Month: July 2021

Top brokers name 3 ASX shares to buy next week

finger pressing red button on keyboard labelled Buy

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Life360 Inc (ASX: 360)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target on this family focused app maker’s shares to $10.00. This follows the release of the company’s second quarter update. Credit Suisse has been impressed with its performance during the pandemic both in respect to customer growth and costs. It suspects the company could outperform its guidance in FY 2021 if current trading conditions persist. The Life360 share price was fetching $7.97 at Friday’s close.

Qantas Airways Limited (ASX: QAN)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $7.00 price target on this airline operator’s shares. While the broker notes that Qantas’ recovery is uncertain given recent lockdowns, it remains confident that there is significant upside when trading conditions return to normal. Morgan Stanley expects domestic capacity to average 80% of normal levels and international capacity to be 10% in FY 2022. The Qantas share price ended the week at $4.59.

Temple & Webster Group Ltd (ASX: TPW)

Another note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this online furniture and homewares retailer’s shares to $14.62. This follows the release of a strong full year result last week. Credit Suisse believes the company is well-placed for growth thanks to its strong market position and increasing online penetration. This is expected to be supported by its increased investment in marketing to grow brand awareness. The Temple & Webster share price was trading at $11.95 at Friday’s close.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

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. owns shares of and has recommended Life360, Inc. and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

Why did the Zip (ASX:Z1P) share price tumble 12% in July?

A man stands in front of a chart with an arrow going down and slaps his forehead in frustration.

It certainly was an eventful month for the Zip Co Ltd (ASX: Z1P) share price in July.

The buy now pay later (BNPL) provider’s shares were up as much as 16% month to date on 8 July before giving back all of this and more.

The Zip share price ultimately ended the period with a monthly decline of 12.3%.

Why did the Zip share price tumble lower last month?

There were a couple of catalysts for the weakness in the Zip share price in July.

One of those was concerns about increasing competition in the BNPL market. This follows news that PayPal is removing late fees from its BNPL service and rumours that Apple is entering the market.

In respect to the latter, Bloomberg reported that Apple is planning to disrupt the BNPL market with the launch of Apple Pay Later in the near future. This is believed to be part of the company’s plan to increase transaction volumes through Apple Pay, boosting its US$50 billion Services business.

There are fears that Apple’s entry could steal customers away from Zip and its QuadPay business, putting pressure on growth rates in the coming years.

What else weighed on its shares?

Also weighing on the Zip share price was the release of its fourth quarter results.

Zip delivered another record performance, reporting a 116% year on year increase in quarterly total transaction volume (TTV) to $1.8 billion and a 104% increase in quarterly revenue to $129.9 million. Positively, this was driven by record monthly revenue of $44.8 million in June, which annualises at $537.2 million.

Once again, its US-based QuadPay business was the key driver of its growth during the quarter. It reported a 107% year on year increase in revenue to $64.3 million. This was supported by a 39% lift in revenue in the ANZ and a modest contribution by its fledgling UK business.

Given that this was largely in line with the market’s expectations, investors may be wondering about the weakness in the Zip share price following its release.

That has been attributed to the fact that management didn’t comment on takeover speculation. This followed reports that rival Klarna has been building up a position in the company.

If these rumours are true, Klarna will no doubt be licking its lips at the pullback in the Zip share price in July. But time will tell if the reports amount to anything.

The post Why did the Zip (ASX:Z1P) share price tumble 12% in July? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Zip right now?

Before you consider Zip, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

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. owns shares of and has recommended 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.

from The Motley Fool Australia https://ift.tt/3ygPJ7n

2 ASX shares rated as strong buys by brokers

ASX shares latest buy ideas upgrade best buy Stopwatch with Time to Buy on the counter

There are a few ASX shares that multiple brokers like simultaneously right now.

A business that many brokers like at once might indicate that it’s an opportunity for investors to think about.

Brokers are always on the lookout for ideas that could be good to own. Of course, they could all be wrong at the same time.

Keeping that in mind, here are two that are liked by the broker industry:

IOOF Holdings Limited (ASX: IFL)

IOOF is a large financial services business. It provides financial advice through its network of financial advisers, portfolio and estate administration for advisers, their clients and hundreds of employers, and investment management products.

It’s currently rated as a buy by at least three brokers. One of the brokers that likes IOOF is Citi with a price target of $4.95. The broker was impressed by its quarterly update for the three months to 30 June 2021. One of the highlights was the net inflows in some areas.

IOOF’s portfolio and estate administration saw $606 million of net inflows and investment management saw a turnaround in flows with “robust” net inflows of $90 million.

However, financial advice saw $1.8 billion of net outflows, and pensions and investments (P&I) experienced net outflows of $895 million. The outflows were not as bad for the ASX share as the broker had been thinking.

Funds under management, advice and administration (FUMA) at 30 June 2021 was $213.3 billion, which was an increase of $9.4 billion over the quarter thanks to market movements.

MLC’s assets under management and funds under administration were $301.2 billion, up $11.4 billion over the fourth quarter. Currently, the two different businesses use different reporting methodology.

According to Citi, IOOF is valued at 12x FY22’s estimated earnings with a forward grossed-up dividend yield of 7.5%.

Telstra Corporation Ltd (ASX: TLS)

The telco giant is another ASX share that brokers like. It’s currently rated as a buy by at least four brokers including Credit Suisse.

The broker points to the asset sale of a minority stake of its towers business as a reason to be positive about the telco.

A few weeks ago, Telstra announce that it was going to sell 49% of its towers business for $2.8 billion as well as announcing returns for shareholders.

This towers business has approximately 8,200 towers, it’s the largest mobile tower infrastructure provider in Australia.

Telstra expects net cash proceeds after transaction costs of $2.8 billion at completion, which is expected in the first quarter of FY22.

The ASX share said it intends to return approximately 50% of net proceeds to shareholders in FY22.

Telstra said it was able to maximise overall value for shareholders whilst maintaining control of the assets. But it was also important for Telstra to preserve its “strategic differentiation in mobiles and protect” its “network leadership”.

The ASX share has entered into a 15-year agreement (with the option to extend) to secure ongoing access to existing and new towers.

Some of the net proceeds will be used to reduce debt so it can maintain balance sheet strength and flexibility.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

Should you invest $1,000 in Telstra right now?

Before you consider Telstra, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Motley Fool contributor Tristan Harrison 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 owns shares of 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3fkoEJ4

These were the best performing ASX 200 shares in July

happy woman throws arms in the air

The S&P/ASX 200 Index (ASX: XJO) was on form again in July. The benchmark index recorded a 1.1% gain to end the month at 7,392.6 points.

While a good number of shares climbed higher with the market, some climbed more than others. Here’s why these were the best performing ASX 200 shares in July:

Perenti Global Ltd (ASX: PRN)

The Perenti share price was the best performer on the ASX 200 last month with a 35.8% gain. There were a number of catalysts for this strong rise. This includes its Barminco business finalising a $280 million four-year contract with Panoramic Resources Limited (ASX: PAN) and a bullish broker note out of Macquarie. In respect to the latter, Macquarie put an outperform rating and 95 cents price target on its shares. The broker believes Perenti’s work in hand and order book will support strong free cash flow and underpin a generous dividend.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price wasn’t far behind with 34.9% gain. Investors were fighting to get hold of the airport operator’s shares after it received an $8.25 cash per share takeover offer from a consortium of infrastructure investors. This offer represented a 42% premium to its last close price at the time and valued the airport operator at $22.3 billion. However, Sydney Airport rejected the offer, noting that it was made during a global pandemic, which has deeply affected the aviation industry and the Sydney Airport share price. Investors appear optimistic an improved offer will be made.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was a strong performer in July and recorded a 28.5% gain. A good portion of this gain was made in the final week of the month following the release of its fourth quarter update. That update revealed that Lynas achieved a 79.7% increase in quarterly neodymium and praseodymium (NdPr) production to 1,393 tonnes during the three months. Together with the near doubling of its average realised price, Lynas reported a 389% increase in quarterly sales revenue to $185.9 million.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price was on form again and stormed 22% higher in July. This is despite the lithium miner’s shares spending the latter few days of the month in a trading halt. Investors were buying the company’s shares after investor sentiment in the industry increased further following a series of positive quarterly updates from lithium miners. Those updates revealed strong demand and pricing for lithium.

The post These were the best performing ASX 200 shares in July appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3rNqI1b