Day: January 25, 2021

Leading brokers name 3 ASX shares to sell today

laptop keyboard with red sell button

On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

According to a note out of Citi, its analysts have retained their sell rating but lifted their price target on this medical device company’s shares to NZ$26.50 (A$24.72). While Citi acknowledges that Fisher & Paykel Healthcare’s recent trading update was very strong, it isn’t enough for a change in rating. The broker continues to believe that the company’s shares are overvalued at the current level. The Fisher & Paykel Healthcare share price last traded at $32.91.

Reece Ltd (ASX: REH)

A note out of Morgans reveals that its analysts have downgraded this plumbing parts company’s shares to a reduce rating with a price target of $11.45. The broker has reduced its earnings estimates to reflect a stronger Australian dollar. In addition to this, the broker feels that its valuation is stretched after a strong gain over the last few months. The Reece share price was trading at $16.98 on Monday.

Zip Co Ltd (ASX: Z1P)

Analysts at Macquarie have retained their underperform rating but lifted the price target on this buy now pay later provider’s shares to $5.35. According to the note, Zip Co delivered a stronger than expected second quarter update thanks largely to its US-based Quadpay business. It reported a 217% increase in transaction volume to $673.1 million and a 180% lift in customer numbers to 3.2 million in the key market. However, the broker is concerned that competition is intensifying and suspects that customer acquisition costs could increase in 2021. The Zip share price was trading at $7.42 on Monday.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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 Bruce Jackson.

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

from The Motley Fool Australia https://ift.tt/369qLe7

3 explosive ASX growth shares that could be strong buys

Colourful explosion to symbolise ASX share price growth

If you’re a growth investor on the lookout for a few investment ideas, then the shares listed below could be worth considering.

They all look well-positioned for growth over the next decade and could generate outsized returns for investors. Here’s why they are highly rated:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you’re keen to get some international exposure then you could invest in some of the fastest growing tech companies in the Asia market via the BetaShares Asia Technology Tigers ETF. Through a single investment, investors will be buying a piece of companies that are revolutionising the lives of billions of people in the region. This includes ecommerce giant Alibaba, search engine company Baidu, and WeChat owner, Tencent.

Nanosonics Ltd (ASX: NAN)

Another growth share to look at is Nanosonics. It is an infection control company which is responsible for the hugely popular trophon EPR disinfection system for ultrasound probes. The company is also aiming to launch several new products in the coming years. These secretive products are understood to have similar addressable markets to the trophon EPR system. If these products are a success, they could underpin strong earnings growth over the next decade and beyond. Analysts at UBS are positive on the company and have a buy rating and $7.20 price target on its shares.

Pushpay Holdings Ltd (ASX: PPH)

A final ASX growth share to look at is Pushpay. It is a fast-growing donor management and community engagement platform provider to the faith sector in the United States, Canada, Australia, and New Zealand. Pushpay’s platform usage has been growing strongly in recent years, leading to the company delivering a ~1,500% increase in EBITDAF in FY 2020. Pleasingly, more strong growth is expected this year, with the company on course to more than double its operating earnings. Looking further ahead, Pushpay is aiming to win a 50% share of the medium and large church market. This represents a US$1 billion revenue opportunity for Pushpay. Goldman Sachs is a fan and has a conviction buy rating and $2.59 price target on its shares.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Nanosonics Limited and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 explosive ASX growth shares that could be strong buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sRyLKR

These ASX 200 shares have been smashed in 2021

red chart with downward arrow

Although the S&P/ASX 200 Index (ASX: XJO) has just climbed to an 11-month high, not all shares are faring as well.

The three ASX 200 shares listed below, for example, have fallen heavily in 2021. Here’s why they have been beaten down:

Altium Limited (ASX: ALU)

The Altium share price has fallen 12.5% since the start of 2021. Investors have been selling the electronic design software provider’s shares after it released its guidance for the first half. Altium is expecting to deliver revenue of around US$89.6 million for the half, which will be down 3% on the prior corresponding period. This soft performance has been caused by COVID-19 lockdowns, which have been impacting its sales in the United States and Europe. However, management is expecting its performance to bounce back in the second half. As a result, it has retained its full year guidance of revenue growth of 6% to 12%.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price has dropped 12.2% so far in 2021. The decline has been driven by news that SS&C Technology has withdrawn its takeover offer. In December, the NASDAQ listed global provider of investment and financial software made a conditional offer of $5.65 per share to acquire 100% of Link. While management felt the offer undervalued the company, it granted SS&C Technology due diligence. After completing its due diligence, SS&C Technology revealed it has decided to withdraw its offer.

Polynovo Ltd (ASX: PNV)

The PolyNovo share price has been well and truly out of form and has lost 31.4% of its value since the start of the year. The medical device company’s shares were sold off following the release of a trading update. Although PolyNovo delivered a 31% increase in half year sales, this fell well short of expectations due to a weak second quarter. Bell Potter wasn’t impressed, commenting: “Polynovo announced a relatively disappointing trading update, with 1H FY21 sales growth of 31% vs the pcp well below our forecasts, consensus and management expectations.” The company may need a strong second half to win over investors and analysts again.

This Tiny ASX Stock Could Be the Next Afterpay

One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…

Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.

Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!

Returns as of 6th October 2020

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd and POLYNOVO FPO. The Motley Fool Australia has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These ASX 200 shares have been smashed in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Mogfsy

Bernie meme, mittens and merch: 2 shares that are selling the trend

A hand holding a ball of wool up like a red balloon, indicating a riding share price for creative companies

Regardless of where we sit on the political spectrum, we can all appreciate a good meme. The latest humorous trend comes from a cozy Senator Bernie Sanders donning a pair of homemade mittens at Joe Biden’s inauguration last week. The image of the former United States democratic presidential candidate resonated with people globally, as a ‘vibe’.

Sure enough, the candid image was translated to a meme phenomenon – with Bernie finding himself photoshopped into an endless number of locations, historical events, and just plain odd places – all for a bit of a well-needed laugh.

Where the memes flow, the money goes

It’s no surprise that the Bernie meme and his mittens have become merchandisable. The original mittens worn by Mr Sanders were made and gifted by a Vermont teacher, Jen Ellis, to the Senator. As reported in the New York Daily News, the gifted pair made from repurposed wool sweaters and recycled plastic bottles were one-of-a-kind.

A classic case of supply and demand ensued, and the market has delivered. Now there are plenty of options for various Bernie mitten merchandise available online to get your mitts on. A couple of such companies include Etsy Inc (NASDAQ: ETSY) and ASX-listed Redbubble Ltd (ASX: RBL).

Bernie meme merch up for grabs here

Redbubble Ltd (ASX: RBL)

Redbubble operates a handful of global online marketplaces, offering products embellished with creative designs by independent artists.

The main site, redbubble.com, ranges face masks, mugs, stationery, clothing, stickers, décor, and many other items. Consumers can search for a design they like and then select a type of medium they’d like it applied to before purchasing.

The Redbubble share price has grown a significant 591% over the last year, with the drastic increase in demand for face masks and inflated online shopping activity. For the first quarter FY21, Redbubble’s revenue grew by 114% year over year to $175.8 million.

Another interesting titbit is the astronomical 562% year over year growth in the ‘accessories’ segment of the business – this segment includes face masks, tote bags, socks etc.

The independent artists that provide the designs to the platform often jump on hot trends, and right now, Bernie Sanders is trending on Redbubble. So you can bet your bottom dollar that both artists and Redbubble are cashing in on those iconic mittens.

https://platform.twitter.com/widgets.js

Etsy Inc (NASDAQ: ETSY)

Etsy is another e-commerce company that connects unique designs and creations to customers. Where Etsy differs from Redbubble however, is by solely operating the platform in which products are offered – whereas Redbubble produces the products with the artist’s designs. That means that Etsy has a much more diverse offering of products, and yes… that includes mittens. 

The US-listed company has also benefitted from the uptick in face mask sales, notching up US$264 million in gross merchandise volume for face masks alone in the quarter. However, as demonstrated in Etsy’s Q3 2020 results, the business has managed to outpace the e-commerce benchmark even without the inclusion of face masks by 48%. 

Following the trend, Etsy contributors have also jumped on the Bernie meme bandwagon. Everything from stickers, sweaters, and those warm mittens. Personally, my favourite is the crochet of Bernie and his mittens.

https://platform.twitter.com/widgets.js

Much like the Redbubble share price, Etsy is no slacker either, returning 333% in the last year. 

Foolish takeaway

It’s great to see some light-hearted fun come out of the inauguration and hopefully, the meme-inducing unity continues for Joe Biden’s term as US president. The main takeaway here though is that often where there’s a trend, there’s someone benefitting from it and money to be made. Although one Bernie meme likely won’t make or break a company, it draws focus to the new ways in which the world is monetising humour and creativity. 

But this also serves as a public service announcement for anyone still trying to find those elusive mittens. You’re welcome.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Etsy. 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 Bruce Jackson.

The post Bernie meme, mittens and merch: 2 shares that are selling the trend appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3plk8gt