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  • The Webjet share price is trading at 8-month lows. Is now the time to buy?

    A woman sits crossed legged on seats at an airport holding her ticket and smiling.A woman sits crossed legged on seats at an airport holding her ticket and smiling.

    The Webjet Limited (ASX: WEB) share price is pushing lower today and is now trading 4.1% in the red at $4.76.

    Webjet booked a trip down south earlier in the year and, after some sideways action, has begun to come in with a hard landing to today’s market price.

    The evolution of the Webjet share price for the past 12 months is seen in the chart below.

    TradingView Chart

    Is Webjet a buy?

    The travel and tourism industry has been one of the worst hit by COVID-19 lockdowns. However, it’s made somewhat of a comeback in 2022.

    According to The International Air Transport Association (IATA), travellers are expected to embark on a mammoth four billion trips in 2024 – more than 103% of the 2019 [pre-COVID] total.

    This is a stark difference from last year’s numbers. In 2021, overall traveller numbers were just 47% of the 2019 highs.

    Buying Webjet shares lends investors unique exposure to the travel and tourism segments, albeit with a completely different business model.

    Being in the services industry, and using software to generate revenue, means capital expenditure (CapEx) is light for Webjet.

    CapEx is the amount of funds required to grow and maintain its physical/fixed assets, like land and buildings. In its last half-year results, Webjet reported capital expenditure of $11.8 million, with $15 million in FY19.

    Airlines, on the other hand – another route to gain travel exposure – have enormous capital expenditure just to stay afloat.

    Over the same half-year period, CapEx for Qantas Airways Limited (ASX: QAN) was $581 million, down from a high of $1.2 billion in FY19 (expect numbers to return to 2019 levels).

    Hence, even though total debt levels have crept up for Webjet since FY19, only 21% of assets are funded by debt, and the percentage of debt to equity on the balance sheet is evenly split.

    Investors also received 18 cents per share in trailing dividends this year with a trailing dividend yield of 1.4%.

    What do the brokers say?

    Brokers certainly believe Webjet is a buy too. According to Refinitiv Eikon data, 10 out of 16 analysts urge clients to buy Webjet right now, with four saying it’s a hold.

    The consensus price target from this list is $5.97, suggesting around 25% return potential from the current Webjet share price.

    With low fixed expenses and the potential to benefit from a rebound in recovery, the bullish case is clear for brokers to recommend Webjet as a buy.

    The risk that numbers won’t return to previous highs remains a very real one, however. Nevertheless, the Webjet share price is down 24% over the past 12 months.

    The post The Webjet share price is trading at 8-month lows. Is now the time to buy? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Zach Bristow 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 Webjet 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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  • In a sea of red, why are ASX 200 gold shares shining brightly on Friday?

    a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.

    ASX 200 gold shares are having a stellar end to the week as the gold price recovers from two-year lows earlier in the week.

    Among the gold explorers rising are Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN).

    So why are ASX 200 gold shares having such a good day?

    Gold prices recover

    Newcrest shares are rising nearly 2.97%, Northern Star Resources shares are up 3.41% and Evolution Mining shares are 2.52% in the green. Other gold miners rising include St Barbara Ltd (ASX: SBM), up 5.4%, as well as Silver Lake Resources Limited (ASX: SLR) and Regis Resources Limited (ASX: RRL), both rising 5% and 4.8% respectively.

    The spot gold price is up 0.15% to US$1671 an ounce at the time of writing, CNBC data shows. However, the gold price has recovered 2.5% from the more than two-year low of S$1629.50 on Monday afternoon.

    The gold price fluctuated overnight as investors weighed up a slight fall in the US dollar and potential US rate hikes. Commenting on the gold price, OANDA senior analyst Edward Moya, quoted by the CNBC said:

    A slightly weaker dollar today might give some relief… but the key takeaway should still be what’s happening with yields, the short end of the curve is still rising strongly.

    You’re probably looking at a gold market that’s still going to react to everything about the dollar, everything about Fed expectations.

    Meanwhile, St Barbara yesterday confirmed it is in discussions with operators in the St Leonora region regarding “a potential business combination or combinations” to unlock “operating and development synergies in the region”.

    The post In a sea of red, why are ASX 200 gold shares shining brightly on Friday? appeared first on The Motley Fool Australia.

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    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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  • It’s not all bad news for ASX All Ords shares on Friday. Here are some big winners

    A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket

    A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket

    The All Ordinaries (ASX: XAO) is a sea of red on Friday afternoon. At the time of writing, the index is down a disappointing 1.25% to 6,676.5 points.

    Fortunately, it’s not all bad news for All Ords shares today. Listed below are some big winners:

    Capricorn Metals Ltd (ASX: CMM)

    The Capricorn Metals share price is up 6.5% to $2.94 on Friday afternoon. This has been driven partly by a bullish broker note out of Macquarie this morning. According to the note, its analysts have upgraded the gold miner’s shares to an outperform rating with a $3.30 price target. Although Capricorn Metals’ full year results fell short of Macquarie’s expectations, it feels its shares are trading at an attractive level and has upgraded its rating accordingly.

    Qualitas Ltd (ASX: QAL)

    The Qualitas share price is up 8% to $2.33. This has been driven by news that the alternative real estate investment manager has secured another big capital commitment from a global institutional investor. According to the release, the unnamed investor has committed $440 million to the Qualitas Construction Debt Fund II. This means that within the first three months of FY 2023, the company has raised a total of $1.19 billion in new capital. This followed a major investment from the Abu Dhabi Investment Authority investment last month.

    Westgold Resources Ltd (ASX: WGX)

    The Westgold Resources share price is up almost 6% to 83.5 cents. Investors have been buying Westgold Resources and other All Ords gold miners on Friday despite the gold price only rising modestly during Asian trade. It could be that investors are looking for safe haven options after the market volatility returned. In afternoon trade, the S&P/ASX All Ordinaries Gold index is up a pleasing 2.8%.

    The post It’s not all bad news for ASX All Ords shares on Friday. Here are some big winners 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 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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  • Why is the BHP share price having such a stellar end to the week?

    A happy woman in an office puts her hands in the air as if to celebrate while looking at computer.A happy woman in an office puts her hands in the air as if to celebrate while looking at computer.

    The BHP Group Ltd (ASX: BHP) share price is lifting on Friday to finish the week on a high.

    BHP shares are rising 0.92% and are currently trading at $38.52. For perspective, the
    S&P/ASX 200 Index (ASX: XJO) is 1.25% in the red.

    So why is the BHP share price rising today?

    BHP shares lift

    BHP is a major iron ore producer and derived more than half of its earnings in FY22 from the commodity. The mining giant also produces copper, nickel, coal, potash and coal, among other commodities.

    Higher iron ore prices could be helping the BHP share price today. Iron ore prices have lifted 1.51% to US$101 per tonne, Trading Economics data shows.

    ANZ senior economist Adelaide Timbrell said iron ore prices lifted on “expectations of further support for the construction sector in China”. In a research note, she added:

    A meeting chaired by Premier Li Keqiang reaffirmed the government’s plan to front-load next year’s special government bond quota. The PBoC will also allow some cities to cut mortgage rates for first home buyers. Investors hope this will result in a boost to construction-related steel demand.

    The copper price also rose 1.6% to US$7542 per tonne overnight, while nickel lifted 2.5% to US$22,348 per tonne.

    Analysts at Macquarie have recently placed an outperform rating on the BHP share price and lifted the price target on the company’s shares to $44. This is 14% more than the current share price. Macquarie has increased earnings estimates for the company up to FY 2026 by 5% per year.

    BHP reported a record underlying earnings before interest, tax, depreciation and, amortisation (EBITDA) of US$40.6 billion in FY22, 16% more than the previous financial year. Of these earnings, US$21.7 billion came from iron ore, while US$8.6 billion was derived from copper and US$7.7 billion was delivered from metallurgical coal.

    Share price snapshot

    BHP shares have soared nearly 16% in the past year. In the year to date, they have risen climbed nearly 16%, but have fallen 8% in the past month.

    For perspective, the ASX 200 has lost nearly 11% in the past year.

    BHP has a market capitalisation of more than $196 billion based on the current share price.

    The post Why is the BHP share price having such a stellar end to the week? appeared first on The Motley Fool Australia.

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    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 recommended Macquarie 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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  • Brokers name 3 ASX shares to buy today

    A white and black clock with the words Time to Buy in blue lettering representing the views of two experts who say it's time to buy these ASX shares

    A white and black clock with the words Time to Buy in blue lettering representing the views of two experts who say it's time to buy these ASX shares

    It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

    Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

    AGL Energy Limited (ASX: AGL)

    According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this energy company’s shares to $8.81. This follows news that the company will exit coal 10 years ahead of previous plans. Morgans is positive on the move, particularly given its belief that inflexible brown coal plants will struggle as more variable renewables enter the grid. Outside this, the broker has lifted its earnings estimates for FY 2024 onwards due to the continued strength of futures prices. The AGL share price is trading at $6.81 on Friday.

    APM Human Services International Ltd (ASX: APM)

    A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $4.20 price target on this health and human services provider’s shares. Goldman notes that APM has signed an agreement to acquire Equus Workforce Solutions for US$153 million. The broker highlights that the deal will increase its North American footprint. In addition, Goldman reiterates its belief that the market is under appreciating APM’s ability to generate durable earnings growth. The APM share price is fetching $3.33 this afternoon.

    Telstra Corporation Ltd (ASX: TLS)

    Analysts at Morgan Stanley have retained their overweight rating and $4.62 price target on this telco giant’s shares. According to the note, the broker believes that Telstra could be a big winner from the Optus hack. It suspects that mobile customers could switch to Telstra in the coming years because of the scandal. The Telstra share price is trading at $3.86 on Friday afternoon.

    The post Brokers name 3 ASX shares to buy today 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 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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  • ASX 200 dividend shares suffer September sell-off

    A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.

    A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.

    There were plenty of S&P/ASX 200 Index (ASX: XJO) dividend shares that had a painful month in September.

    The ASX 200 as a whole dropped around 7%.

    Share markets have been suffering in 2022 as investors get to grips with higher inflation and how central banks are going to handle the situation.

    The latest move by the US Federal Reserve was to increase the interest rate by another 0.75%. Considering the US dollar has a global influence, the rapid changes in the US interest rate can have major ramifications.

    In Australia, the last move by the Reserve Bank of Australia (RBA) was an increase of 50 basis points. The next move (which is announced next Tuesday) could be another 50 basis point rise.

    Higher interest rates are meant to lower asset valuations, in theory. That’s because they act like gravity, pulling down on the asset price.

    Some ASX 200 dividend share investors may have been hoping that central banks would start to slow down the increases. But that hasn’t happened.

    US Fed commits to bringing down inflation

    As reported by my colleague Bernd Struben, US Fed chair Jerome Powell said:

    We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t. Higher interest rates, slower growth and a softening labour market are all painful for the public that we serve. But they’re not as painful as failing to restore price stability and having to come back and do it down the road again.

    That suggests that US interest rates will keep increasing until inflation has been brought under control.

    How have ASX 200 dividend shares reacted in September?

    ASX 200 bank shares certainly saw their share of red during the month. The Commonwealth Bank of Australia (ASX: CBA) share price fell around 6%, the Westpac Banking Corp (ASX: WBC) share price dropped 3.5% and the National Australia Bank Ltd (ASX: NAB) share price declined 5%. Interestingly, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price managed a rise of around 1%.

    Some of the big-yielding resource shares also saw a drop. The BHP Group Ltd (ASX: BHP) share price fell around 4% and the Fortescue Metals Group Limited (ASX: FMG) share price dropped 8%. However, the Rio Tinto Limited (ASX: RIO) share price only dropped 0.2%.

    Telecommunications giant Telstra Corporation Ltd (ASX: TLS) saw its share price fall by around 2.5%.

    Looking at some other names, the Wesfarmers Ltd (ASX: WES) share price dropped 8%, the Woodside Energy Group Ltd (ASX: WDS) share price fell 7%, the Macquarie Group Ltd (ASX: MQG) share price fell 13% and the Transurban Group (ASX: TCL) share price fell by 8%.

    The post ASX 200 dividend shares suffer September sell-off appeared first on The Motley Fool Australia.

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    Motley Fool contributor Tristan Harrison 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 positions in and has recommended Telstra Corporation Limited and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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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  • Stock market bottom: are we there yet?

    A young couple look upset as they use their phones.A young couple look upset as they use their phones.

    Australian markets continue their descent in today’s session, with all but the materials sector in the red this afternoon.

    The benchmark S&P/ASX 200 Index (ASX: XJO) is down 72 basis points on the day at 6,507, whereas the high-flying S&P/ASX 200 Energy Index (ASX: XEJ) is flat.

    Meanwhile, Australian inflation data this week showed the consumer price index increased 6.8% from July–August, as Brent Crude oil declines 8% over the month to date.

    Where are we now?

    Let’s step back a bit. As seen in the chart below, all of the ASX sectors, except utilities, have shown an overall uptrend since March 2020 – the onset of COVID-19.

    It’s a busy chart, granted, but the benchmark index is seen with the black line. As of today’s trade, we are now trading below pre-pandemic highs.

    TradingView Chart

    Essentially all of the stock market gains brought on by the speculative mania over the past two-and-half years have been erased.

    Fast forward to today and things are very different.

    The market peaked in August 2021, and has been on a descent into chaos ever since. As seen in the chart below, the ASX 200 index has a mountain to climb to its former highs.

    This year to date, energy remains the only sector in the green, with technology – the former darling child of the ASX – booking substantial losses from its former highs.

    “We are in deep trouble”

    It’s not often you hear a legendary investor speak with such a negative tone about the markets. However, that’s the posture Stanley Druckenmiller held recently at the CNBC Delivering Alpha Summit this week.

    The fund manager, who has an impeccable track record, said his firm sees a sharp downturn, leading to a hard economic landing in 2023.

    “Our central case is a hard landing by the end of [FY23]…I will be stunned if we don’t have a recession by FY23,” he said, cited by CNBC.

    Speculative mania has driven much of the wild upswings in global share markets over the past two years, creating a bubble in financial assets, Druckenmiller says.

    But times are changing.

    “All those factors that cause a bull market, they’re not only stopping, they’re reversing – every one of them,” he added.

    “We are in deep trouble.”

    David Rubenstein, co-founder of Carlyle Group, was a little more upbeat at the summit. He said that investors “shouldn’t be afraid” of buying into the stock market weakness.

    However, Rubenstein also warned that investors should avoid trying to find a market bottom.

    “It’s a fool’s errand to find the bottom in the market or the top in the market…trying to wait to the absolute bottom is probably a mistake, in my view.”

    In reality, there’s too many moving parts to even try and predict a market bottom right now. In the meantime, the downward spiral continues for the benchmark index, as seen below.

    TradingView Chart

    The post Stock market bottom: are we there yet? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Zach Bristow 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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  • NAB share price best of the ASX 200 banks on Friday

    Happy man at an ATM.Happy man at an ATM.

    The National Australia Bank Ltd (ASX: NAB) share price is outperforming all its S&P/ASX 200 Index (ASX: XJO) peers on Friday despite trading in the red.

    Stock in the big four bank has slipped 0.72% at the time of writing to trade at $29.06.

    That leaves it in a better position than both the ASX 200 and the S&P/ASX 200 Financials Index (ASX: XFJ). They’ve fallen 0.79% and 1.48% respectively at the time of writing.

    Let’s take a closer look at how the NAB share price is performing compared to other ASX 200 bank stocks today.

    NAB share price leads the pack on Friday

    The NAB share price is down just 0.7% on Friday afternoon, making it the best performing ASX 200 bank.

    Coming in second best is the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price, with a 1.16% fall that sees it trading at $23.10.

    Meanwhile, stock in Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have dumped 1.74% and 1.23% respectively.

    The CBA share price is $91.50 right now while that of Westpac is $20.86.

    Looking to the ASX 200’s smaller banks, the Bank of Queensland Limited (ASX: BOQ) share price is down 1.13% at $6.555 right now. Finally, that of Bendigo and Adelaide Bank Ltd (ASX: BEN) has slipped 1.82% to $7.815.

    As can be seen, the CBA share price is coming in worst dressed on Friday. That’s despite the bank announcing the Australian Prudential Regulation Authority (APRA) has removed a $500 million capital add-on.

    The sector might also be suffering amid expectations the Reserve Bank of Australia could hike interest rates by 0.5% next week.

    Westpac chief economist Bill Evans confirmed the forecasted hike, which would bring the benchmark cash rate to 2.85%, earlier this week.

    Rising rates can be both a burden and a relief for banks, allowing them to increase net interest margins (NIM) while also increasing risks facing their loan books.

    The NAB share price has outperformed the market over the last month, falling 5% to the ASX 200’s 7% tumble.

    The post NAB share price best of the ASX 200 banks on Friday appeared first on The Motley Fool Australia.

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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 Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Here are the big ASX lithium share winners and losers on Friday

    Winning woman smiles and holds big cup while losing woman looks unhappy with small cupWinning woman smiles and holds big cup while losing woman looks unhappy with small cup

    ASX lithium shares are putting in a mixed performance today.

    While a few lithium stocks are smashing the 1.2% loss posted by the All Ordinaries Index (ASX: XAO) on Friday afternoon, others are significantly trailing the benchmark index.

    This comes as lithium prices remain near record highs amid strong global demand for electric vehicle and grid storage batteries.

    We’ll kick off with today’s two worst-performing ASX lithium shares.

    ASX lithium shares in the red

    The leading loss maker today is Nova Minerals Ltd (ASX: NVA). The small-cap explorer is focused on both gold and lithium, with a 37% stake in the Snow Lake Lithium Project in Manitoba, Canada. The Nova Minerals share price is down 8.7% today and down 47% in 2022.

    Also losing ground today is Global Lithium Resources Ltd (ASX: GL1). The emerging lithium exploration company is primarily focused on the Marble Bar Lithium Project, located in Western Australia. The Global Lithium share price is down 7% today but remains up 87% year-to-date.

    With the two leading loss makers covered, here are the top two ASX lithium shares today.

    Charging higher

    The broader selling pressure hitting the market today hasn’t impacted investor appetite for today’s second-best performer, Prospect Resources Ltd (ASX: PSC). The battery minerals explorer share price is up 4.8% at the time of writing.

    And the best performing ASX lithium share today is Aurora Energy Metals Ltd (ASX: 1AE). The United States-focused uranium and lithium explorer commenced trading on the ASX on 18 May this year with a focus on its Aurora Energy Metals Project in Oregon. The Aurora Energy share price is up 9.3% today.

    As for the top name ASX lithium shares?

    Rounding off the list with some of the biggest lithium stocks, the Core Lithium Ltd (ASX: CXO) share price is frozen today after the company requested a trading halt pending an announcement regarding the launch of its $100 million capital raise.

    Meanwhile, the Pilbara Minerals Ltd (ASX: PLS) share price is down 2.4% and Allkem Ltd (ASX: AKE) shares are down 2.8%.

    The post Here are the big ASX lithium share winners and losers on Friday appeared first on The Motley Fool Australia.

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

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  • Could Westpac shares be in for another massive buyback?

    A business woman flexes her muscles overlooking a city scape below.A business woman flexes her muscles overlooking a city scape below.

    The past two years have produced tremendous growth in company earnings, leaving many names with surplus capital on the balance sheet.

    As a result, there’s been a significant number of share buybacks announced by ASX-listed companies in 2022.

    Whereas dividends typically steal the show, buybacks are making the rounds again as an alternative means of returning capital to shareholders.

    Banks to increase pace of buybacks

    Analysts at investment bank Citi reckon that ASX-listed banks are set to increase the pace of buybacks over the coming 12–24 months.

    The broker said that banks would take some time to respond to the newly-implemented Basel III reforms that govern capital management in the banking sector.

    As a result, banks are on the “cusp of the cycle” where the regulatory body APRA “thought we were two years ago”.

    “[C]onsensus is forecasting large bad debts, risk weight-intensive business credit is on a tear, and rates continue to drive [risk],” the broker said, adding:

    We think that some of this capital ‘disappearance’ reverts, and there is a possibility of further buybacks in 2024 once some of the noise diminishes.

    Where does Westpac sit?

    With that, Citi said that Westpac was positioned best amongst the ASX banks to complete a buyback, and noted CBA’s soon-to-be-completed $1.5 billion share repurchase program.

    Meanwhile, Refinitiv Eikon data shows five out of 14 analysts recommend Westpac as a buy right now, with seven rating it a hold and another two analysts urging clients to sell.

    The consensus price target is $24.35 from this list, indicating a deal of upside to be recognised if the number proves correct.

    In its last financial report, Westpac had a dividend coverage ratio of 153%, whereas debt made up 70% of the bank’s total capital base. It has more than sufficient cash flow from operations and cash on the balance sheet to meet the demands of a share buyback.

    Westpac also trades on a price-to-earnings (P/E) ratio of 15.3x and a trailing dividend yield of 5.75%. This is on earnings per share (EPS) of $1.37 and a trailing earnings yield of 6.51%.

    The post Could Westpac shares be in for another massive buyback? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Zach Bristow 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 Westpac Banking Corporation. 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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