Christmas has come early for the bank’s shareholders with the decision to slightly increase the 2024 dividend – despite a single-digit decline in the net profit and cash earnings.
Beating the market benchmark is never easy, with 72 per cent of Australian actively managed global equity general funds trailing the S&P World Index in the six months to June 30, 2024. Domestic equity funds performed slightly better, albeit against a significantly lower bar set by the S&P/ASX 200 Index.
3 stocks to buy right now, according to the brokers
The S&P/ASX 200 Index finished the week in the black rising 1.7 percent supported by a return to risk. Miners and tech stocks provided the biggest contribution to the index on Friday, finishing the day up 2.8 percent and 2.3 percent respectively. Both the Australian and US markets have seen a modest rebound towards the end of the week, however, it’s a little too early to say whether the sell-off is over. This week brokers have issued a series of upgrades and Buy recommendations.
CSL – Australia’s healthcare giant, CSL, has had a tough three years after being stuck in reverse. For almost a decade its share price has been in a bullish uptrend and is regarded as the country’s bulletproof stock.
Citi has a Buy recommendation with a target price of $335. The broker is under the impression that improved plasma collations will directly benefit.
Macquarie has an Outperform recommendation with a target pricee of $327.50. The broker has upped its target price. The broker highlights that “foot traffic for over 100 of CSL’s US-based plasma collection centres has shown improved trends over March-May 2022. Management has indicated collection volumes are now largely in line with pre-covid levels.” The broker is of the view that earnings growth will be attractive to FY24 “supported by an assumed recovery in plasma collections, and benefits from the Rika platform and earnings contributions from Vifor.”
Mincor Resources NL (ASX:MCR) – Is a resources company that mines nickel and gold. Due to the mass production and commercialisation of electric vehicles, heavy demand for raw minerals used in EVs has pushed prices sky-high. To make matters worse, the supply of essential minerals has been disrupted by the war in Ukraine. Roughly 10 percent of the global supply of nickel comes from Russia. At one point, nickel prices soared over US$100,000 a tonne, but have since pulled back to $27,000.
- Macquarie has a Neutral recommendation with a target price of $2.40. The broker has estimates of 300kt (2.5% Ni) that have already factored into production forecasts but is confident total mineralisation could exceed 500kt.
Lottery Corporation (ASX:TLC) – Last month the demerger with Tabcorp (ASX:TAH) took place, with shareholders of Tabcorp receiving one Lottery Corporation share for every Tabcorp share held. The company will operate the Tatts Lotto and Keno business across Australia’s six states. Lottery Corporation also operates a group of well-known lottery games such as Powerball and Oz Lotto.
- Macquarie is positive on the Lottery Corporation business and says it is undervalued, “especiallty was given the given the infrastructure-like qualities and growth outlook.”
- Credit Suisse has upgraded to an Outperform recommendation with a target price of $6.20 i.e. $4.95 Lottery and $1.25 Tabcorp.
