Day: September 25, 2021

Is this ASX 200 miner one of the best value shares to buy today

ASX 200 mining shares value buy An orange sign with the word value against a blue cityscape, representing ASX value shares

Investors hunting for bargains among beaten down S&P/ASX 200 Index (Index:^AXJO) mining shares might want to put the Sandfire Resources Ltd (ASX: SFR) share price on their watch list.

This isn’t because the copper miner as tumbled more than its peers. If anything, the Sandfire share is outperforming the iron ore miners as it’s sitting on around a 7% gain over the past six months.

In contrast, the Fortescue Metals Group Limited (ASX: FMG) share price crashed 24%. The BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price lost 16% and 10%, respectively.

Merger news makes this ASX 200 miner a better buy

The excitement around Sandfire comes off its $2.6 billion takeover of Minas de Aguas Teñidas (MATSA) copper mine in Spain.

The transaction will transform Sandfire into a major global copper producer.

The analysts at Morgan Stanely reckons the takeover price is attractive at 4.8 times earnings before interest, tax, depreciation and amortisation (EBITDA).

What experts think of the MATSA acquisition

“Plus, the transaction would address near-term production reduction from Degrussa with Motheo (Botswana) ramping up from FY24 onwards,” said the broker who reiterated its “overweight” recommendation on the Sandfire share price.

“We find the current 6-year Reserve life shows extension potential.”

One of the best ASX 200 value buys in mining

But even before the MATSA deal, Macquarie Group Ltd (ASX: MQG) was already tipping a circa 70% total return on the Sandfire share price.

Its optimism is due to Sandfire’s Motheo project. Motheo prompted the broker to significantly upgrade its earnings forecast for the miner on Wednesday, ahead of the MATSA news.

“SFR expects the addition of the A4 deposit to lift peak production at Motheo to ~60ktpa of copper in concentrate for FY27 and FY28,” said Macquarie.

“This was 25% above our forecast peak production of 48ktpa for FY27-FY29.

“We lift our FY23 copper production forecast by 21%, while our FY24 and FY25 forecasts rise 58% and 37%, respectively. We also lift FY26-FY28 copper production by ~25%.”

What is the Sandfire share price worth

Even before considering the big near-term production uplift from MATSA or the $1.2 billion capital raise, Macquarie 12-month price target on the Sandfire share price is $10.60 a share.

Further, given that many experts have a bullish outlook for copper over the next year or so, the Sandfire share price could play catch up with its bigger peer, the OZ Minerals Limited (ASX: OZL) share price.

The Sandfire share price is currently in a trading halt but has rallied 49% over the past year. In contrast, the OZ Minerals share price has advanced 64%.

The post Is this ASX 200 miner one of the best value shares to buy today 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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3 ASX shares with bags of potential

share price gaining

Looking for a growth share or two to buy after the weekend break? Three that could be worth considering are listed below.

All three have been tipped to grow strongly over the 2020s. Here’s what you need to know about them:

Appen Ltd (ASX: APX)

The first growth share to look at is this leading developer of high-quality, human annotated datasets for machine learning (ML) and artificial intelligence (AI). It was growing at a very impressive rate until the pandemic led to the softening of demand from some of its biggest customers. Pleasingly, AI and ML markets are expected to rebound once the pandemic passes, which bodes well for Appen’s future.

Citi believes it is worth sticking with the company. It recently put a buy rating and $18.80 price target on Appen’s shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. Like Appen, it was hit hard by the pandemic. However, it has been tipped to bounce back strongly. Particularly given its increasingly popular software offering, strengthening market position, and a key acquisition in India.

UBS is very positive on the company’s outlook. It recently put a buy rating and $36.40 price target on its shares.

Life360 Inc (ASX: 360)

A final ASX growth share to look at is Life360. It is the growing technology company behind the Life360 family app. Life360 has also recently expanded into the wearables market via the acquisition of Jiobit, increasing its total addressable market and opening up cross selling opportunities to its 32.3 million Monthly Active Users.

Bell Potter currently has a buy rating and $10.75 price target on Life360’s shares. It sees plenty of opportunities to monetise its growing user base.

The post 3 ASX shares with bags of potential 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. owns shares of and has recommended Appen Ltd, Idp Education Pty Ltd, and Life360, Inc. The Motley Fool Australia owns shares of and has recommended Appen Ltd. 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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Broker names 2 small cap ASX shares to buy

ASX 200 mining shares to buy A clockface with the word 'Time to Buy'

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

Here’s why the team at Bell Potter are positive on them:

Infomedia Limited (ASX: IFM)

Infomedia is a technology services developer and supplier of electronic parts catalogues and service systems to the automotive industry. In addition, the company provides information management and analysis for the Australian automotive and oil industries.

Bell Potter currently has a buy rating and $2.00 price target on its shares. This compares to the latest Infomedia share price of $1.71.

It commented: “Infomedia has underperformed the tech sector over the past 12-18 months due mainly to a reasonably large capital raising in May 2020 after which it sat on the cash for a year, an ordinary 1HFY21 result and more recently the resignation of the CFO. The company appears to have turned the corner, however, with a much better 2HFY21, a good acquisition and the appointment of a new CFO. In our view the stock is worth a revisit given it has underperformed, is not expensive and is not a crowded trade.”

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a medical technology company with a focus on breast imaging analytics and analysis products. These products improve clinical decision-making and the early detection of breast cancer.

The analysts at Bell Potter currently have a buy rating and $1.60 price target on its shares. This compares to the most recent Volpara share price of $1.21.

The broker is expecting strong growth in FY 2022, driven partly by the recent acquisition of CRA.

It explained: “Over the course of FY22 we expect record organic revenue growth as the company leverages is technology platform into an expanded base of customers. This includes numerous CRA only deals where the technology is integrated with the major electronic health record providers in the US.”

The post Broker names 2 small cap ASX shares to buy appeared first on The Motley Fool Australia.

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

Before you consider Volpara, 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 Volpara 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

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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 VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Infomedia. 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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What’s moving the Afterpay (ASX:APT) share price since the Square news?

A hipster dude leaps in the air with glee, seeing positive news on his tablet.

The Afterpay Ltd (ASX: APT) share price has been marching higher these past few days, finishing the week’s trading 7% in the green.

That’s a complete reversal to how Afterpay began its walk to start September – it had a quick slip from $133.30 to $122.20 in just two weeks, before recovering.

Let’s take a closer look at what’s moving the soon-to-be acquired buy now pay later (BNPL) pioneer.

What’s up with the Afterpay share price since the Square deal?

Recall that US retail payments giant Square Inc (NYSE: SQ) recently agreed to purchase Afterpay in the largest transaction in ASX history – $39 billion.

It’s an all-scrip consideration that will see Square exchange its own shares, at a certain rate, for each individual share in the BNPL giant.

The exchange ratio is set at 0.375, meaning Afterpay shareholders will receive 0.375 Square shares for each individual share they own.

As it stands, this implies a valuation of A$137 per Afterpay share, after recent gains in Square’s share price on the US exchange.

These gains are important for the Afterpay share price – for each US$1 that Square’s share price goes up in value, the Afterpay’s implied valuation concurrently increases by 37.5 cents.

Square’s share price has gained 25% in the last 6 months and is up a further 4% in the past 5 days. Great news for Afterpay investors.

Given this growth in the new Afterpay owner’s market capitalisation – which now sits at US$122.6 billion – and factoring in this mathematical relationship, it starts to make sense as to why Afterpay shares have gained over the past week or so.

The above is spurred on by a weaker AUD versus the USD, which inherently enriches the valuation due to the exchange rate effect.

Investors appear to want a piece of the action, in the hope of nabbing Afterpay shares at a bargain as their valuation increases, in unison with Square’s share price.

If that is the case, then it stands to reason that the trend will continue, as the Square share price continues to march higher. It finished Thursday’s session 2% higher, at US$266.72.

Afterpay share price snapshot

The Afterpay share price has gained almost 80% in the past 12 months, with only 12% of that obtained this year to date.

In the last month, Afterpay shares are in the red. Not much had happened with Afterpay shares prior to this week, since the commotion after the Square deal was announced.

However, given the recent surge in Square’s share price, the Afterpay share price is booking gains once again.

The post What’s moving the Afterpay (ASX:APT) share price since the Square news? appeared first on The Motley Fool Australia.

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

Before you consider Afterpay, 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 Afterpay 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

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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