Day: September 11, 2021

Broker names the 3 best ASX tech shares to buy

A hand hovers over a laptopn sparkling with tech symbols, indicating ASX technology shares

If you’re interested in investing in the tech sector, then you may want to look at the three ASX tech shares listed below.

These tech shares are the ones that the team at Bell Potter believe are the top three options in the sector right now.

Here’s what you need to know:

Nitro Software Ltd (ASX: NTO)

This document productivity software company is now the broker’s number one pick in the sector, partly for valuation reasons.

It commented: “[Nitro] Moves up to our number one pick given the slight pullback in share price following the 1H2021 result – which was good but not great – and our expectation the next few results (i.e. 2H2021, 1H2022 and 2H2022) will all show strong top line growth on the back of the increase in sales staff in 1H2021 and also the recent commencement of charging for eSigning.”

Bell Potter currently has a buy rating and $4.00 price target on Nitro’s shares.

Infomedia Limited (ASX: IFM)

The broker is also a big fan of this leading global provider of software as a service solutions to the parts and service sector of the automotive industry.

Bell Potter explained: “A new key pick following the better than expected outlook and guidance for FY22 which suggests a return to reasonable if not good organic growth in FY22 after this was relatively low in FY21 due mostly to the impacts of COVID-19 and, in particular, global shutdowns and travel restrictions.”

Its analysts have a buy rating and $2.00 price target on Infomedia’s shares.

Life360 Inc (ASX: 360)

Finally, this fast-growing family focused app maker remains in the broker’s top three sector picks.

The broker said: “[Life360] Remains a key pick but moves down to number three following the strong share price performance though we believe good upside remains with the company expected to be a key beneficiary of country’s reopening – particularly in the US – and the likelihood of a material M&A transaction in the coming months which may help better monetise the large active user base. “

Bell Potter has a buy rating and $10.75 price target on Life360’s shares.

The post Broker names the 3 best ASX tech shares to buy 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 August 16th 2021

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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. owns shares of and has recommended Infomedia and Life360, Inc. The Motley Fool Australia has recommended Infomedia and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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2 ASX shares that may be worth looking at this weekend

Galaxy Resources capital raisegrowth in asx share price represented by multiple hands all placing coins in a piggy bank

This weekend could be a handy time to look into some quality, growth-focused ASX shares.

Businesses that are growing their revenue and profit margins give themselves a good chance of growing the bottom line and hopefully producing returns for shareholders.

These two companies could be ones to watch:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a leading ASX tech share in the electronic donation space. It is facilitating the digitalisation of large and medium churches in the US. It provides donation tools for its customers and, bolstered by the acquired Church Community Builder, offers church management tools.

The business is both growing revenue and its profit margins as more people shift to digital donations.

FY21 saw processing volume rise 39% to US$6.9 billion, with operating revenue increasing 40% to US$179.1 million. The gross profit margin increased from 65% to 68%, whilst total operating expenses as a percentage of operating revenue improved 11 percentage points, from 47% to 36%. Net profit jumped 95% to US$31.2 million. Operating cashflow increased 145% to US$57.6 million.

Pushpay says it expects operating leverage to accrue as operating revenue continues to increase, whilst growth in total operating expenses remains low.

The ASX share recently acquired Resi Media, to add to its streaming solutions for the Pushpay product suite. This acquisition cost US$150 million.

Management said this acquisition accelerates front book growth, adding a further stream of high growth and high margin software as a service (SaaS) revenue.

The Pushpay share price is currently valued at 29x FY23’s estimated earnings according to Commsec.

EML Payments Ltd (ASX: EML)

EML Payments is another business in the payments space. It has a few different business segments.

There’s the general purpose reloadable division – this has uses like salary packaging and gaming payouts. It has gift and incentive, which is used for things like shopping centre gift cards and consumer incentives. Finally, there’s virtual account numbers, with use cases like commercial payments and buy now, pay later.

It’s benefiting from the shift to digital payments. FY21 saw gross debit volume (GDV) increase 42% to $19.7 billion, with revenue rising 60% to $194.2 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 65% to $53.5 million.

Regarding the Central Bank of Ireland (CBI) concerns, the ASX share said it’s working constructively with CBI and has responded in significant detail on all matters, and has provided CBI with a detailed remediation plan addressing the concerns raised. EML expects the remediation plan to be substantively complete by the end of the 2021 calendar year, with the remaining items remediated by the end of March 2022.

In FY22, EML is expecting its underlying EBITDA to rise by at least 8.4%, to a range of $58 million to $65 million.

According to Commsec, the EML share price is valued at 29x FY23’s estimated earnings.

The post 2 ASX shares that may be worth looking at this weekend appeared first on The Motley Fool Australia.

Should you invest $1,000 in EML Payments right now?

Before you consider EML Payments, 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 EML Payments 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 August 16th 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. owns shares of and has recommended EML Payments and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended EML Payments 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.

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Leading broker say Telstra (ASX:TLS) share price is a buy

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Last week the Telstra Corporation Ltd (ASX: TLS) share price ended the period at $3.88.

This means the telco giant’s shares are now up 29% since the start of the year.

This is more than double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the Telstra share price?

The good news for shareholders is that one leading broker believes the Telstra share price can keep rising.

According to a recent note out of Goldman Sachs, its analysts have a buy rating and $4.30 price target on the company’s shares.

Based on the latest Telstra share price, this implies potential upside of almost 11% over the next 12 months before dividends.

And if you include the 16 cents per share fully franked dividend the broker is forecasting in FY 2022, the potential return stretches to 15%.

Why is Goldman positive on Telstra?

Goldman Sachs has a buy rating on the Telstra share price due partly to its belief that the telco giant’s key mobile business will drive growth in the coming years.

This is not only expected to bring an end to dividend cuts, but also lead to a dividend increase in FY 2024. Goldman is forecasting dividends per share of 16 cents through to FY 2023 and then 18 cents in FY 2024.

With the Telstra share price currently trading at $3.88, the latter will mean an attractive fully franked 4.6% yield.

Commenting on its mobile growth, Goldman said: “We forecast +5% MSR growth in FY22/23E driven by: (1) Consumers transacting at pricing $6-7 above FY19; (2) deferred 5G price rises; (3) Enterprise/Small Business returning to growth; and (4) c.$250mn of roaming revenues returning.”

“We also believe that as long as TLS is growing mobile subs, it will be happy to cede share in exchange for a more rational ARPU environment. Finally, we expect service revenue growth and residual productivity savings to drive c.400bps of margin expansion, noting our 43% FY23 margin is still low relative to prior levels (adj. for AASB16/MTAS is 38.7% vs. 41% peak),” it added.

The post Leading broker say Telstra (ASX:TLS) share price is a buy 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 August 16th 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 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.

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2 excellent ASX dividend shares for income investors

Dividend stocks represented by paper sign saying dividends next to roll of cash

If you’re an income investor on the lookout for dividend options, then you may want to look at the two listed below.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent Group. It is a retail group with a focus on the leisure footwear market.

Accent has been growing at a solid rate over the last few years thanks to the popularity of its store brands, its network expansion, and strong demand. This continued in FY 2021, with Accent recently reporting a 19.9% increase in sales to $1.14 billion and a 38.6% jump in net profit after tax to $76.9 million.

And although the team at Bell Potter are expecting a softer result next year, they remain very positive on the longer term.

A recent note reveals that Bell Potter has a buy rating and $2.90 price target on its shares. The broker is also expecting fully franked dividends per share of 9 cents in FY 2022 and 13 cents in FY 2023.

Based on the current Accent share price of $2.14, this will mean fully franked yields of 4.2% and 6.1%, respectively.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Another ASX dividend share for income investors to look at is banking giant ANZ.

It could be a top option for income investors due to its improving outlook and cost cutting plans. The latter sees the company aiming to reduce its cost base materially to $8 billion in the near future.

In addition, ANZ has a very strong capital position. At the end of the third quarter, ANZ’s CET1 ratio stood at 12.2%.

This is well ahead of APRA’s unquestionably strong benchmark of 10.5%, giving the bank plenty of opportunities to return funds to shareholders. For example, ANZ’s recently announced $1.5 billion share buyback is only expected to reduce its CET1 ratio by 35 basis points.

Analysts at Morgans are bullish on the bank. They currently have an add rating and $34.50 price target on ANZ’s shares.

In addition, the broker is forecasting fully franked dividends of 145 cents per share in FY 2021 and then 165 cents per share in FY 2022. Based on the latest ANZ share price of $27.59, this represents yields of 5.1% and 5.8%, respectively.

The post 2 excellent ASX dividend shares for income investors 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 August 16th 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 recommended Accent Group. 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/3np18iZ