Day: October 8, 2021

2 ASX shares that are rated as buys by multiple brokers

ASX shares Business man marking buy on board and underlining it

Brokers are always on the search for ASX share opportunities that may be good ideas to consider.

Businesses are regularly updating the market and conditions are changing. Add in that fact that share prices are changing as well and investors can get the chance to regularly find potential options in different areas.

The two businesses in this article are ones that are liked by multiple brokers:

Monash IVF Group Ltd (ASX: MVF)

Monash IVF describes itself as a leading provider of assisted reproductive services and specialist women’s imaging and diagnostic services in Australia and Malaysia. It is a leading player in the development of new technology in the sector.

Over the last year the Monash IVF share price has risen by around 45%. However, brokers still think that the ASX share is an opportunity.

It’s currently rated by at least three brokers, including Morgans, which has a price target of $1.09 on the business. That suggests the Monash IVF share price could rise by more than 15% over the next 12 months, if the broker is right.

Morgans reckons that Medicare data shows there’s a good level of demand for reproductive services that could mean FY23 is promising.

On Morgans’ numbers, Monash IVF is valued at 13x FY23’s estimated earnings. It could pay a grossed-up dividend yield of 7.4%.

In FY21 the business generated revenue growth of 26.3% to $183.6 million, with Australian stimulated cycles up 36.6% (with Australian stimulated cycle growth of 36.6% and 0.6% market share growth). Ultrasound scan volumes increased 12.9% to 10,623 scans.

Monash IVF experienced rising profitability across the business. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 37.1% to $47.7 million and adjusted net profit after tax (NPAT) went up 61.5% to $23.3 million – this beat the profit guidance of $21 million to $23 million. It also generated free cashflow of $32.8 million.

The ASX share itself said there has been a fundamental shift as a result of the pandemic, changing people to focus on family, health and wellbeing, with a re-direction towards family extension.

Steadfast Group Ltd (ASX: SDF)

Steadfast describes itself as the largest general insurance broking network and the largest underwriting agency group in Australasia. It provides services to broker businesses across Australia, New Zealand, Asia and London. The ASX share also operates as a co-owner and consolidator through its equity interests in a number of broker businesses, underwriting agencies and other businesses.

It also has a stake in unisonSteadfast, a global general insurance broker network with 264 brokers in 140 countries.

Steadfast is currently rated as a buy by at least three brokers, including Macquarie Group Ltd (ASX: MQG) which has a price target on the business of $5.30. Based on Macquarie’s estimate, Steadfast is valued at 21x FY23’s estimated earnings. It’s expected to pay a grossed-up dividend yield of 4.1% for FY23.

The ASX share recently announced its FY21 result and also completed an acquisition.

It has bought Coverforce, one of the largest privately owned insurance brokers, which is predominately focused on the small and medium enterprise sector. The acquisition price was $411.5 million, funded with a capital raising. Management said this was expected to leverage the expertise and skills across both platforms, whilst also benefiting from increased scale.

In FY21, it generated revenue growth of 8.9% to $899.9 million, whilst underlying net profit surged 20.2% to $130.7 million. This allowed the business to grow its total dividend by 18.8% to 11.4 cents per share.

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

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

Before you consider Steadfast, 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 Steadfast 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 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 Steadfast Group Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Steadfast Group 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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Here’s what happened to the CSL (ASX:CSL) share price in the FY22 first quarter

Three healthcare workers look and point at at medical image

Here at the Motley Fool, we’ve been checking out how some of the ASX 200’s blue-chip shares have performed in the most recent quarter.

In Australia, we run on a July-June financial year. That means the first quarter of said financial year (1 July – 30 September) has just wrapped up. So today, we’re looking at the CSL Limited (ASX: CSL) share price, and how it performed over this period.

CSL is one of the largest shares in the S&P/ASX 200 Index (ASX: XJO). It was actually the largest share for a while last year, pipping Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). As it stands today, CSL is the ASX 200’s No. 2 share, recently overtaking BHP, which has been suffering due to falling iron ore prices.

CSL used to be known as one of the ASX’s top growth shares. Its share price exploded over 2017, 2018, and 2019, but has been struggling more recently in the shadow of the pandemic.

So how did CSL shares fare over this most recent quarter?

CSL outperforms ASX 200 in FY22 first quarter

CSL shares started on 1 July at a price of $285.19. They finished up at $293.40 on 30 September. That means the CSL share price appreciated by around 2.88% over the quarter. That’s a fair bit above what the ASX 200 managed — an increase of roughly 0.26%.

As it stands today, the CSL share price last traded at $290.46 as of Friday’s close (up 0.83%). The company is up 1.92% year to date in 2021.

However, it’s still down around 1.65% over the past 12 months, and close to 14% from the company’s all-time high, which it hit way back in February 2020. Even so, the company is still up by about 175% over the past 5 years.

Could CSL shares be a buy right now?

With the quarter CSL just had, and its distance from its all-time high, many an investor may be wondering if the company might be a buy today. Well, as my Fool colleague Tristan covered last week, there are a couple of brokers who think it might be.

Credit Suisse is one such broker. It currently rates CSL shares with a 12-month share price target of $315, albeit with a ‘neutral’ rating. That implies a potential upside of roughly 8% from here. Credit Suisse still reckons CSL can grow its profits, even if competitive threats are rising for the company.

At CSL’s last share price of $290.46, the company has a market capitalisation of $131.26 billion, a price-to-earnings (P/E) ratio of 40.64, and a dividend yield of 1.01%.

The post Here’s what happened to the CSL (ASX:CSL) share price in the FY22 first quarter appeared first on The Motley Fool Australia.

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

Before you consider CSL, 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 CSL 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 Sebastian Bowen 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 CSL Ltd. 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.

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3 fantastic ASX growth shares to buy

Big green letters spell growth, indicating share price movements for ASX growth shares

If you’re a fan of growth shares like I am, then you may want to look closely at the three shares listed below.

Here’s why these could be growth shares to buy:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider. The Hipages platform connects consumers with over 34,000 trusted tradies (and growing) across Australia. In FY 2021, the company reported a 12% increase in job volumes to 1.53 million and a 22% increase in full year revenue to $55.8 million. This is still only a fraction of its total addressable market which is estimated to be $110 billion across the residential and commercial sectors.

Goldman Sachs is very bullish on its growth prospects. It currently has a buy rating and $4.35 price target on its shares.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX growth share to look at is PointsBet. It is a sports betting and iGaming provider with operations in the ANZ and US markets. Like Hipages, PointsBet was on form again in FY 2021. For the 12 months ended 30 June, it reported a 228% increase in full year turnover to $3,781.4 million. This was driven by a 117% increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321. More of the same is expected in FY 2022 thanks to the growing popularity of mobile sports betting, innovative products, and its continued US expansion.

Goldman Sachs is also very positive on PointsBet due to its massive opportunity in the US market. The broker has a buy rating and $14.75 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

A final growth share to consider is Temple & Webster. Australia’s leading online furniture and homewares retailer was on form again in FY 2021 and continued its meteoric growth. For the 12 months, the company reported a 62% year on year increase in customer numbers to 778,000. Combined with increased repeat purchases, this underpinned an 85% increase in revenue to $326.3 million. Positively, Temple & Webster still has a long runway for growth over the next decade. This is due to increasing online penetration rates and its leadership position online. The company estimates that in 2020 just 7% to 9% of category sales were made online. This compares to 25.3% in the US in 2020.

The team at Morgan Stanley are very positive on the company’s outlook. Its analysts currently have an overweight rating and $16.00 price target on its shares.

The post 3 fantastic ASX growth 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 Hipages Group Holdings Ltd., Pointsbet Holdings Ltd, and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Hipages Group Holdings Ltd., Pointsbet Holdings Ltd, and 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.

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2 ASX shares that could be worth researching this weekend

Male investor holds a microscope to his eye to represent scrutiny of Wesfarmers share price

This weekend could be a good time to research some ASX shares that are currently unloved by the market.

Share prices are always changing and this can open up opportunities for investors to find value ideas.

However, finding companies with longer-term growth plans could make these ASX shares potential opportunities:

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the largest iron ore miners in the world, but it’s quite a bit smaller than it used to be. The Fortescue share price has fallen by around 46% since the peak in late July 2021.

However, commodities are often cyclical and a lower price of both the resource (iron ore) and the company could make it something to consider.

Indeed, the brokers at Macquarie Group Ltd (ASX: MQG) currently (and recently) rated Fortescue as a buy with a price target of $21. That suggests a potential upside of almost 50% over the next 12 months, if the analysts end up being right.

Macquarie thinks that lower capex will help the ASX share even if iron ore prices are depressed. It also thinks that Fortescue Future Industries (FFI) could be a helpful factor for Fortescue. FFI is the division that is looking to enable Fortescue to become a green miner and it also has longer-term goals of helping other industries become greener as well.

On Macquarie’s numbers, Fortescue is valued at 8x FY23’s estimated earnings with a projected FY23 grossed-up dividend yield of 14%.

Accent Group Ltd (ASX: AX1)

Accent is a market leader when it comes to shoe retailing in Australia and New Zealand.

It sells through a number of different brands in the domestic market including The Athlete’s Foot, the Glue Store, Pivot, CAT, Platypus, Skechers, VANS, Trybe and Timberland.

In FY21, the company demonstrated operating leverage across the different profit lines of the business. Whilst total sales increased 19.9% to $1.14 billion, earnings before interest and tax (EBIT) grew 32.1% to $124.9 million and net profit after tax (NPAT) rose 38.6% to $76.9 million.

The ASX share is rapidly expanding its online sales in this era of elevated e-commerce. Total digital sales increased 48.5% to $209.9 million, representing 20.9% of retail sales.

A growing store network is helping expand its potential reach to customers. In FY21 it added 90 new stores, whilst closing seven where rent outcomes could not be achieved. Management said that new stores continue to perform strongly on more favourable rents than the existing portfolio.

Current COVID-19 restrictions are impacting the company’s sales, but it has plans to open more stores and grow online sales. Digital sales were up 66.7% in the first seven weeks of FY22, though total sales were down 16%.

Over the long-term, it wants to grow its earnings per share (EPS) at a compound rate of at least 10%.

According to Commsec, the Accent share price is valued at 14x FY23’s estimated earnings with a grossed-up dividend yield of 7.3%.

The post 2 ASX shares that could be worth researching this weekend appeared first on The Motley Fool Australia.

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

Before you consider Fortescue, 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 Fortescue 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 owns shares of Fortescue Metals Group Limited. 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 Macquarie Group Limited. 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.

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