked by the hope China could relax some of its strict COVID-19 restrictions. While further outbreaks might have dashed some hope of a Chinese reopening, it hasn’t seemingly dampened the spirits of Red Leaf Securities’ John Athanasiou.

Athanasiou labelled the stock a hold last week, commenting, as per The Bull:

We believe the [Fortescue] share price has also been benefiting from speculation that China will ease COVID-19 restrictions. Consequently, this may push up the iron ore price.

In addition to a favourable outlook on iron ore prices, Athanasiou was also impressed by Fortescue’s latest quarterly report.

It posted a 4% increase in iron ore shipments, lifting to 47.5 million tonnes, and an average revenue of US$87 per dry metric tonne.

The post Up 30% in a month, is it time to cash in some chips on Fortescue shares? appeared first on The Motley Fool Australia.

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More reading

• ‘Highest quality companies’: Expert names 2 ASX shares to buy now
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Why has the BHP share price bolted out the gates on Monday?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has had an odd year. The ASX bank share is down 11% in 2022 to date, but it’s up 17% since mid-June.

With a rising interest rate environment, some investors may be confused about why the ANZ share price isn’t trading higher across the year.

As we know, the Reserve Bank of Australia (RBA) has been increasing interest rates for many months in a row. ASX bank shares like ANZ have passed the higher rates onto borrowers quicker than savers. This has meant that ANZ’s lending prospective profitability has increased, which is measured by the net interest margin (NIM).

What’s happening in December and beyond?

The RBA is expected to increase the interest rate again by 0.25% this week, though how much further it goes is a big question. Will this be the last rate rise? Or will it need to go further to bring inflation under control? What commentary will the RBA provide about future rises?

ANZ says that the environment will “continue to be supportive for margins in the first half”, although any change from the exit NIM margin of 1.8% in September 2022 is likely to be “more modest”.

Currently, there are competing thoughts about what a higher NIM means. When ANZ released its FY22 result, it outlined that it was expecting the RBA cash rate to reach 3.60% by June 2023 and stay there for at least 12 months.

This could boost net interest income by $1.5 billion in FY23 and $3.2 billion in FY25. In margin terms, it could boost the NIM by 17 basis points (0.17%) in FY23 and 34 basis points (0.34%) in FY25. This could be why investors have sent the ANZ share price higher in recent months.

ANZ has already seen a major boost to its NIM, and it’s saying that more rate increases won’t be as much of a boost. But, higher rates would likely hurt its loan book. Borrowers can only absorb a certain amount into their budget before their mortgage repayments are too expensive. That tipping point is when bank bad debts would likely start escalating.

But, ANZ CEO Shayne Elliott pointed out that RBA data showed “aggregate household balance sheets, net of liquid assets, are the best they have been for 15 years”. Management believes the business is “in good shape to withstand volatility”.

Broker ratings on the ANZ share price

UBS rates ANZ as a buy, with a price target of $30. A price target is where the broker thinks the share price will be in 12 months. The broker will watch the quality of ANZ’s loan book and how much it can benefit from deposit pricing.

However, broker Morgan Stanley doesn’t think ANZ can rise much further after its run since the middle of the year. Morgan Stanley’s price target is $25.50, implying a small rise in the year ahead.

The post Can ANZ shares finish the year with a strong performance in December? appeared first on The Motley Fool Australia.

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More reading

• Why did the ANZ share price tumble in November while the ASX 200 gained 6%?
• The 3 best-performing ASX 200 bank shares in November revealed
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Bought $1,000 of ANZ shares 10 years ago? Here’s how much dividend income you’ve received
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?

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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If you spot a stock that has risen impressively, you may think, “What a shame I missed out”.

But investors must remember that shares have no memory. It doesn’t care that it has already rocketed up — if the underlying business is going gangbusters then the stock price can continue its journey.

So with this in mind, one expert named two ASX shares this week that he would buy, despite both showing impressive gains in recent times:

‘Well placed to deliver strong growth’

Winemaker Treasury Wine Estates Ltd (ASX: TWE) has defied the market for its shares to be trading 12.2% higher than where it started the year.

In fact, it has rocketed more than 30% since mid-June.

Despite this, Shaw and Partners senior investment advisor Jed Richards would still buy it up right now.

“The global wine giant posted impressive fiscal year 2022 results,” Richards told The Bull.

“Net profit after tax and earnings per share were both up 4% on the prior corresponding period.”

Richards’ team has a high opinion of Treasury Wine’s management team.

“Trading at a material discount to our valuation and other luxury brand owners, Treasury Wine is well placed to deliver strong growth during the next few years, in our view.”

Other professionals largely agree with Richards. According to CMC Markets, six out of eight analysts that cover the stock currently rate Treasury as a buy.

The stock for ‘uncertain times’

Gold prices and gold mining stocks have all risen in recent weeks after a surprisingly stagnant year.

“Gold has historically been an inflation hedge and store of value,” said Richards.

“But even with inflation at multi-decade highs, the gold price has fallen this year.”

But with demand for the precious metal picking up just now, Newcrest Mining Ltd (ASX: NCM) shares have rocketed more than 34% since its September low.

“Newcrest has rallied from its lows recently on the latest US inflation figures, which were lower than expected, leading to a weaker US dollar,” said Richards.

“Gold does have a place in portfolios in uncertain times.”

His peers are somewhat divided on Newcrest. 

Ten of the 17 analysts surveyed on CMC Markets currently reckon the stock is a strong buy. But the other seven rate it as a hold.

The post Wine and gold: 2 ‘impressive’ ASX shares this expert’s loving right now appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday
• ‘This has legs to rally’: Expert names 3 ASX shares that just hit the buy zone
• Experts say these ASX 200 blue chip shares are buys

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 recommended Treasury Wine Estates. 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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Looking for a growth share or maybe two to buy? If you are, you may want to look at the two listed below.

Here’s why these ASX growth shares are rated highly right now:

Lovisa Holdings Limited (ASX: LOV)

This fast-fashion jewellery retailer could be a top option for growth investors right now.

Thanks to the popularity of its affordable offering, its focus on younger consumers, and its ambitious global expansion plans, Lovisa has been tipped to grow strongly in the coming years.

In respect to its expansion plans, the company recently revealed that it has already added a further 47 net new stores to its network in FY 2023. This brings its total to 676 stores across 26 countries. This helped drive exceptionally strong growth financial year to date despite the uncertain economic environment.

Lovisa Holdings $LOV has recorded a 60% lift in total sales over the first 19 weeks of FY23 (including 47 net new stores). Like-for-like sales growth (not incl. store openings) +16.1% on FY22. $LOV now has 676 stores in 26 countries (+100 stores in 12 months).

— CommSec (@CommSec) November 17, 2022

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But it won’t be stopping there. Far from it! Management also advised the retailer’s first stores in Italy, Mexico, and Hungary are due to open in the coming weeks. 

A recent note reveals that UBS has put a buy rating and $29.00 price target on Lovisa’s shares. 

Xero Limited (ASX: XRO)

This cloud accounting platform provider could be another ASX growth to buy for 2023.

Much like Lovisa, Xero has a very strong growth outlook. This is thanks to its huge global market opportunity.

At the last count, Xero was providing its core accounting solution, as well as payroll, workforce management, expenses and projects solutions, to a total of 3.3 million global subscribers.

However, Goldman Sachs points out that Xero has a “compelling global growth story” and is barely even scratching at the surface of its total addressable market (TAM) of ~45 million+ subscribers. In light of this, the broker believes the company is well-placed for strong growth over the next decade and beyond.

Goldman Sachs has a buy rating on Xero’s shares with a $115.00 price target.

The post Buy Xero and this ASX growth share for 2023: analysts appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Morgans names 2 of the best ASX 200 shares to buy in December
• 5 ASX shares you probably didn’t know pay dividends
• Here are the top 10 ASX 200 shares today
• Why Appen, Evolution Mining, Rio Tinto, and Xero shares are racing higher

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Lovisa. 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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Yes, the S&P/ASX 200 Index (ASX: XJO) has roared back, gaining 13.5% since the start of October.

But with steep interest rate rises still yet to fully bite into consumer spending and much of the developed world possibly heading into recession, it’s no time to be profligate with stock choices.

Quality businesses are the name of the game as we head into an uncertain 2023.

Here are a couple of ideas:

‘One of the highest quality companies on the ASX’

Spotee Connect founder Elio D’Amato is a fan of technology services provider TechnologyOne Ltd (ASX: TNE).

“Supported by its loyal and expanding client base, this cloud-based software solutions provider delivered an excellent full-year report,” D’Amato told The Bull.

“It offers a strong balance sheet. TechnologyOne’s objective is more than $500 million in recurring revenue by fiscal year 2026.”

The share price, unlike most of its tech peers, is actually up 8.57% year to date. In fact, TechOne has impressively rallied more than 33% since the start of October.

According to Google Finance, the price-to-earnings ratio now sits at almost 52.

“While some may be quick to point to its lofty valuation, TechnologyOne remains one of the highest quality companies on the ASX, in our opinion.”

D’Amato recommends TechOne shares as a buy, but other experts are a tad more uncertain.

Six out of the nine analysts that cover the stock, according to CMC Markets, are rating the stock as a hold.

‘Double-digit earnings growth and increasing dividends’

In times of rising interest rates, it’s often tricky to figure out where bank shares are headed.

In one camp, experts say rate increases benefit banks because they fatten up net interest margins.

The bears say higher interest rates deteriorate customers’ ability to pay back loans, triggering a rise in defaults, which is adverse for business.

D’Amato is in the former camp, at least for National Australia Bank Ltd (ASX: NAB).

“The bank delivered a strong fiscal year 2022 result,” he said.

“It generated revenue and cash earnings growth on the prior corresponding period, and the business banking division led the way.”

The NAB share price is 6.6% higher than where it started the year, while delivering a 4.8% dividend yield.

D’Amato noted that the changing net interest margin is a boon for the major bank.

“The company widened its net interest margin in the 2022 second half when compared to the first half,” he said.

“The second half net interest margin was above analyst expectations.”

Next year will be even better for NAB investors, D’Amato feels.

“We remain optimistic that NAB can deliver double-digit earnings growth and increasing dividends in fiscal year 2023.”

The post ‘Highest quality companies’: Expert names 2 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 dividend shares to buy for income in 2023: analysts
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Guess which gold share is being booted out of the ASX 200

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 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Tribeca Investment Partners portfolio manager Simon Brown analyses the market in 2022 and predicts where small cap ASX shares are headed in 2023.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Simon Brown: I’m Simon Brown, I’m co-portfolio manager of the Tribeca Smaller Companies Fund. We are a small companies fund focused on stocks that benchmark to the S&P/ASX Small Ordinaries (ASX: XSO). 

We started in 1999, so we’ve been around over 20 years. We’ve managed to outperform the small companies index throughout that period. We target 5% to 7% alpha over that benchmark on a rolling three-year basis. 

We are a fund that doesn’t have any particular growth or value bias. We look to outperform all markets and through all seasons and we’re open to retail and institutional investors alike.

MF: When we last spoke to you, everyone was very happy coming out of the Delta lockdowns and the market was very bullish. 

Now, a year later, where do you think the market is at and where do you think it’s heading?

SB: Coming into Christmas, expectations for the Australian economy have been probably a little bit more upbeat than other global economies such as the US and particularly Europe, which have had some challenges on energy and the impacts from the Russia-Ukraine war.

We’ve been having a bit of a Christmas rally, as the market tends to do. This is a strong seasonal period historically for the markets, and I think you’re seeing that playing out. I think there’s an element of positioning to the rally as well.

I think maybe investors got a bit too bearish and a little bit too underweight [in] the [share] market, and you’re seeing markets can [and] often do take the path of least resistance. At the moment, that path of least resistance seems to be high, given the level of under-positioning, potentially by investors. 

Short interest has been rising, a lot of institutional and hedge fund investors got quite underweight [as] the market, cash levels got quite high. And you’ve come through a period where the central bank rhetoric, particularly in the US, has been quite hawkish. But you’ve seen just the first hits of inflation peaking out and some of those central banks, such as the RBA in Australia, getting a little bit less hawkish, or you might say a little bit more dovish.

Not to say that they’re sort of forecasting rate cuts, but just rate rises going up a little bit more slowly. And it can often be the rate of change slowing, just rates going up, can often be enough, when positioning’s as light as it is, to set off a bit of a rally.

MF: I imagine it’s been a pretty rough year for your fund because smaller caps have really suffered, haven’t they?

SB: Yes. Small caps have taken a bit of a hit, that you tend to [see] in periods of market distress. Investors tend to congregate in more liquid names because they feel they’re a little bit safer. 

And some of those larger cap names also tend to operate in industries that are already pretty well consolidated. If you’d like to think about some of the monopolistic characteristics of say, the classifieds or even the large banks or the supermarkets, where they have a fair degree of pricing power — that’s where investors tend to gravitate in times of market volatility.

So it’s natural that the smaller end tends to be higher beta, they’re a little bit more leveraged to growth, particularly Australian domestic economic growth. Economic growth’s been slowing by the rate rises as central banks try to tackle inflation.

The post This is why ASX small caps are ready for a massive comeback now: fund manager appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 dividend shares to buy for income in 2023: analysts
• 5 things to watch on the ASX 200 on Tuesday
• Why did the Novonix share price crash 16% in November?
• Here are the top 10 ASX 200 shares today
• Why has the BHP share price bolted out the gates on Monday?

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 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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If you’re an income investor looking for dividends to boost your income in 2023, then you may want to consider the ASX shares listed below.

Both of these ASX 200 dividend shares have been rated as buys and tipped to provide investors with attractive yields in the coming years.

Here’s what you need to know about these shares:

Coles Group Ltd (ASX: COL)

This supermarket giant has been tipped as a dividend share to buy by analysts at Morgans.

The broker currently has an add rating and $19.50 price target on its shares. This compares to the latest Coles share price of $16.83.

Morgans believes that Coles’ shares are trading at an attractive level for investors at the current level. Particularly given its defensive characteristics in this uncertain economic environment. The broker commented:

Trading on 20.6x FY23F PE and 4.0% yield, we continue to see COL as offering good value with the company’s solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.

As for dividends, Morgans expects:

• FY 2023 fully franked dividends of 64 cents per share (3.8% yield)
• FY 2024 fully franked dividends of 66 cents per share (3.9% yield)

National Australia Bank Ltd (ASX: NAB)

This big four bank has also been named as a buy for income investors. Goldman Sachs is bullish on the banking giant and has a buy rating and $34.81 price target on its shares. This compares to the latest NAB share price of $31.26.

Goldman Sachs likes NAB due to its exposure to commercial lending, which it expects to perform better than home lending in the current environment. The broker also highlights NAB’s productivity and cost management as big positives. It explained:

We reiterate our Buy on NAB given: i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years, which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s cost management initiatives, which seem further progressed vs. peers.

In respect to dividends, Goldman is forecasting:

• FY 2023 fully franked dividends of $1.66 per share (5.3% yield)
• FY 2024 fully franked dividends of $1.73 per share (5.5% yield)

The post 2 ASX 200 dividend shares to buy for income in 2023: analysts appeared first on The Motley Fool Australia.

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• Can investors bank on a strong finish to 2022 for NAB shares?
• Wondering how the Coles share price fared over November? Here’s how
• Why did the NAB share price underperform the ASX 200 in November?
• The 3 best-performing ASX 200 bank shares in November revealed
• Boost your retirement income with these ASX dividend shares: analysts

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a gain. The benchmark index rose 0.3% to 7,325.6 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to take a tumble on Tuesday following a poor night of trade on Wall Street amid interest rate worries. According to the latest SPI futures, the ASX 200 is poised to open the day 54 points or 0.75% lower. In late trade in the United States, the Dow Jones is down 1.6%, the S&P 500 is down 2.05%, and the NASDAQ has tumbled 2.2%.

Reserve Bank meeting

The Reserve Bank of Australia is meeting later today to decide on the cash rate. According to a note out of Westpac Banking Corp (ASX: WBC), its economists are expecting the central bank to raise the cash rate by 0.25% from 2.85% to 3.1%.

Oil prices sink

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.4% to US$77.29 a barrel and the Brent crude oil price has fallen 3% to US$83.03 a barrel. Oil prices tumbled after economic data increased interest rates worries.

Domino’s named as a buy

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price could be great value according to analysts at Morgans. According to a note, the broker has retained its add rating and lifted its price target to $90.00. It said: “Recent positive share price movements in the global QSR sector, combined with the accretive impact of the [German joint venture] transaction, result in our target price increasing from $88 to $90. We retain an ADD rating.”

Gold price tumbles

Gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.7% to US$1,779.9 an ounce. Concerns over the outlook for interest rates weighed on the precious metal.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Imugene, Rio Tinto, Santos, and Warrego shares are pushing higher
• Guess which gold share is being booted out of the ASX 200
• Warrego Energy share price leaps 12% as takeover battle continues

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Westpac Banking. 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 recommended Domino’s Pizza Enterprises and Westpac Banking. 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 Novonix Ltd (ASX: NVX) share price had a tough run in November.

Novonix shares fell 16.42% between market close on 31 October and 30 November. For perspective, the S&P/ASX 200 Index (ASX: XJO) climbed 6.13% in the same time frame.

Let’s take a look at how Novonix shares performed in November.

What happened?

Novonix shares fell in November following a very strong month in October. The company’s shares soared 52% between market close on 30 September and 31 October.

As my Foolish colleague James noted recently, Novonix shares may have come under pressure in November due to profit taking on the gains in the previous month. Further, battery materials shares were under pressure during the month due to demand concerns from China.

Novonix is a battery materials and technology company working on solutions for electric vehicles and grid energy storage. The company has operations in Canada and the United States.

Novonix provided an update on its US$150 million grant from the US Department of Energy (DOE) in early November. The grant will support the company’s anode materials division to scale up domestic production of synthetic graphite anode materials.

The project is expected to cost about US$1 billion between 2023 and 2025.

On 9 November, Novonix advised it had launched a new pilot production facility for cathode materials.

Commenting on this facility, Novonix CEO and founder Chris Burns said:

Launching our cathode pilot facility is another significant step in NOVONIX’s efforts to pioneer
a North American battery supply chain and revolutionize the sector with high quality materials
and more efficient production methods.

The team at Morgans placed a speculative buy rating and a $3.11 price target on Novonix shares in November.

Novonix share price snapshot

Novonix shares have fallen 72% in the past year, while they have lost 75% year to date.

For perspective, the ASX 200 has climbed 1.17% in the last year.

Novonix has a market capitalisation of about $1.1 billion based on the current share price.

The post Why did the Novonix share price crash 16% in November? appeared first on The Motley Fool Australia.

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More reading

• These were the worst performing ASX 200 shares in November
• Here are the top 10 ASX 200 shares today
• Why has the Novonix share price crumbled 19% in 2 weeks?
• Will ASX 200 tech company Novonix deliver a profit in 2023?
• Are investors losing faith in Novonix shares?

Motley Fool contributor Monica O’Shea 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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