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  • Are these beaten down ASX 200 shares going cheap?

    Four investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces.

    Four investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces.

    With the market going through a very turbulent time, a number of ASX 200 shares have been hit hard.

    Two that have been beaten down in 2022 and could be great value now are listed below. Here’s what analysts are saying about them:

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    This pizza chain operator’s shares have been sold off this year. This has been driven by weakness in Japan and concerns over inflationary pressures.

    Nevertheless, the team at Morgans remains positive on the company and appears to see the recent share price weakness as a buying opportunity.

    Morgans likes the company due to its very positive long term growth outlook.  It said:

    DMP is the largest Domino’s franchisee outside the US and one of the largest quick-service restaurant companies in the world. It is an affordable option that has performed well historically even in times of inflation or slower economic growth.

    The engine of DMP’s growth is its ability to roll out new stores all over the world. It added 438 stores to its global network in the year to June 2022, a pace of expansion that we forecast to accelerate to nearly 600 in FY23. This will take the total to almost 4,000 stores, up fourfold over a ten-year period. Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates. This means DMP expects to more than double in size again by 2033, not including any future acquisitions.

    Morgans has an add rating and $90.00 price target on the company’s shares. This compares favourably to the latest Domino’s share price of $54.15.

    Goodman Group (ASX: GMG)

    Another ASX 200 share that has fallen hard this year is Goodman. It is an integrated commercial property company with a focus on industrial assets.

    Goldman Sachs believes the weakness in the Goodman share price is a bit of a gift to investors. Particularly given the quality of the company and its positive growth outlook.

    Its analysts thought the company’s shares were great value last month when they were down 22% year to date. Goodman’s shares have fallen even further since then, which is likely to have the broker licking its lips now. It previously commented:

    Year to date, GMG shares are down ~22% [now 39%!], underperforming the ASX200 by ~17% and the ASX200 REIT index by ~5%. We estimate that GMG currently trades on a P/E to growth ratio of ~2.2x (vs. 5-yr historical average of ~2.7x). GMG offers an estimated FY22-24e earnings CAGR of ~14%, screening relatively attractively on a growth adjusted basis relative to our REIT coverage average of ~4%.

    Goldman has a buy rating and $25.40 price target on the company’s shares. This compares nicely to the latest Goodman share price of $16.23.

    The post Are these beaten down ASX 200 shares going cheap? 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 recommended Dominos Pizza Enterprises 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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  • Experts say these small cap ASX shares are buys

    a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.

    a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.

    If you’re wanting to invest in small cap shares, then you may want to check out the two listed below.

    Here’s why experts think these ASX shares could be top options for investors right now:

    Nitro Software Ltd (ASX: NTO)

    The first small cap that experts rate highly is Nitro Software.

    It is a document productivity software company that is aiming to drive digital transformation in organisations around the world. Nitro is doing this with its Nitro Productivity Suite, which provides businesses of all sizes with integrated PDF productivity and electronic signature tools.

    And while the company has been growing at a rapid rate in recent years, it is still only scratching the surface of its enormous market opportunity. Management commented:

    With a strong balance sheet and zero debt, we are well placed to cement and expand our position in the fast-growing US$28 billion eSigning and PDF productivity market as customers increasingly demand the suite of high-security high-trust products we offer.

    Goldman Sachs is very positive on the company and currently has a buy rating and $2.05 price target on its shares.

    PlaySide Studios Limited (ASX: PLY)

    Another small cap ASX share that experts are tipping as a buy is PlaySide Studios.

    It is one of the largest video game developers in the ANZ region. It provides titles in a range of categories, including self-published games based on original intellectual property and game development services in collaboration with studios such as Take-Two Interactive, Activision Blizzard, Meta, Disney, Pixar, Warner Bros, and Nickelodeon.

    The company also has a growing interest in NFTs and generated $9 million in sales from them during the first half.

    Ord Minnett is a fan of the company. It currently has a speculative buy rating and 85 cents price target on its shares.

    The post Experts say these small cap ASX shares are buys 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 recommended Nitro Software 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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  • Expert reveals ‘one of the most important things’ to do in the share market right now

    A businessman keeps calm in the face of inflationA businessman keeps calm in the face of inflation

    The S&P/ASX 200 Index (ASX: XJO) finished up 1.4% on Thursday at 6,555 points.

    In the year to date, the benchmark index has dropped almost 14% as the market grapples with the challenges of rising inflation and interest rates. This means only one thing: Volatility.

    As reported by CNBC, staying invested during volatility is difficult but crucial for share investors, according to Mary Callahan Erdoes, the CEO of JPMorgan Asset & Wealth Management.

    At CNBC’s Delivering Alpha investor summit in New York, Erdoes said:

    While the world is focused on all the black swan events, there will be white swans that emerge.

    Keeping your eye out for those white swans and … staying invested in these markets is one of the most important things and one of the most difficult things.

    Stand by for some industry lingo

    Before we go any further with Erdoes’ comments, here’s a quick reminder on the following fin-speak.

    • The term ‘black swan’ describes a market-moving event that no one saw coming. Case in point: COVID-19
    • The term ‘white swan’ is a predictable crisis that can be addressed
    • The term ‘alpha’ means returns that beat the general market (we’ll talk about alpha in a sec)

    Got that? Okay, here’s some more from Erdoes.

    There’s ‘alpha everywhere’

    Erdoes says investors should search the market for opportunities. She said:

    There is alpha everywhere. It’s in stocks. It’s in bonds. It’s in currencies. It’s in real estate. It’s in private markets. It’s in public markets. It’s everywhere, because we are in such a state of change.

    Erdoes is an expert, so she’s going to look far beyond her home market for opportunities. Some ASX share investors do the same, so let’s check out her views on international stocks.

    Erdoes said:

    Don’t fight investing in China. It’s a country that is going to emerge from COVID. It’s a country that is going to put its 22% youth employment back to work. It’s an economy that is going to continue to invest in EVs, semis, et cetera.

    She also likes United Kingdom banking stocks, adopting a Buffett-esque view of being ‘greedy only when others are fearful‘.

    She said:

    Last week people said don’t invest in a single thing in the UK. That is exactly when people like us, and people in the room, think, ’Let’s go look right there’.

    Let history be your guide

    The following table published by CBNC demonstrates how staying in the market has worked at various historical points. What it does is ensure you are in the market on its best days of recovery.

    While this data represents the S&P 500 in the US, the same principle applies to ASX shares, too.

    Source: cnbc.com

    The post Expert reveals ‘one of the most important things’ to do in the share market right now appeared first on The Motley Fool Australia.

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    JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen 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 JPMorgan Chase. 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 fear of inflation mean ‘missing out on periods of strong share market returns’?

    A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.

    The latest Australian inflation data shows the ‘new’ consumer price index (CPI) fell by 20 basis points to 6.8% from July to August.

    Nevertheless, markets are still wagering that the Reserve Bank of Australia (RBA) will deliver a 50 basis point increase to the cash rate when it meets for its policy meeting next week.

    Should it complete the full 50 basis points this would bring its policy rate to a near-decade high of 2.85%.

    Surprisingly, while still an enormously high CPI print for July–August, markets have taken the small decrease in inflation reasonably well. The S&P/ASX 200 Index (ASX: XJO) closed 1.44% higher on Thursday.

    Inflation must go: RBA

    The stimulus for the RBA’s hiking cycle is the abnormally high inflation and central banks around the world have made a commitment to stamp it out.

    Empirical data shows that inflation is a unique and nasty occurrence for investor portfolios as it hurts both stocks and bonds – thus breaking down traditional rules of diversification.

    As a result, the downside seen on the charts this year has been deep and widely felt.

    However, those opting to sit on the sidelines for too long might be missing out on some ample opportunities to invest, so says Pengana Capital.

    “[H]istoric data suggests that waiting for certainty that markets have bottomed, and interest rates are again falling, may mean missing out on periods of strong share market returns,” the firm recently wrote on its website.

    Pengana notes that markets are forward-looking and are constantly seeking to price in all of the ‘negative’ news – be it surrounding an event, a particular company, or the economy at large.

    This is important, as by the time the worst of any economic fallout is felt, investors will already be looking at what is coming next.

    In the event of a recession, say, the market would be looking to when the next upswing in the economic cycle will be, versus the current situation.

    Market positioning is very important

    How the market perceives the future has implications on what ‘factors’ are set to perform as well, namely growth or value stocks.

    Pengana notes that growth, while overly sensitive to the business cycle, often makes a comeback earlier than most originally predict.

    Oftentimes, the firm says, this comeback performance begins to stage itself before there is a full market bottom – as was seen in 2002 and 2009, following those two market crashes.

    Thinking about Pengana’s arguments a little more, there’s actually weight behind them. Markets do move in cycles, and there is always a winning and losing side to every trade.

    In particular, waiting on the sidelines for too long in this economic climate also prohibits the investor from participating in large shifts in investor sentiment.

    Right now, for example, the Great British Pound (GBP) is taking a beating on the foreign exchanges, and this has forward-reaching implications for companies who are domiciled here, and export to the country.

    Further, there’s also been an enormous rally in commodity prices in a cause-effect pattern throughout the past 12 months, and this has set ASX mining giants up to pay large dividends for years to come.

    The point is, being a prudent investor means continuously weighing up a large data set and then synthesising that data into quick, actionable insights to make decisions.

    Often that means thinking beyond the current situation, keeping a long-term view in mind always.

    That also means trying to pick a top or bottom in the cycle is a risk not worth taking, a point that’s backed up by years of historical data. Instead, remaining true to the tried and tested ‘tenements’ of investing are paramount.

    As the saying goes, it’s time in the market, not timing the market, that matters.

    The post Could fear of inflation mean ‘missing out on periods of strong share market returns’? 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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  • The market has had a great day, but these ASX 200 tech shares smashed it

    A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.

    The S&P/ASX 200 Index (ASX: XJO) had a good trading day today, closing a healthy 1.44% higher. But multiple ASX 200 tech shares outperformed the index.

    The Block Inc (ASX: SQ2), Wisetech Global Ltd (ASX: WTC) and Megaport Ltd (ASX: MP1) share prices all finished well in the green today.

    Block shares leapt 4.96%, while shares in Wisetech were 2.65% higher at the end of trade today. Megaport shares joined the green run, jumping 4.66%, and the NextDC Ltd (ASX: NXT) share price closed 1.8% higher.

    The S&P/ASX All Technology Index (ASX: XTX) finished the day up 1.31%.

    NASDAQ leads the lift

    ASX 200 technology shares followed in the footsteps of the tech-heavy NASDAQ in the United States on Wednesday.

    Stronger investor sentiment appeared to drive these strong gains, as my Foolish colleague James reported earlier.

    The NASDAQ Composite Index jumped 2%. Meta Platforms Inc (NASDAQ: META) soared 5.36%, while Affirm Holdings Inc (NASDAQ: AFRM) leapt 6.55%.

    Block’s New York Stock Exchange listing, Block Inc (NYSE: SQ), rose 7%.

    However, some analysts are concerned investors have not fully priced in rate rikes and the impact on earnings, CNBC reported.

    Duquesne Capital founder and billionaire investor Stanley Druckenmiller, quoted by the publication on Wednesday, warned a recession could be looming. He said:

    I will be stunned if we don’t have recession in ’23. I don’t know the timing but certainly by the end of ’23. I will not be surprised if it’s not larger than the so-called average garden variety.

    The post The market has had a great day, but these ASX 200 tech shares smashed it appeared first on The Motley Fool Australia.

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    Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Affirm Holdings, Inc., Block, Inc., MEGAPORT FPO, Meta Platforms, Inc., and WiseTech Global. The Motley Fool Australia has positions in and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia has recommended MEGAPORT FPO and Meta Platforms, 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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  • Boss Energy share price jumps 8% on bullish broker note

    A woman jumps for joy with a rocket drawn on the wall behind her.

    A woman jumps for joy with a rocket drawn on the wall behind her.The Boss Energy Ltd (ASX: BOE) share price was a star performer on Thursday.

    The uranium explorer’s shares rose 8% to $2.53.

    Why did the Boss Energy share price surge higher?

    There were a couple of catalysts for the rise by the Boss Energy share price today.

    The first was a major rebound by ASX shares on Thursday following a very strong night of trade on Wall Street.

    This saw the S&P/ASX 200 Index (ASX: XJO) end the day with a gain of 1.45% to 6,555 points.

    What else?

    Also giving the Boss Energy share price a boost was a broker note out of Bell Potter.

    According to the note, the broker has retained its speculative buy rating with an improved price target of $3.51.

    This implies potential upside of 44% for investors over the next 12 months even after today’s strong gain.

    It commented:

    We maintain our Speculative Buy recommendation and increase our valuation to $3.51/sh (previously $3.32/sh). We have rolled our model forward, which contributed the modest 6% increase in our valuation. We make no changes to forward earnings in this note. Uranium markets are recovering from a cyclical low with limited near-term supply capacity and further demand upside driven by decarbonisation efforts.

    BOE represents an opportunity to gain exposure to a fully permitted project, currently on care and maintenance, in a tier 1 jurisdiction, with a comparatively short lead time to first production. In addition to this, we believe there is resource expansion upside in the current portfolio, with drilling currently underway.

    The post Boss Energy share price jumps 8% on bullish broker note 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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  • Looking to buy Telstra shares but worried about an Optus-style hack? Read this

    a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.

    Investors could be rightfully concerned about what the recent Optus hack could mean for ASX 200 telco shares such as Telstra Corporation Ltd (ASX: TLS) moving forward.

    Cyber attacks are costly to amend. A successful attack costs the company and allows affected users to be up for further liabilities.

    The problem is that once one website is hacked and its user database is leaked online, anyone can use these credentials to try to guess the username and password of other accounts the affected users might have. This puts social media, banking, email, and other accounts in danger of also being breached on a broad scale from a single successful attack on a prominent website.

    Ex-Telstra boss responds to Optus breach

    It may come as reassuring news that the former Telstra boss David Thodey has underlined the importance of good cyber security practices in an article published by the Australian Financial Review on Wednesday evening.

    It may be hoped that Telstra will take Thodey’s warning that “it could happen to anyone” seriously and perhaps assuage investors’ fears by making an announcement of its own.

    Thodey said:

    It is the reality of the world in which we live. You’ve got to be incredibly vigilant. I feel for Optus, it’s a difficult situation and I think they’re responding as best they can. Because it’s going to happen to all of us at some point, and then it’s what you do with it or how you respond.

    Cybersecurity for all of us, it doesn’t matter if you’re a small or big business, it is enormously high risk and we all need to be very vigilant about it because it could happen to any of us.

    How did telco shares perform on Thursday?

    The Telstra share price ended Thursday’s session 1.57% higher at $3.88.

    Meanwhile, the TPG Telecom Ltd (ASX: TPG) share price also ended the day in the green, up 3.15% to $4.89.

    With these telco shares up, it might be unsurprising that the S&P/ASX 200 Telecommunication Services Index (ASX: XTJ) closed 1.83% higher today.

    Broader still, the S&P/ASX 200 Index (ASX: XJO) finished up 1.44%.

    Telstra share price snapshot

    The Telstra share price is down 8% this year to date and 2.5% over the past month. Meanwhile, the ASX 200 is down 14% and 6% over the same timeframes.

    Telstra has a market capitalisation of around $44.13 billion.

    The post Looking to buy Telstra shares but worried about an Optus-style hack? Read this appeared first on The Motley Fool Australia.

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    Motley Fool contributor Matthew Farley 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 Australia has recommended TPG Telecom 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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  • Here are the top 10 ASX 200 shares today

    Three excited business people cheer around a laptop in the officeThree excited business people cheer around a laptop in the office

    The S&P/ASX 200 Index (ASX: XJO) posted its best day in weeks on Thursday, with all 11 sectors closing in the green. The index was 1.44% higher at 6,555 points as of market close.

    It followed a strong session on Wall Street overnight. The Dow Jones Industrial Average Index (DJX: .DJI), S&P 500 Index (SP: .INX), and Nasdaq Composite Index (NASDAQ: .IXIC) lifted 1.9%, 2%, and 2.05% respectively on Wednesday amid news the United Kingdom’s central bank has stepped in to help stabilise the nation’s economy, as the Guardian reports.

    Back home, the S&P/ASX 200 Energy Index (ASX: XEJ) led the way, gaining 2.8% today following a good night for oil prices.

    The Brent crude oil price lifted 3.5% to US$89.32 a barrel, while the US Nymex crude oil price gained 4.6% to US$82.15 a barrel.

    The S&P/ASX 200 Materials Index (ASX: XMJ) also performed well, rising 2.2% despite lower iron ore prices.

    Iron ore futures slipped 0.2% to US$98.52 a tonne overnight, while gold futures lifted 2.1% to US$1,670 an ounce.

    The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) and the S&P/ASX 200 Utilities Index (ASX: XUJ) brought up the rear, gaining just 0.04% and 0.02%, respectively, despite AGL Energy Limited (ASX: AGL)’s pledge to ditch coal by 2035.

    So, which ASX 200 share outperformed amid a sea of green on Thursday? Keep reading to find out.

    Top 10 ASX 200 shares countdown

    Today’s top-performing stock on the index was Premier Investments Limited (ASX: PMV).

    The operator of fashion chains posted its full-year earnings this morning, revealing record profits despite many of its businesses having faced COVID-19 closures.

    Today’s biggest gains were made by these shares:

    ASX-listed company Share price Price change
    Premier Investments Limited (ASX: PMV) $23.69 14.61%
    Coronado Global Resources Inc (ASX: CRN) $1.74 8.07%
    De Grey Mining Limited (ASX: DEG) $1.045 7.18%
    Sayona Mining Ltd (ASX: SYA) $0.24 6.67%
    New Hope Corporation Limited (ASX: NHC) $6.28 6.44%
    Paladin Energy Ltd (ASX: PDN) $0.775 5.44%
    Ramelius Resources Limited (ASX: RMS) $0.68 5.43%
    Domain Holdings Australia Ltd (ASX: DHG) $3.16 5.33%
    Evolution Mining Ltd (ASX: EVN) $1.985 5.03%
    Block Inc (ASX: SQ2) $88.80 4.96%

    Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today 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 recommended Premier Investments 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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  • Why did the Zip share price jump 4% today?

    A man reacts with surprise when her see a bargain price on his phone.A man reacts with surprise when her see a bargain price on his phone.

    The Zip Co Ltd (ASX: ZIP) share price enjoyed a rare day in the green today.

    After hitting a two-month low of 66 cents yesterday, the buy-now, pay-later (BNPL) provider’s shares made a comeback today.

    This is despite the company not releasing any announcements to the market today.

    At the close of trading, Zip shares were up 4.48% to 70 cents apiece — closing higher for just the second time in the past two weeks.

    Let’s take a look at what could be driving these gains.

    What’s powering Zip’s stock?

    Investors bid up the Zip share price following an uplift across the S&P/ASX 200 Financials Index (ASX: XFJ).

    In a sea of green, the financials sector ended the day up 0.99%.

    This comes after Wall Street posted strong gains overnight, with the Dow Jones lifting 1.88%.

    News emerged that the US Federal Reserve could back off its aggressive rate hikes to avoid a potential recession.

    This represents a change of events from when the central bank indicated it would raise interest rates despite the recession risk.

    Nonetheless, the financial industry is rebounding from the heavy beating it took this week, having declined 4%.

    Shares in fellow BNPL company Block Inc CDI (ASX: SQ2) also closed higher today, up 4.96%, while Sezzle Inc (ASX: SZL) retreated after early gains to finish flat at 49.5 cents.

    However, you might want to keep an eye out next week when the Reserve Bank of Australia (RBA) meets again.

    Last month, the RBA lifted the official cash rate to 2.35%.

    While this is the highest level it has been since early 2015, the RBA is using its toolkit to fight against the above-target inflation.

    Zip share price summary

    Over the past 12 months, the Zip share price has plummeted 90%. Year to date, it is down 84%.

    A challenging external environment mixed with the company’s widening credit losses and ballooning net losses appear to have scared investors off.

    Zip presides a market capitalisation of around $467.98 million.

    The post Why did the Zip share price jump 4% today? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Aaron Teboneras 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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, 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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  • CSL share price jumps despite JP Morgan’s latest caution

    A group of people in a corporate setting do a collective high five.A group of people in a corporate setting do a collective high five.

    The CSL Limited (ASX: CSL) share price closed Thursday’s session up 2.1% trading at $288.28.

    This is in line with the performance of ASX healthcare shares in general today. The S&P/ASX 200 Health Care (ASX: XHJ) finished up 2.1%. The S&P/ASX 200 Index (ASX: XJO) was up 1.93% at the close.

    The boost to the CSL share price today comes despite some predictions from top broker JP Morgan regarding CSL’s newly-acquired Vifor business.

    In a recent note to clients, analyst David Low said the broker had cut its expectations for Vifor’s contribution to CSL.

    According to The Australian, JP Morgan downgraded Vifor’s contribution by 8% for FY23 and 3% for FY24.

    After reviewing Vifor’s June half accounts, Low said:

    We attribute the weaker contribution to the drop in dialysis patients due to ‘excess COVID-19 mortality’ as reported by Fresenius Medical Care and its key competitor.

    While it will take time for patient numbers to recover, we believe this is a short-term issue which was understood by CSL when it bid for Vifor in December 2021.

    According to the article, a forecasted boost to CSL’s Behring sales and margins in FY24 may offset this. The boost is anticipated due to Mexican plasma donations recommencing after a recent court decision.

    So, while the broker expects lower earnings per share (EPS), it retains an overweight rating on CSL stock.

    Its 12-month share price target for CSL is $330. That’s a potential 14.5% upside on today’s closing price.

    That’s on par with the price target from the team at Macquarie. They’re tipping the CSL share price to reach $329.50 this time next year, my Fool mate Brendon Lau reports.

    Citigroup is more bullish with a price target of $340 on CSL shares. That would take CSL beyond its pre-pandemic record high of $336.40 per share recorded in February 2020.

    According to the AFR article, the biotech will provide an investor briefing on 17 October.

    CSL will hold its annual general meeting on 12 October.

    The post CSL share price jumps despite JP Morgan’s latest caution appeared first on The Motley Fool Australia.

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