Day: November 5, 2021

Zip (ASX:Z1P) and these ASX tech shares are rated as buys

Three excited business people cheer around a laptop in the office

If you’re looking to add a bit of tech exposure to your portfolio, then you might want to look at the shares listed below.

Here’s why these tech shares could be top options:

Nitro Software Ltd (ASX: NTO)

The first tech share to look at is this fast-growing global document productivity software company. Nitro’s cloud-based software allows organisations to drive better business outcomes through 100% digital document processes and fast, efficient workflows. At the last count, the company had over 2.8 million licensed users and 12,000+ business customers in 155 countries. This helped underpin a 50% increase in its annual recurring revenue during the third quarter.

In response to that update, Bell Potter retained its buy rating and lifted its price target to $4.50.

PointsBet Holdings Ltd (ASX: PBH)

Another tech share to consider is PointsBet. It is a sports wagering operator and iGaming provider offering innovative sports and racing betting products and services via a scalable cloud-based platform. It has been growing at a rapid rate over the last few years thanks to its growing customer base in both the ANZ and US markets. Pleasingly, this positive form is expected to continue, with Goldman Sachs forecasting very strong growth over the coming years as its US expansion gathers pace. This expansion will be supported by its game-changing deal with US sports broadcaster NBCUniversal.

Goldman currently has a buy rating and $12.79 price target on the company’s shares.

Zip Co Ltd (ASX: Z1P)

A final tech share to look at is Zip. Thanks to the ever-increasing popularity of the buy now pay later (BNPL) payment method with consumers and merchants, Zip has been growing at a rapid rate in recent years. Pleasingly, this has continued in FY 2022. Following a strong first quarter, Zip delivered a record month in October. It reported over $770 million in transaction volume for the month, which was a 94% increase on the prior corresponding period. It also annualises at over $9 billion. This is still only a fraction of its global market opportunity.

Shaw and Partners is very bullish on Zip. The broker believes Zip’s shares trade on undemanding multiples. In light of this, its team has a buy rating and lofty $16.10 price target.

The post Zip (ASX:Z1P) and these ASX tech shares are rated as buys 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 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 Pointsbet Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Nitro Software Limited and Pointsbet Holdings 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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Is the Netwealth (ASX:NWL) share price a buy?

Fintech tablet display in 3D

The Netwealth Group Ltd (ASX: NWL) share price is in focus after the fintech business launched a takeover offer for Praemium Ltd (ASX: PPS).

Do analysts think that Netwealth shares are worth looking at with this in mind?

The proposed takeover

Netwealth was offering one new Netwealth share for every 11.96 Praemium shares, plus a cash consideration.

The cash consideration would reflect the net proceeds achieved from the sale process for Praemium’s international operations of more than an attributed value of $50 million less tax and transaction costs.

Based on the closing price of Netwealth shares of $17.94 on 27 October 2021, which was the last trading day before the date of the proposal, the offer was a value of $1.50 for each Praemium share, excluding the international sale consideration.

Netwealth said this offer was a 29% premium to Praemium’s closing price on 27 October 2021.

The fintech said that if the deal went ahead, it is expected to create substantial value for both sets of shareholders, due to the compelling strategic rationale and the “material” cost and revenue synergies.

Netwealth said it would enhance its position as the fastest-growing wealth management platform in Australia, with approximately $16 billion of net flows for the 12 months to 30 September 2021.

The combined group would account for around $72 billion of Australian platform funds under administration and more than $22 billion of non-custodial assets.

The Netwealth share price has edged lower since this announcement, but only by 1.6%.

The Praemium response

Praemium’s initial response was to decline the offer. The board unanimously concluded that the proposal undervalued the business for a few different reasons.

It said that it doesn’t appropriately value the current performance, the near-term trajectory, its market leadership and “superior technology” particularly in managed account and non-custodial portfolios, which would provide “significant benefits” to Netwealth.

Praemium also said the offer doesn’t value its growth momentum, including “very strong” FUA growth in the first quarter. The board also noted that it doesn’t reflect the significant valuation upside available to shareholders considering it’s valued at a discount to industry peers Netwealth and Hub24 Ltd (ASX: HUB). The final point that Praemium noted was that it wasn’t representative of recent transaction premiums in the platform and funds admin space.

The smaller fintech also noted that its share price closed at $1.245 on 1 November 2021, and based on the exchange rate and Netwealth share price, meant the premium was only 17.6%.

Praemium’s board said:

As a strong, rapidly growing independent player in the platform and funds administration industry, Praemium is in a unique position. The board is open to engagement at an appropriate valuation but is mindful that any proposals put forward should appropriately reflect Praemium’s market position and growth potential as well as recent activity in the sector.

Is the Netwealth share price a buy?

Brokers at Macquarie Group Ltd (ASX: MQG) think it is, with a price target of $19. Macquarie thinks buying Praemium would add to Netwealth. Macquarie thinks the fintechs have a good future and the more they can grow the better.

The post Is the Netwealth (ASX:NWL) share price a buy? appeared first on The Motley Fool Australia.

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

Before you consider Netwealth, 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 Netwealth 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 Hub24 Ltd, Netwealth, and Praemium Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Netwealth. The Motley Fool Australia has recommended Hub24 Ltd and Praemium 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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10 top ASX shares to buy in November

With a new month here, now could be an opportune time to consider making some new additions to your portfolio.

To help you on your way, I’ve picked out ten ASX shares which analysts rate highly right now. Here’s why they could be top options in November:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is Australia’s leading online beauty retailer. It recently released its first quarter update and revealed revenue of $63.8 million, up 25% on the prior corresponding period. Even when you annualise this, it is still only a fraction of the Australian beauty and personal care (BPC) market. That is currently estimated to be worth $11.2 billion and growing. This gives Adore Beauty a long runway for growth over the next decade. UBS currently has a buy rating and $6.00 price target.

Altium Limited (ASX: ALU)

Altium is an electronic design software provider behind the Altium 365 and Altium Designer platforms. It also has a number of complementary businesses such as Nexus and Octopart. Combined, the company is in a strong position to benefit greatly from the rapidly growing Internet of Things (IoT) and AI markets. These are expected to underpin strong demand for its Altium Designer software over the next decade. Bell Potter is a fan and has a buy rating and $42.50 price target on its shares.

Appen Ltd (ASX: APX)

Appen is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. It has been tipped to grow strongly over the next decade thanks to the growing importance of machine learning and artificial intelligence for businesses. This is expected to support strong demand for its services. Citi is positive on Appen and has a buy rating and $17.10 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure is one of the world’s leading gaming technology companies. It has a portfolio of world class pokie machines and a growing digital business which has become a significant contributor to its earnings in recent years thanks to the increasing popularity of games such as Raid. The company has also just announced plans to acquire London-listed leading global online gambling software and content supplier, Playtech, for $5 billion. Morgans is positive on the company. It currently has an add rating and $52.50 price target on its shares.

Goodman Group (ASX: GMG)

Goodman Group is a leading integrated commercial and industrial property group. It has been growing at a solid rate over the last decade thanks to the overwhelming success of its strategy. Goodman focuses on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally. This is where demand is strong and transformational changes are driving significant opportunities. Citi believes Goodman is well-placed for growth and has a buy rating and $27.50 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Hipages is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. In FY 2021, Hipages delivered a 22% increase in revenue to $55.8 million. Pleasingly, it has built on this with a 14% increase in first quarter revenue to $14.9 million despite battling lockdowns. This is still only a small portion of its significant addressable market. Goldman Sachs has a buy rating and $4.90 price target on its shares.

Life360 Inc (ASX: 360)

Life360 is the growing technology company behind the eponymous Life360 mobile app. This increasingly popular app offers families useful features such as communications, driver safety, and location sharing. It recently released its third quarter update and revealed the addition of a further 1.5 million monthly active users (MAU) to 33.8 million. This underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) (excluding acquisitions) to US$120.1 million. Bell Potter is a big fan and has a buy rating and $12.50 price target on its shares.

Nanosonics Ltd (ASX: NAN)

Nanosonics is one of the world’s leading infection prevention companies. At present, the company is a one-trick pony with the high quality industry-leading trophon EPR disinfection system for ultrasound probes. However, management is in the process of developing and launching new products. One is the Nanosonics Coris platform. This new platform, which is expected to be launched in calendar year 2023, is for cleaning flexible endoscopes. Morgans is positive on Nanosonics and has an add rating and $6.97 price target on its shares.

ResMed Inc. (ASX: RMD)

ResMed is a sleep treatment-focused medical device company. It has been tipped to grow strongly over the long term thanks to its industry-leading products and massive market opportunity. In respect to the latter, management estimates that there are 1 billion people impacted by sleep apnoea worldwide. However, only ~20% of these sufferers have been diagnosed. Supporting this growth is its wide distribution network and growing software business. Credit Suisse is bullish on ResMed. So much so, it has an outperform rating and $43.00 price target on the company’s shares.

Xero Limited (ASX: XRO)

Xero is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses. It has been growing at a strong rate in recent years thanks to the shift to the cloud and its international expansion. The good news is that Xero still has a significant global market opportunity to grow into over the next decade and beyond. It is partly for this reason that Goldman Sachs is very bullish and has a buy rating and $165.00 price target on its shares.

The post 10 top ASX shares to buy in November appeared first on The Motley Fool Australia.

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

Before you consider Xero, 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 Xero 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. owns shares of and has recommended Altium, Appen Ltd, Hipages Group Holdings Ltd., Life360, Inc., Nanosonics Limited, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Altium, Appen Ltd, Nanosonics Limited, and Xero. The Motley Fool Australia has recommended Adore Beauty Group Limited, Hipages Group Holdings Ltd., and ResMed Inc. 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 top ASX tech shares rated as buys by brokers

a woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.

Brokers are always on the lookout for opportunities, including with leading ASX tech shares.

There are a few businesses in the technology space that are rated as buys that may be able to produce returns over time from here.

Some ASX tech shares have substantial growth plans and may be able to achieve growing profit margins in the coming years.

Here are two of them:

Altium Limited (ASX: ALU)

Altium is one of the world’s leading electronic PCB software businesses. It’s currently rated as a buy by the broker Citi.

The Altium share price has risen by around 54% over the last six months.

A couple of months ago, Altium announced that it had returned to double digit growth in the second half of FY21 when it delivered its FY21 result. The company also said that it has a positive outlook for FY22.

Altium revealed a number of growth metrics in FY21. It saw “strong” growth of annual recurring revenue (ARR) of 29%. Recurring revenue was 65% of the overall revenue, up from 59% in the previous year. The company said that there was strong growth in term-based licenses, which is a positive for future recurring revenue.

Second half continuing business revenue from the ASX tech share increased 16%. There was “strong” Altium 365 adoption with almost 13,000 monthly active users and over 6,000 monthly active accounts. Its overall subscription base rose by 7% to 54,394.

Two of the fastest areas of growth were Octopart and China. Octopart saw revenue growth of 42% to US$27 million, whilst second half Chinese revenue increased 47%.

Vehicles, machines and devices are becoming increasingly technological, with Altium being part of that process.

Altium is expecting its total revenue to increase another 16% to 20% in FY22, with ARR growth of 23% to 27%.

According to Citi, the Altium share price is valued at 69x FY23’s estimated earnings.

Kogan.com Ltd (ASX: KGN)

Kogan is a leading e-commerce ASX share, which is rated as a buy by the broker Credit Suisse. It has a price target of $13.88 on the business.

After some difficulties during FY21, the broker noted that the first quarter of FY22 continued to show that the business is growing quickly in size.

Kogan said that there was growth in its Kogan First memberships, an optimised inventory position, strong growth in Kogan Marketplace and Mighty Ape.

In the first three months of FY22, gross sales increased 23.2% quarter on quarter to 330.5 million. The gross profit also increased by 31.6% quarter on quarter.

Active customers grew 30.7% year on year to 3.35 million for Kogan.com, whilst Mighty Ape finished with 748,000 active customers at 30 September 2021.

The number of Kogan First members grew 171.1% year on year and 64.4% quarter on quarter to 197,000. The growth in customers and members could help profit growth in the future.

Kogan.com has also resolved previous inventory problems that the company had, whilst also closing a number of inefficient overflow warehouses. This reduction in inventory levels led to the ASX tech share “significantly” reducing its warehousing costs, delivering an average variable cost saving of $0.8 million per month in the first quarter of FY22 compared to the fourth quarter of FY21.

According to Credit Suisse, the Kogan share price is valued at 23x FY23’s estimated earnings.

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

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

Before you consider Altium, 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 Altium 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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Altium and Kogan.com 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/3CLiHyF