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

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

Even well into his 90s, Warren Buffett still commands the respect of the investing community. Many investors watch the Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) leader’s every move when it comes to stock market decisions, and Buffett is never shy about making aggressive moves when it suits him.

The most recent disclosures from Berkshire regarding its stock portfolio included a new position in a tech stock, Taiwan Semiconductor Manufacturing (NYSE: TSM). Over the years, Buffett has at times expressed a reluctance to invest in tech stocks, considering the industry to be outside his circle of maximum competence as an investor.

Nevertheless, Taiwan Semi isn’t the first tech stock to make Berkshire’s portfolio, and it’s clear from his past choices that there are certain attributes Buffett seeks out in adding technology-focused companies to the list. Those same things can help you when you’re looking to invest in unfamiliar waters, whether it’s in technology or other types of stocks.

1. Industry leadership

Buffett has typically chosen tech stocks that have already become leaders in their respective industries. The most obvious example is Apple (NASDAQ: AAPL), which remains the dominant company in electronic devices of many different sorts. From iPhones and Apple Watches to Mac computers and various tablets, Apple is a favorite among its customers and always has people watching for its latest product releases.

This trait is evident in other companies in the Berkshire portfolio. HP (NYSE: HPQ) has long been the industry leader in computer printers, while Activision Blizzard (NASDAQ: ATVI) is one of a handful of top players in the video game industry.

Taiwan Semi meets that bill as well, with a commanding market share over 50% in the semiconductor foundry market. The vast majority of cutting-edge chips get made by Taiwan Semi, and that trend appears likely to continue as chip designers more frequently turn to the foundry specialist for production rather than making costly provisions to make chips in-house.

2. Good value

Buffett is the quintessential value investor, sticking to his guns even when the style goes out of favor. With a current valuation of around 15 times trailing earnings, Taiwan Semi fits the mold of Buffett-held tech stocks.

Apple’s valuation has expanded dramatically since Buffett’s initial purchases, but when he started his position, the tech leader traded at much lower earnings multiples. Meanwhile, HP also trades at rock-bottom levels by traditional valuation metrics, as investors anticipate a drop in earnings following pandemic-spurred purchases of printers and other equipment. Activision is somewhat of a special case, given its pending potential acquisition by Microsoft (NASDAQ: MSFT), but that still makes it a value play of sorts.

3. Growth prospects

Despite looking for value, Buffett also wants companies that have growth potential. Taiwan Semi looks prepared to keep extending its competitive advantages and serving an even wider array of semiconductor clients. Apple has also managed to keep growing with innovative new offerings and updated product lines on existing favorites.

Of course, sometimes Buffett gets things wrong. His past ownership of IBM (NYSE: IBM) hinged on the pioneering computer company’s ability to use its strong brand and financial resources to find new niches for leadership, but IBM largely failed to restore its business to its former glory. That eventually led many to see Buffett’s purchase of Big Blue as a big mistake.

Expanding your horizons

When you consider looking beyond your core area of expertise for investing ideas, it doesn’t hurt to look for these three favorable characteristics. Regardless of whether you’re talking about tech or a completely different sector, looking for an attractive combination of current value and future growth always makes sense, and you’ll often find the most stable and secure businesses among the current leaders of a promising industry. 

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

The post What Warren Buffett wants from tech stocks appeared first on The Motley Fool Australia.

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• Here’s why the Sandfire share price is flaming out on Monday
• Why is the Woolworths share price having such a wow of a time today?
• Leading brokers name 3 ASX shares to buy today
• Up 50% in 2 weeks, this ASX hydrogen share is still a buy: expert
• Hamish Douglass has been selling down his Magellan shares. Should you?

Dan Caplinger has positions in Apple, Berkshire Hathaway (B shares), and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Activision Blizzard, Apple, and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Sandfire Resources Ltd (ASX: SFR) share price is starting the week in the red.

In afternoon trade, the copper miner’s shares are down 0.5% to $4.76.

Why is the Sandfire share price falling?

The weakness in the Sandfire share price today has been driven by the company completing its institutional placement.

According to the release, the company has successfully closed the institutional component of its 1 for 8.8 pro-rata accelerated non-renounceable entitlement offer to raise approximately $147 million.

These funds were raised at an offer price of $4.30 per share, which represents a 10.2% discount to the last closing price of $4.79. In light of this discount, today’s modest decline by the Sandfire share price is pretty good outcome for shareholders.

A further $53 million will now be raised via a fully underwritten retail entitlement offer.

Why is Sandfire raising funds?

Management notes that the equity raising strengthens Sandfire’s balance sheet, providing enhanced financial flexibility. It also ensures that the company remains well funded to progress its ongoing strategic growth initiatives and exploration across its portfolio.

Furthermore, proceeds will be used to repay the ANZ Corporate Debt Facility and fund increased working capital as Motheo progresses from construction to first production and ramp up. This is expected from early in the fourth quarter of FY 2023.

Sandfire chair, John Richards, commented:

We are very pleased with the level of support shown by our shareholders for the Institutional Entitlement Offer. This raising increases our financial flexibility, putting the Company in a strong financial position to continue to execute our strategy to deliver growing and sustainable copper production from our portfolio of leading international projects.

The post Here’s why the Sandfire share price is flaming out on Monday appeared first on The Motley Fool Australia.

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• 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
• Dig this! Look how many of the top-performing ASX 200 shares today are miners
• 4 ASX 200 shares to play the global decarbonisation theme: fund manager

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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The Woolworths Group Ltd (ASX: WOW) share price is in the green today despite the broader market’s slump.

Right now, stock in the supermarket giant is up 1.04%, trading for $35.02. For comparison, the S&P/ASX 200 Index (ASX: XJO) has slumped 0.18%.

So, what might be going right for the Woolies share price on Monday? Let’s take a look.

What’s boosting the Woolworths share price today?

The Woolworths share price is outperforming today alongside the company’s home sector.

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is also up 0.98% at the time of writing, which might be rubbing off on the Woolworths share price.

Among the Consumer Staples index leaders is Woolies’ peer Coles Group Ltd (ASX: COL). Stock in Coles has lifted 1.45% right now.

Shares in Endeavour Group Ltd (ASX: EDV) – spun out of Woolworths last year – are also gaining, rising 0.63%.

The last time the market heard price-sensitive news from Woolworths was a little over two weeks ago. Then, it dropped an update on its performance over the three months ended 30 September.

The stock tumbled 3.5% on the update’s release. Fortunately, it has since regained that loss, and more.

The Woolworths share price is currently 6% higher than it was this time last month. Though, it’s still 9% lower than it was at the start of 2022 and 13% lower than it was this time last year.

For comparison, the ASX 200 has dumped 6% year to date and 3% over the last 12 months.

The post Why is the Woolworths share price having such a wow of a time today? appeared first on The Motley Fool Australia.

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• Are these the very best ASX 200 shares to buy for 2023?
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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 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Champion Iron Ltd (ASX: CIA)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $6.90 price target on this iron ore miner’s shares. The broker likes Champion Iron due to the doubling of its production of high grade iron ore to 16Mtpa and strong free cash flow ramp-up from FY 2023. In addition, it highlights that the company’s shares trade at an attractive 0.85x net asset value. The Champion Iron share price is trading at $6.04 on Monday afternoon.

Lovisa Holdings Ltd (ASX: LOV)

A note out of UBS reveals that its analysts have upgraded this fashion jewellery retailer’s shares to a buy rating with an improved price target of $29.00. The broker was impressed with Lovisa’s trading update and notes that it is outperforming peers. UBS was also pleased to see the company’s global expansion has continued, with several new markets about to be entered. All in all, UBS has upgraded its earnings estimates meaningfully and lifted its valuation accordingly. The Lovisa share price is fetching $24.45 today.

NIB Holdings Limited (ASX: NHF)

Analysts at Morgans have retained their add rating and lifted their price target on this health insurer’s shares to $8.54. Morgans has been pleased with the company’s strong start to the financial year, highlighting its solid policyholder growth and favourable claims environment. This has led to Morgans upgrading its earnings estimates for the near term. The NIB share price is trading at $7.18 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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• Is this ASX 200 share the gift that keeps on giving?
• Here are the top 10 ASX 200 shares today
• The $6 ASX 200 mining share that ‘absolutely should’ trade in line with Fortescue: fundie
• NIB share price surges ahead as profits soar 31%
• Lovisa share price charges to record high on 60% sales boost

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 Lovisa Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd and NIB Holdings 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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This ASX hydrogen share has soared ahead in recent times, but could it go even higher?

The ReNu Energy Ltd (ASX: RNE) share price has soared 50% since 7 November and is currently trading at 6 cents.

Let’s take a look at the outlook for this ASX hydrogen share.

What’s ahead?

ReNu Energy shares have been lifting in the past couple of weeks amid hydrogen project news.

On 9 November, ReNu advised that superannuation fund HESTA had agreed to a non-binding term sheet to invest up to $100 million in the company’s green hydrogen projects.

Commenting on the deal, ReNu CEO Greg Watson said:

Our task now is to advance to definitive agreements as soon as possible and progress commercial discussions with our project partners for green hydrogen offtake.

Meanwhile, on 17 November, ReNu advised it had signed a memorandum of understanding (MOU) with Australian Pacific Airports to develop a green hydrogen project at Launceston Airport.

Peak Asset Management executive director Niv Dagan recommends the ReNu Energy share price as a buy. Commenting on The Bull, Dagan said:

The company invests in renewable and clean energy technologies. Also, it identifies and develops hydrogen projects. RNE acquired Countrywide Hydrogen in February 2022.

The company continues to progress its hydrogen projects.

Trading halt

ReNu Energy shares are in a trading halt today at the company’s request. The company’s share price is on ice ahead of a capital raising. In a statement, ReNu Energy said:

The company requests that the trading halt remain in place until the commencement of
trading on Wednesday, 23 November 2022 unless before that time it makes an
announcement in relation to the Capital Raising to the market or requests that the trading
halt be lifted.

Share price snapshot

The ReNu Energy share price has descended 57% in the past year, while it has lost 26% year to date.

For perspective, the ASX 200 has fallen more than 3% in the last year.

This ASX hydrogen share has a market capitalisation of nearly $22 million based on the current share price.

The post Up 50% in 2 weeks, this ASX hydrogen share is still a buy: expert appeared first on The Motley Fool Australia.

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• Guess which ASX energy share just exploded 150% on a green hydrogen deal with Hesta?

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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The Magellan Financial Group Ltd (ASX: MFG) share price has been on a rollercoaster in recent weeks after the market reacted to news the company’s former star-stock picker offloaded a huge parcel of its securities.

An entity associated with Magellan co-founder Hamish Douglass – who stepped down as the company’s chair earlier this year before returning in a consultancy role – sold 13 million of the company’s shares earlier this month.

The Magellan share price tumbled 5% in the days following the sale. Since then, it has posted a 9% gain. Right now, stock in the fund manager is swapping hands for $9.91 apiece.

So, should investors follow the lead of the notable insider and sell down their holdings in the S&P/ASX 200 Index (ASX: XJO) financials icon? Here’s what one fundie reckons.

Why this fundie tips Magellan shares as a sell

News that Douglass sold a $118 million parcel of Magellan shares might not have left a long-term sour taste in the market’s mouth, but it did raise the eyebrows of one fundie.

Peak Asset Management founder and executive director Niv Dagan believes it’s time to sell out of the company, as per The Bull.

One reason behind his bearishness is Douglass’ recent sale, which the insider told the market was for “family diversification purposes”.

Another was the fund manager’s notable outflows.

Magellan experienced $2.4 billion of net outflows in October. Of that, $400 million was retail, and $2 billion was institutional. It followed the company’s $3.6 billion September outflow and its $1.3 billion August outflow.

Though, October wasn’t all bad. A weaker Aussie dollar and market strength saw the company boast $51 billion of funds under management at the end of October. That’s up from $50.9 billion on 30 September.

Finally, Dagan cited the company’s embattled share price as another reason he thinks the stock is a sell.

The Magellan share price has lost nearly half its value in 2022. It started the year trading at $19.40.

The post Hamish Douglass has been selling down his Magellan shares. Should you? appeared first on The Motley Fool Australia.

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• The Magellan share price has caved 50% so far this year. Are directors seriously asking for a pay rise?
• Here are the top 10 ASX 200 shares today
• 5 of the craziest things making news on the ASX this week
• Amidst the ongoing tech stock wreck, value shares are everywhere. There’s just one catch…
• Why Magellan, News Corp, REA, and Whitehaven Coal shares are dropping today

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

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

From time to time, Wall Street provides a not-so-subtle reminder to the investing community that stocks can move lower.

Since achieving their all-time closing highs between mid-November 2021 and the first week of January 2022, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), widely followed S&P 500 (SNPINDEX: ^GSPC), and growth stock-driven Nasdaq Composite (NASDAQINDEX: ^IXIC) have respectively plummeted by as much as 22%, 28%, and 38%. This means all three major U.S. indexes have had at least a brief taste of a bear market in 2022.     

Regardless of how long you’ve been investing, bear markets can make you question your resolve to stay the course. In particular, the 2022 bear market has a lot of folks wondering where the bottom might be. Although no indicator, metric, or statistic has accurately predicted the start or finish of every bear market, one telltale bear market indicator does have an exceptionally strong track record of forewarning investors.

This bear market metric indicates more trouble is ahead for Wall Street

Looking back as far as 1870, the S&P 500 Shiller price-to-earnings (P/E) ratio has foretold the coming of five bear markets. The Shiller P/E, also known as the cyclically adjusted price-to-earnings ratio (CAPE ratio), takes into account inflation-adjusted earnings from the previous 10 years.        

While on the surface the Shiller P/E is just another valuation tool, it’s accurately predicted a coming bear market anytime it’s crossed above 30 and sustained that level. This includes peaking above 30 in 1929 ahead of the Great Depression, topping out at 44 during the dot-com bubble, surpassing 30 in the third quarter of 2018 and just prior to the coronavirus crash, and once more (briefly) surpassing 40 during the first week of 2022. The short version is that anytime the S&P Shiller P/E ratio tops 30 during a bull market, a decline in the S&P 500 of at least 20% eventually follows (key word, “eventually”).

S&P 500 Shiller CAPE Ratio data by YCharts.

But the Shiller P/E ratio can be just as useful forecasting where a bear market will bottom. With the exception of the financial crisis (2007-2009), a number of double-digit percentage retracements in the S&P 500 over the past quarter of a century have found their bottom when the S&P 500 Shiller P/E hit 22 (give or take a point or two in each direction). This isn’t all that surprising given that professional and everyday investors often become more critical of stock valuations during bear market declines.

I’m sorry to say, but this telltale bear market indicator is, once more, sounding a warning that the broader market has yet to find its bottom — at least if history proves accurate. The latest bounce following a lower-than-anticipated U.S. inflation rate briefly pushed the S&P Shiller back above 29.  Though anything is possible, no bear market has ever bottomed with the Shiller P/E as high as it is now.

Considering that a number of high-profile companies have begun to temper their outlooks, all signs would appear to point to a bumpy road for equities to end 2022 and/or begin 2023.

This “warning” is your opportunity to pounce

Although the S&P Shiller P/E ratio has a time-tested track record of being right, it’s not perfect. But there is something that does have a perfect track record: The S&P 500 itself.

As I’ve previously pointed out, time is the greatest ally investors have. Trying to predict where the market will be a year from now is nothing more than a crapshoot. However, the longer you hold, the greater your chance of being correct and building wealth.

According to data compiled by market analytics company Crestmont Research, there’s hasn’t been a 20-year rolling period since 1900 where the S&P 500 has failed to deliver a positive total return, including dividends paid. In other words, if you hypothetically bought and held an S&P 500 tracking index for 20 years, you made money 103 out of 103 times (with every year from 1919 through 2021 representing the end years for these rolling 20-year periods). Most of the time, investors made a boatload of money, with more than 40% of these 103 end years resulting in an average annual total return of at least 10.8%. 

If you’re worried about “getting in too early,” consider this: There have been 39 separate double-digit percentage declines in the S&P 500 since the beginning of 1950. With the exception of the current bear market, all 38 previous crashes, corrections, and bear markets were eventually cleared away by a bull market.  Once again, it doesn’t really matter when you buy, so long as you give your investment(s) ample time to play out and prove your thesis correct.

I should also state that this isn’t unique to the S&P 500. Every crash, correction, and bear market in the Dow Jones Industrial Average and Nasdaq Composite were also eventually whisked away by bull markets.

In short, if the Shiller P/E ratio is sounding a warning, it’s often a great time for opportunistic long-term investors to pounce.  

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

The post This Telltale bear market indicator is sounding a warning, once again appeared first on The Motley Fool Australia.

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More reading

• Hamish Douglass has been selling down his Magellan shares. Should you?
• Is this ASX 200 share the gift that keeps on giving?
• To $300 and beyond! Why this top broker says CSL shares are a buy right now
• Why Telstra shares have 16% upside right now: fundie
• Why is the Lake Resources share price smashing the ASX 200 on Monday?

Sean Williams 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.

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

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S&P/ASX 200 Index (ASX: XJO) share Lovisa Holdings Ltd (ASX: LOV) looks to be the gift that keeps on giving this calendar year.

Having reached all-time highs last Thursday, shares in the ASX 200 fashion jewellery retailer are up 1.9% during the lunch hour today, though still a touch below the record highs.

In a year that’s seen the benchmark index slide 6%, the 22% gains posted by Lovisa Holdings certainly shine brightly. And the ASX 200 share also pays a 3.1% trailing dividend yield, 30% franked.

What’s driving investor interest in the ASX 200 retail share?

Investors look to be driving up the Lovisa share price on the back of strong sales growth.

As The Motley Fool reported on Friday, the first 19 weeks of the 2023 financial year have seen the ASX 200 share continue to grow global comparable store sales. Sales were up 16.1% compared to the 2022 financial year over the same period.

The sales metrics were based on stores that were open and trading and excluded stores that were temporarily shuttered due to pandemic lockdowns in either financial year.

Total sales for this period increased by 60% on FY22.

The ASX 200 retail share also looks to be getting a lift from its continuing global expansion.

Year to date, Lovisa has closed 14 stores and opened 61 new stores, for a net increase of 47 shops. The company’s footprint now reaches 26 countries and a total of 676 stores.

“Compared to this time last year, we are currently trading over 100 more stores in five additional markets, with our first stores in Italy, Mexico and Hungary also due to open in coming weeks,” Lovisa reported.

How has the Lovisa share price performed longer-term?

We always like to take a step back and see how longer-term investors may have fared with ASX 200 shares.

And in Lovisa Holdings’ case, the answer is “quite well”.

Over the past five years, shares in the jewellery retailer have gained 320%. That compares to a 19% gain posted by the ASX 200 over the same time frame.

The post Is this ASX 200 share the gift that keeps on giving? appeared first on The Motley Fool Australia.

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More reading

• Lovisa share price charges to record high on 60% sales boost
• Here are the top 10 ASX 200 shares today
• Why did these ASX 200 shares just crack new, multi-year highs?
• How I’d build a portfolio by investing in top ASX shares now

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 positions in and has recommended Lovisa Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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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CSL Limited (ASX: CSL) shares having a positive start to the week.

In afternoon trade, the biotherapeutics company’s shares are up 1% to $297.29.

This leaves CSL’s shares on the cusp of breaking through the $300 mark once again.

Where are CSL’s shares heading?

The good news for investors is that one leading broker believes that CSL’s shares can rise beyond the $300 mark and keep on climbing.

According to a note out of Citi, its analysts have retained their buy rating and $340.00 price target on the company’s shares.

Based on where its shares trade today, this implies potential upside of over 14% for investors over the next 12 months.

What did the broker say?

Citi notes that the company recently held its research and development (R&D) day.

Its analysts highlight that CSL plans to continue spending over US$1 billion on its R&D activities each year for the foreseeable future. And with exciting potential therapies such as CSL 112 in its pipeline, it’s hard to argue against this level of investment.

Citi commented:

CSL held its annual event updating the market on its R&D programs. The R&D budget is significant at US$1.16bn in FY22 or ~11% of revenue. 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.

The post To $300 and beyond! Why this top broker says CSL shares are a buy right now appeared first on The Motley Fool Australia.

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More reading

• Are these the very best ASX 200 shares to buy for 2023?
• How much dividend income will $20,000 worth of CSL shares buy right now?
• Considering CSL shares? Broker says this other ASX 200 healthcare share has 30% upside
• Experts name 2 ASX 50 shares to buy
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Motley Fool contributor James Mickleboro 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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The Telstra Group Ltd (ASX: TLS) share price is slightly in the green today but could it have more upside in the future?

Telstra shares are climbing 0.25% today and are currently trading at $3.95. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.025% at the time of writing.

Let’s take a look at the outlook for the Telstra share price.

What’s ahead?

The team at Morgans believe Telstra is in “good shape” and is tipping its share price to go higher.

Morgans has placed an add rating on the company’s share price with a $4.60 price target. This implies an upside of 16% based on the current share price.

Analysts are optimistic on the Telstra share price in light of its restructure, which could unlock value in its assets. The broker said:

After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote[d] on Telstra’s legal restructure, which opens the door for value to be released.

TLS currently trades on ~7x EV/EBITDA. However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders. 

Telstra’s corporate restructure will involve a legal reorganisation where multiple subsidiaries will sit under the new Telstra Corp. These will include Telstra International, Amplitel, InfraCo and Serve Co.

The legal restructure is due to be complete on 1 January 2023.

Telstra transitioned to new CEO Vicki Brady at the start of September.

Telstra share price snapshot

The Telstra share price has descended 3% in the past year, while it has fallen 6% in the year to date.

For perspective, the ASX 200 has fallen nearly 3% in the last year.

Telstra has a market capitalisation of more than $45 billion based on the current share price.

The post Why Telstra shares have 16% upside right now: fundie appeared first on The Motley Fool Australia.

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More reading

• Ballin’ on a budget: The best ASX shares to buy for under $5
• 3 key things I look for when buying ASX dividend shares
• Experts name 2 ASX 50 shares to buy
• Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?
• How to have your ASX 200 dividend cake and eat it too

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 positions in and has recommended Telstra Corporation 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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