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The last year has been a brilliant one for the Mineral Resources Limited (ASX: MIN) share price. And the fun doesn’t appear to be over yet.

The stock just clocked up another all-time high, this time surging 3.3% to an intraday peak of $88.14. That’s a notable 1.7% higher than its prior record of $86.61, reached yesterday.

The Mineral Resources share price has since retreated somewhat to $86.55. That’s still 1.43% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted 0.69% today.

So, what’s helping drive the ASX 200 mining share higher lately? Let’s take a look.

Mineral Resources share price soars to new record high

There’s been a lot going on to excite the market over the Mineral Resources share price.

Perhaps the major driver of the attention it’s received this year has been its lithium leg.

Morgans was recently quoted as saying the company’s lithium segment is “markedly undervalued“, as my Fool colleague Bronwyn reports.

Meanwhile, the stock could be gearing up to post yet another all-time high, if Goldman Sachs is to be believed. It’s slapped the ASX 200 mining share with a buy rating and a $94 price target.

The company underwent a restructure earlier this year. That separated its lithium activities from its iron ore, energy, and mining services businesses. It also seemingly spurred so-far-unfruitful rumours the ASX 200 giant was considering a lithium spinoff.

Another likely reason the company has been commanding plenty of attention this year could be its position as a producing lithium miner.

That means it’s got a head start on many of the market’s lithium explorers and developers amid surging demand for the battery-making material.

The Minerals Resources share price is currently 47% higher than it was at the start of 2022. It has also gained 96% since this time last year.

For comparison, the ASX 200 has fallen nearly 5% year to date and more than 2% in the last 12 months.

The post Why did the Mineral Resources share price just smash its all-time high? appeared first on The Motley Fool Australia.

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More reading

• 5 ASX lithium shares to buy: brokers
• Are these ASX 200 lithium shares about to become dividend machines?
• These are the ASX dividend shares to buy now: Goldman Sachs
• Could Mineral Resources shareholders be in for ‘a lot of fun’?
• Which are the best ASX lithium shares to buy now for 2023?

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 positions in and has recommended Goldman Sachs. 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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With many experts predicting a bullish 2023, buying ASX shares now would be the prudent action to take if you don’t want to miss the upswing.

But with the economy about to slow down from a series of interest rate hikes, stock selection is absolutely critical.

Fortunately, Shaw and Partners senior investment advisor Adam Dawes had a couple of ideas:

‘Copper is one of those places you need to be’

Sandfire Resources Ltd (ASX: SFR) is a major copper producer.

Dawes told Switzer TV Investing that he’s a big fan of the ASX share as the business supplies a resource for which the world will be hungry for years to come.

“Certainly with the thematic of copper potentially having a drawdown over the next coming two to three years with all of the battery technology that’s going to happen, I certainly think copper is one of those places you need to be.”

Quite brilliantly for Sandfire, its major competitor is about to disappear.

Rival copper extractor OZ Minerals Limited (ASX: OZL) has been courted by BHP Group Ltd (ASX: BHP) for a takeover throughout this year.

And finally, last week, the big Australian got its way, with Oz Minerals agreeing to a 100% acquisition.

“If you take Oz Minerals out of the equation… the only real large copper player left on this market is Sandfire,” said Dawes.

“So a lot of that institutional money that will flow out of Oz Minerals when it goes into BHP has to go somewhere. And the first port of call would be Sandfire.”

Making hay while competitors are demoralised

Respiratory medical device maker Resmed CDI (ASX: RMD) is Dawes’ other ASX share pick.

“We’re very overweight in healthcare, and this does really offer defensive earnings in any kind of storm.”

Resmed’s advantage comes from rival Koninklijke Philips NV (AMS: PHIA) having to perform a safety recall for its devices.

While that episode started last year, it is still having lasting effects.

“It’s a dominant player in the CPAP marketplace, which we’re really really comfortable with,” said Dawes.

“Resmed is definitely on its way to continuing to keep up that market share and becoming dominant in that space, now that Philips had a couple of product recalls.”

He added that the addressable market in sleep apnea treatment is huge, and that market is growing at a much faster rate than the general healthcare industry.

The Resmed share price is down 7% year to date.

The post ‘Dominant player’: Expert urges buying ASX shares in 2 near-monopolies appeared first on The Motley Fool Australia.

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More reading

• 4 ASX 200 shares to buy in an unmissable sector: expert
• Here’s why the Sandfire share price is flaming out on Monday
• Why is the Sandfire share price on ice today?
• Is a weak US dollar good for ASX 200 mining shares?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo has positions in ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. 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 is slightly in the red at lunchtime on Wednesday, trading down 0.18% at $19.17 per share.

Fortescue founder and executive chair Andrew ‘Twiggy’ Forrest AO is at the forefront of Australian business when it comes to climate change adaption and the renewable energy pivot that the whole world has to make.

The establishment of Fortescue Future Industries (FFI) allowed Forrest to capture a first-mover advantage in the mining sector in this regard.

During the height of COVID-19, Forrest was travelling the world seeking business and government partnerships to develop renewable energy, green hydrogen, and green ammonia projects through FFI.

As we reported in September, Forrest says: “We must become the Saudi Arabia, not of oil, but of green hydrogen…”

But could United States subsidies undercut Fortescue’s plans?

Fundie says US subsidies are ‘devastating’ for Australia

According to The Australian, a private investment fund specialising in renewable energy infrastructure, Quinbrook Infrastructure Partners, reckons so.

At a briefing, Quinbrook co-founder David Scaysbrook pointed out that the US Inflation Reduction Act (IRA) includes $US437 billion of subsidies to be spent over 10 years supporting energy and climate change investments.

Scaysbrook said:

The degree of subsidy … will be devastating from a competitive perspective (for Australia).

Scaysbrook elaborated:

… the degree to which the hydrogen supply chain will be subsidised in the United States … will make it very, very difficult for Australia to compete with US exports of green ammonia.

What does Fortescue think of this proposed threat?

Well, they don’t see it as a threat. Pure and simple.

Fortescue Future Industries was actually a key supporter of the IRA, and the CEO Mark Hutchinson describes it as “a brilliant outcome for FFI”.

At yesterday’s annual general meeting (AGM), FFI CEO Mark Hutchinson said:

The recent passage of the Inflation Reduction Act sees the US position itself as a potential green hydrogen superpower.

We worked hard with the US Government, the Whitehouse and Senator Joe Manchin to see the Bill pass. It is game changing for the green hydrogen market globally and a brilliant outcome for FFI.

America is now the greatest place in the world to invest in green energy and we are poised to take advantage of this for our shareholders.

Australia and Europe must now look very closely at what America has done to supercharge green energy or they will be left behind.

Hutchinson said it was “acknowledged internationally already” that FFI is one of the world’s leading developers of green hydrogen.

He added:

Various estimates suggest that green hydrogen will become a multi-trillion-dollar market. The geopolitical environment has only served to speed this up.

Our role is to ensure FFI remains at the forefront of this global movement, to move at a rapid pace to capture this new market, which present a significant opportunity for our business and create significant value for you – our shareholders.

In his own AGM address, Dr Forrest described Fortescue as “the only industrial company to stop the greenwashing and just step beyond fossil fuels to save our kids”.

He actively encouraged other businesses to get cracking on their own plans to combat climate change. That doesn’t sound like a man worried about subsidies to help US companies do so.

Forrest said:

All industrial companies now must act because it is not you the consumer, us, who is at fault here. It is the producers of your energy, your plastic, your goods made with fossil fuel, when they now have a choice to not force you to consume these products which are essential, to destroy your own planet because they won’t accept the solutions that are there. It is they who must change.

The post Could this put a dent in Fortescue’s green hydrogen dreams? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Fortescue, Healius, Nanosonics, and PEXA shares are dropping
• Why is the Rio Tinto share price trailing the ASX 200 on Monday?
• Why is the Fortescue share price getting hammered on Monday?
• Of all the ASX 200 miners, here’s why I decided to buy Fortescue shares

Motley Fool contributor Bronwyn Allen has positions in Fortescue Metals Group Limited. 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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As a blue chip ASX 200 share, Woolworths Group Ltd (ASX: WOW) has long commanded a reputation as a healthy dividend payer. After all, Woolies consistently pays out two dividends per year, a habit it has spent more than three decades honing.

And it has been incredibly lucrative for shareholders. Back in 1994, Woolworth shares were paying out dividends worth 12 cents per share. Last year, investors enjoyed a total of $1.08 per share in dividend income. That’s a very pleasant runway.

But how does this illustrious history stand up today? Let’s check out how much dividend income an investor would have enjoyed from Woolworths shares in 2022.

How much dividend income do Woolworths shares pay today?

So let’s start out by assuming an investor bought $15,000 worth of Woolworths shares at the start of the year. Woolworths finished up 2021 at a share price of $38.01. So if an investor bought $15,000 worth of Woolies shares at that pricing, they would have received 394 shares with a little cash left over.

So Woolworths has again paid out two dividends over 2022. The first was an interim dividend that was paid out in April. This was worth 39 cents per share, fully franked– a significant drop from the 53 cents per share dividend that investors enjoyed in 2021.

Our 394 Woolworths shares would have resulted in a cash payment of $153.66 from this interim dividend.

Then, the company’s final dividend came in September. This was a fully-franked payment worth 53 cents per share, a small drop from the 55 cents per share investors enjoyed last year.

This dividend payment would have yielded a payment of $216.70.

All up, that is a total of $370.36 in dividend income from our $15,000 in 2022. That represents a yield on our cost of 2.47%, or 3.53% grossed-up with Woolies’ full franking.

On today’s Woolworths share price of $35 (at the time of writing), Woolworths has a trailing dividend yield of 2.63%, or 3.76% grossed-up.

The post If you bought $15,000 worth of Woolworths shares this year, here’s how much dividend income you’d have appeared first on The Motley Fool Australia.

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More reading

• Markets are nervous. Why waiting to buy these ASX 200 shares could prove expensive
• Add these ASX 200 shares to your retirement portfolio: experts
• Why is the Woolworths share price having such a wow of a time today?
• Are these the very best ASX 200 shares to buy for 2023?
• I’d use the Warren Buffett method to create a ‘best ASX shares to buy now’ list

Motley Fool contributor Sebastian Bowen 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decent gain. At the time of writing, the benchmark index is up 0.6% to 7,226.7 points.

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

Polynovo Ltd (ASX: PNV)

The PolyNovo share price is down 9% to $1.91. This has been driven by the medical device company completing a $30 million institutional placement at a discount of $1.90 per new share. The proceeds will be used to accelerate growth and fund the construction of a new co-located manufacturing, R&D, and office facility in Port Melbourne.

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price is down 4.5% to $4.67. This morning this fleet management and salary packaging company revealed that it expects to report a profit in the range of $60 million to $61 million for calendar year 2022. This appears to have fallen short of the market’s expectations.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down 6% to $2.70. Investors have been hitting the sell button after Macquarie downgraded the casino operator’s shares to a neutral rating with a trimmed price target of $3.05. The broker made the move following the release of an update which revealed that trading has been softer than expected. Combined with remediation costs, Macquarie has made a sizeable reduction to its earnings estimates.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is down 5% to $54.62. This follows the release of the logistics solutions company’s annual general meeting update. Investors appear disappointed that the company only reaffirmed its guidance at the event. WiseTech expects to deliver revenue growth of 20% to 23% and EBITDA growth of 21% to 30% in FY 2023.

The post Why PolyNovo, Smartgroup, Star, and WiseTech shares are appeared first on The Motley Fool Australia.

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More reading

• Why is the WiseTech share price wilting 5% on Wednesday?
• Why is the PolyNovo share price sinking 7% today?
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Polynovo share price on ice today?
• 5 things to watch on the ASX 200 on Tuesday

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 POLYNOVO FPO and WiseTech Global. The Motley Fool Australia has positions in and has recommended SMARTGROUP DEF SET and WiseTech Global. 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 I’d snapped up $5,000 worth of National Australia Bank Ltd (ASX: NAB) shares on the first session of 2022, I’d be pretty happy with my buy right now. Here’s how my investment would have worked out so far.

NAB shares outperform in 2022

If I had bought $5,000 worth of NAB shares on 4 January, I likely would have bought 170 shares in the S&P/ASX 200 Index (ASX: XJO) bank for $29.40 apiece.

That would have started off as a winning buy. The NAB share price launched upwards to a 52-week high in April, topping out at $33.75.

At that point, my initial $5,000 investment would have held a value of $5,737.50 – not too shabby for just four months.

However, the high didn’t last long. The bank’s stock plummeted to a low of $25.43 in mid-June amid the Reserve Bank of Australia’s first 0.5% rate hike.

At that moment, my imagined 34 shares would have commanded just $4,323.10 on the market.

Fortunately, things have since turned around for the NAB share price. It’s trading at $31.28 at the time of writing.

That means my figurative investment would be worth $5,317.60 right now. That’s a decent 11-month return and we haven’t even considered dividends yet.

What about dividends?

NAB has declared two dividends in 2022.

The first, its interim dividend, was worth 73 cents per share and was paid in July.

The bank announced its final dividend -worth 78 cents per share ­– earlier this month. That will be paid out in December.

That means an investor who held 170 shares in NAB this year will likely receive a total of $256.70 in dividends this year.

What might the future bring for NAB shares?

While past performance doesn’t guarantee future performance, the outlook for NAB shares is bright, according to Goldman Sachs.

The broker thinks the bank can pay out $1.73 per share in dividends this fiscal year and $1.78 in the next.

It also tips the stock to lift to $35.41 – a potential 13% upside – and slapped it with a buy rating.

Thus, if I had invested $5,000 in NAB shares at the start of 2022, I’d still be holding onto my investment today.

The post If I’d bought $5,000 of NAB shares at the start of this year, guess how much I’d have now appeared first on The Motley Fool Australia.

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More reading

• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’
• 4 quality, undervalued ASX 200 shares in an earnings upgrade cycle revealed: fund manager
• Are ASX 200 bank shares a buying opportunity hiding in plain sight?
• 3 reasons why I think it’s time to snap up NAB shares
• Why these 3 ASX 200 shares have done ‘particularly well’ and remain top holdings into 2023: fund manager

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 positions in and has recommended Goldman Sachs. 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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Despite the recent gains of the S&P/ASX 200 Index (ASX: XJO), there’s little doubt that the share market is still going through 2022 on a wary footing.

Yes, the ASX 200 has bounced back rather spectacularly over the past six weeks or so, rising around 12% since the start of October. But the ASX 200 still remains down by 4.55% year to date.

This year has also seen the ASX 200 seesaw rather violently. In April, the index was over 7,500 points. But by June, it was back under 6,500 points – a swing of 15% in just two months. Inflation, war, and rising interest rates have all played their part in denting investor confidence this year.

Although many ASX 200 shares have performed admirably this year – I’m thinking of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woodside Energy Group Ltd (ASX: WDS) – many have not.

Take Telstra Group Ltd (ASX: TLS). Telstra shares remain down by more than 6.5% in 2022. Woolworths Group Ltd (ASX: WOW) shares have lost close to 9% over the same period, while Macquarie Group Ltd (ASX: MQG) and Wesfarmers Ltd (ASX: WES) shares are down by 15.5% and 18.4% respectively.

And that’s just the blue chips. Domino’s Pizza Enterprises Ltd (ASX: DMP) sales are down more than 47% this year. The Xero Limited (ASX: XRO) share price has lost more than 54% of its value. REA Group Ltd (ASX: REA)? It’s nursing a 30% loss.

There are many ASX investing favourites out there whose valuations have been bulldozed this year.

So perhaps investors should sit on the sidelines with these shares and wait for a recovery before buying in.

What would Buffett do?

Well, one could do that. But here’s why I think sitting on the sidelines is a terrible idea. It might feel better to buy a share when everyone else is buying it and it is rising in value. We humans do love some positive reinforcement.

But according to the legendary investor Warren Buffett, this might just be the exact wrong time to buy in.

Buffett once told us that, “Long ago, Ben Graham taught me that ‘price is what you pay; value is what you get’. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

Buffett also once said this: “First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is your enemy.”

So Buffett is saying that the best time to buy a top company is when its shares are feared by the market for no good reason.

Companies like REA and Xero haven’t seen their revenues or profits collapse by 30% or 54%. In fact, Xero grew its revenues by 19% in FY2022, and its earnings by 11%.

REA Group’s annual general meeting earlier this month revealed the company is on track to record a 26% rise in revenues and a 25% surge in net profits.

Yet we have seen devastation in these companies’ share prices. If REA and Xero keep growing next year and the year after that, then today’s share prices could be a bargain in hindsight. And Buffett does warn that share price sales don’t last forever.

So waiting until these sorts of share prices recover could be an expensive mistake for investors to make.

The post Markets are nervous. Why waiting to buy these ASX 200 shares could prove expensive appeared first on The Motley Fool Australia.

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More reading

• 3 dividend-paying ASX growth shares I would buy to retire rich
• Looking to buy ANZ shares? Here’s why the ASX 200 bank is hitting headlines
• Guess which ASX 200 bank share just upped its final dividend by 580%
• Are these ASX 200 lithium shares about to become dividend machines?
• 3 ASX 200 shares with enormous insider ownership

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited, Wesfarmers Limited, and Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited, Macquarie Group Limited, and REA Group Limited. 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 WiseTech Global Ltd (ASX: WTC) share price is having a tough time on Wednesday.

At the time of writing, the logistics solutions company’s shares are down 5% to $54.88.

This compares unfavourably to the S&P/ASX 200 Index (ASX: XJO), which is up 0.8% this afternoon.

Why is the WiseTech share price falling?

The weakness in the WiseTech share price today appears to have been driven by the company’s annual general meeting update.

Over the last few years, WiseTech has gained a reputation for under-promising and over-delivering. This has seen the company upgrade its guidance countless times when giving updates.

And given that the company’s CEO has been selling shares periodically over the last few months, the market was pretty certain WiseTech was at least on track to achieve its guidance in FY 2023. After all, it wouldn’t be a good look if a CEO sells a large number of shares just before a guidance downgrade.

However, investors betting on a guidance upgrade at today’s event have been left disappointed, with management reiterating its previous FY 2023 outlook.

What is expected in FY 2023?

WiseTech’s CEO, Richard White, revealed that the trading has been in line with expectations during the first half. He said:

The business is tracking in line with expectations, and I am happy to reconfirm our FY23 guidance. We expect to deliver 20 to 23% FY23 total revenue growth to between $755 million and $780 million, with CargoWise revenue expected to grow by approximately 30 to 35%, excluding FX. In terms of FY23 EBITDA we expect to deliver 21 to 30% growth equating to $385 million to $415 million, based on no material change in market conditions.

This represents a further expansion of our EBITDA margin by between 1 and 3 percentage points, demonstrating the continued operating leverage we’re able to generate as we scale. We’re delighted with the continued momentum we’re seeing across the business and confident in our longer-term outlook.

The post Why is the WiseTech share price wilting 5% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Guess which ASX 200 tech insider has sold $12.9m of their company’s shares in just 2 weeks
• 8 All Ords shares that soared 10% or more today
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 tech shares booming 10% or more on Friday

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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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 CSL Limited (ASX: CSL) share price cracked the $300 threshold for only the third time in 2022 this morning. The ASX healthcare share is up 1.53% at $301.38 in early morning trading.

There is no news out from the health giant itself today.

However, according to the Australian Financial Review (AFR), broker Wilsons has just issued a note to clients reporting that CSL’s Hemgenix drug has been approved in the United States.

This is a world first, with the drug being the first and only one-time gene therapy for adults with haemophilia B to go to market.

Wilsons says it will “expand and fortify CSL’s leadership position in Haemophilia B, already established with Idelvion”.

Wilsons anticipates a commercial launch in FY24.

World-first drug approval for haemophilia B

According to The Australian, CSL CEO Paul Perreault says the United States Food and Drug Administration’s decision is a “historic approval”.

Perreault says:

CSL is committed to delivering innovative and groundbreaking solutions to address unmet medical needs, and we are proud to introduce the next wave of breakthrough medicines for people living with haemophilia B.

What’s next for the CSL share price?

CSL became a $300-plus stock for the first time in January 2020. It rose as high as about $340 before the COVID-19 crash brought it down into the $270 range.

Since then, it has risen above $300 on a number of occasions but hasn’t been able to hold above that threshold for any significant length of time.

But both Wilsons and Citi think it can over the next 12 months.

Top brokers say CSL share price will go well beyond $300 in 2023

As my colleague James reported on Monday, top broker Citi has reaffirmed its expectations that the CSL share price will reach $340 by about this time last year.

In a new note, the broker has retained its buy rating on CSL shares.

Citi likes CSL’s commitment to research and development. On 3 November, CSL held an investor briefing regarding its R&D activities.

Citi highlights that CSL plans to continue spending more than US$1 billion on R&D for the foreseeable future.

CSL spent US$1.156 billion in FY22, which was about 11% of the company’s revenue.

Citi commented:

CSL will continue to spend ~10-11% of revenue on R&D annually. The pipeline now includes assets from recently acquired Vifor with two assets in Phase 3.

Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.

Wilsons is valuing CSL’s drug development pipeline at $62 per share. It values its core business at $265 per share.

So, all up, Wilsons is tipping a 12-month share price target of $327 for CSL and has an overweight rating.

Wilsons said in its client note:

The potential to replace ≥10 years of regular prophylactic management for these patients with a single shot of Hemgenix is a powerful driver of sector dominance, which brings with it margin expansion and sales leverage opportunities within the CSL Behring recombinant haemophilia (rHaem) portfolio.

Wilsons forecasts a 12.3% bump to earnings per share (EPS) in FY23 and a net profit of $US2.5 billion.

The European Medicines Agency is also reviewing the Hemgenix drug for approval.

The post Why did the CSL share price just crack $300 for only the third time in 2022? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL 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 Scott Phillips.

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If you’re an income investor, then you may want to consider the Coles Group Ltd (ASX: COL) dividend.

That’s the view of analysts at Morgans, which currently have a buy recommendation on the supermarket giant’s shares.

Is Coles a share to buy?

According to a recent note, the broker has put an add rating and $19.50 price target on its shares.

Based on the current Coles share price of $17.16, this implies potential upside of almost 14% for investors over the next 12 months.

Morgans likes the company in the current environment due partly to its defensive qualities.

The broker also sees plenty of value in its shares at current levels and expects Coles to benefit from a reversal in consumer shopping trends post-COVID. The latter refers to shoppers returning back to supermarkets after shopping locally.

The broker commented:

[W]e 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.

What about the Coles dividend?

Morgans is expecting an attractive dividend yield from Coles’ shares in 2023.

The broker has pencilled in a 64 cents per share fully franked dividend for this financial year, which will be up modestly from 63 cents per share in FY 2021.

Based on the current Coles share price, this will mean a 3.7% yield for income investors.

Looking ahead, the broker expects the Coles dividend to grow again in FY 2024 and is forecasting a fully franked payout of 66 cents per share. This represents a yield of 3.85% based on today’s share price.

All in all, this could make Coles a good option if you’re seeking defensive options with attractive yields.

The post How big will the Coles dividend be in 2023? appeared first on The Motley Fool Australia.

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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 positions in and has recommended COLESGROUP DEF SET. 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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