Day: October 16, 2021

2 excellent ASX tech shares tipped for big things

digital screen of bar chart representing asx tech shares

The tech sector is home to a number of companies with strong growth potential.

Two that are highly rated are listed below. Here’s what you need to know about these tech shares:

Adore Beauty Group Limited (ASX: ABY)

The first tech share to consider is Australia’s leading online beauty retailer, Adore Beauty.

Though, calling it just an online beauty retailer is a bit of a disservice as it is so much more. Since launching in 2000, Adore Beauty has evolved into an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 260 brands and 10,800 products.

It has been growing strongly over the last few years and this has continued in FY 2022. Adore Beauty released its first quarter update last week and reported a 25% increase in revenue to $63.8 million. This was underpinned by a 24% jump in active customers to 874,000 and returning customer growth of 63%.

Positively, even when annualised, this is just a fraction of the beauty and personal care (BPC) market in Australia which is estimated to be worth $11.2 billion. Furthermore, it is expected to grow at a 26% CAGR through to 2024.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $6.00 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another ASX tech share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its Nitro Productivity Suite. The Nitro Productivity Suite provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

In FY 2021, Nitro is aiming for annualised recurring revenue (ARR) of between US$39 million and US$42 million. This will be up strongly year on year but still well short of its total addressable market which is estimated to be $28 billion.

The team at UBS are very positive on Nitro. Last week they initiated coverage on the company with a buy rating and $4.70 price target. The broker believes Nitro’s ARR could surpass US$100 million by FY 2024.

The post 2 excellent ASX tech shares tipped for big things appeared first on The Motley Fool Australia.

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

Before you consider Nitro, 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 Nitro 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. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended 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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Could the Oil Search (ASX:OSH) share price hit $5 by the end of 2021?

oil and gas worker checks phone on site in front of oil and gas equipment

The Oil Search Ltd (ASX: OSH) share price has been outperforming the market in 2021.

Since the start of the year, the energy producer’s shares have risen an impressive 20%.

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

Could the Oil Search share price hit $5.00 by the end of the year?

Pleasingly for shareholders, one leading broker believes the Oil Search share price could keep rising from here.

According to a recent note out of Ord Minnett, its analysts have a buy rating and $5.20 price target on its shares.

Based on the current Oil Search share price of $4.52, this implies potential upside of 15% for investors before dividends.

Ord Minnett is also forecasting a dividend of 13.3 cents per share in FY 2022. If we add this into the equation, it will bring the total potential return to ~18%.

All in all, the broker clearly sees the potential for Oil Search shares to be trading at $5.00 or even higher by the end of the year.

Why is it positive on the company?

Ord Minnett has been pleased with the company’s performance in FY 2021. Particularly with its earnings outperformance during the first half and its much stronger than expected free cash flow.

In addition, the broker is very positive on its proposed merger with fellow energy producer Santos Ltd (ASX: STO).

Its analysts think the merger is a good idea and expects it to create value for both sets of shareholders.

For this reason, Ord Minnett also has a buy rating on Santos shares with a price target of $8.05. In fact, Santos is the broker’s top pick in the sector right now.

The post Could the Oil Search (ASX:OSH) share price hit $5 by the end of 2021? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Oil Search right now?

Before you consider Oil Search, 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 Oil Search 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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Could the Flight Centre (ASX:FLT) share price hit $13.50 by Christmas?

A woman smiles as she crosses the tarmac, happy to be boarding a plane at the airport and travelling again.

Could it be possible for that Flight Centre Travel Group Ltd (ASX: FLT) share price to fall to less than $14 before Christmas?

There are plenty of brokers out there that have price targets for Flight Centre shares that are less than the current level.

However, there is one broker that has a particularly negative outlook for the ASX travel share.

What is the Flight Centre share price target?

The broker Ord Minnett has a price target of just $13.72. That implies the broker believes that Flight Centre shares could fall by around 40% over the next 12 months.

It’s not just COVID-19 impacts that the broker is thinking about. Ord Minnett is taking into account how the travel agency industry has changed and is changing. The broker believes that Flight Centre’s margins are going to be impacted and it needs to cut expenses to ensure that its profit isn’t materially hurt.

Despite that, Ord Minnett thinks that Flight Centre is going to return to making profit in FY23 as well as paying a dividend.

The broker has pencilled in a dividend of around $0.14 per share in FY23.

At the current Flight Centre share price, Ord Minnett believes that it’s valued at 48x FY23’s estimated earnings.

However, not all brokers are as negative on Flight Centre. One of the most recent broker ratings is a neutral rating from UBS, with more positivity due to the higher vaccination coverage. The UBS price target on Flight Centre is $18.85.

UBS reckons that Flight Centre shares are valued at 32x FY23’s estimated earnings.

How is the ASX travel share performing?

Over the last two months the Flight Centre share price has risen by around 60%.

In reporting season, the company said that it generated an underlying loss in line with its guidance at $507 million.

However, the business noted that the recovery was/is gaining momentum, particularly in the corporate sector and in the US.

It said that it was achieving month on month revenue growth despite COVID-19 impacts. Corporate total transaction value (TTV) was tracking at 40% of pre-COVID levels globally by the year end. It also experienced a “rapid” leisure and corporate recovery in the US late in the further quarter.

Flight Centre said that it was targeting a return to monthly profitability in both corporate and leisure during FY22.

The company mentioned that thr profitability forecast included the resumption of further international travel, with the potential “material benefit” from the trans-Atlantic reopening.

It was only in the last couple of days that the US has announced that it’s going to open up its borders to vaccinated passengers from dozens of countries, who won’t have to quarantine. Those countries include the UK, India, France, Germany, Italy, Spain and so on.

The US is also opening up its land borders with Canada and Mexico for fully vaccinated foreign nationals.

The post Could the Flight Centre (ASX:FLT) share price hit $13.50 by Christmas? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Flight Centre right now?

Before you consider Flight Centre, 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 Flight Centre 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group 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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Should you buy ANZ (ASX:ANZ) shares in October for the dividend yield?

If you’re an income investor and don’t already have meaningful exposure to the banking sector, then the Australia and New Zealand Banking GrpLtd (ASX: ANZ) dividend could be worth considering.

That’s the view of one of Australia’s leading brokers.

Why might the ANZ dividend be a good option?

According to a recent note out of Bell Potter, its analysts are very positive on the big four bank and expect the ANZ dividend to grow at a decent rate in the coming years.

The broker has pencilled in a fully franked $1.30 per share dividend in FY 2021. After which, it is forecasting increases to $1.40 per share in FY 2022 and then $1.50 per share in FY 2023.

Based on the current ANZ share price of $27.87, this will mean yields of 4.7%, 5%, and 5.4%, respectively, over the three financial years.

But the returns don’t stop at the ANZ dividend. Bell Potter also sees decent upside for the bank’s shares over the next 12 months.

Where is the ANZ share price heading from here?

The note reveals that Bell Potter currently has a buy rating and $31.00 price target on the company’s shares.

Based on where the ANZ share price finished the week, this suggests that there’s potential upside of 11% for investors. And if you add the ANZ dividend into the equation, the total potential return stretches to approximately 16%.

That’s not bad at all considering the ANZ share price is already smashing the market in 2021. Its shares are up an impressive 21% since the start of the year compared to a gain of 10% for the ASX 200.

Fortunately, judging by what Bell Potter is saying, it doesn’t appear to be too late for income investors to pick up shares when the market reopens next week.

The post Should you buy ANZ (ASX:ANZ) shares in October for the dividend yield? appeared first on The Motley Fool Australia.

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

Before you consider ANZ, 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 ANZ 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 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/3DI9k2E