Day: December 8, 2021

Goldman Sachs loves these ASX tech shares

A boy wearing a virtual reality headset opens his arms in wonder

If you’re a fan of tech shares, then you may want to look closely at the two listed below.

Both shares are rated highly by the team at Goldman Sachs. Here’s what the broker thinks about them:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX tech share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with over 30,000 trusted tradies.

Goldman Sachs is very bullish on Hipages’ growth prospects. As a result, it currently has a buy rating and $4.95 price target on its shares.

The broker commented: “In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries. There is a meaningful growth runway for HPG from here: it currently captures only 2.4% of industry GMV; of the GMV it does service, the take rate is low compared to other vertical marketplaces. We forecast 22% revenue CAGR from FY21-FY24E and despite near term reinvestment generating a flat margin profile over our forecast period, we expect solid operating leverage over the long term with our terminal year (FY31E) EBITDA margin reaching 46%.”

PointsBet Holdings Ltd (ASX: PBH)

Another ASX tech share to look at is PointsBet. It is a sports betting and iGaming provider with operations in the ANZ and US markets. At the end of FY 2021, the company had grown its active clients to 196,585 in Australia and 159,321 in the US.

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

It commented: “Overall we remain positive on PBH, with our thesis underpinned by i) PBH’s leverage to the burgeoning US Sports Betting and iGaming market, which we forecast to be a >US$50 bn TAM opportunity at maturity, ii) our view that PBH remains well-placed to capitalise given its in-house tech stack, iii) upside risk to long-run sustainable margins in Aus and the US, and iv) scalability benefits ahead from NBCUniversal leads and broader coverage from state roll outs.”

The post Goldman Sachs loves these ASX tech shares 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. and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Hipages Group Holdings Ltd. 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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Why the IAG (ASX:IAG) share price could be cheap for patient investors

A set of scales with a bag of money balanced against a timer, indicating growth versus value shares

The Insurance Australia Group Ltd (ASX: IAG) share price was on form on Wednesday.

The insurance giant’s shares ended the day almost 3% higher at $4.48.

However, despite this gain, the IAG share price is still down a disappointing 5% in 2021.

Is the IAG share price in the buy zone?

While the IAG share price performance this year has been disappointing, analysts at Morgans appear to believe this could be a buying opportunity.

In response to the company’s strategy update this week, the broker has put an add rating and $5.31 price target on its shares.

Based on the current IAG share price, this implies potential upside of 18.5% over the next 12 months. And with Morgans forecasting an 18.2 cents per share dividend in FY 2022, this 4% yield stretches the total potential return to 22.5%.

What did the broker say?

Morgans appears pleased that IAG held firm with its medium term targets at its strategy event.

The broker commented: “IAG has held a business update focusing on its 5 year strategy. Medium term targets remain unchanged, e.g. targeting a cash ROE of 12%-13%, an insurance margin of 15%-17% and a growth profile. IAG’s FY22 guidance for a 10%-12% reported insurance margin and low single-digit GWP growth was also re-affirmed.”

And while Morgans has a few nagging doubts, it was largely pleased with its strategy.

It explained: “IAG’s overall strategy sounds logical, although history shows it is one thing improving margins in IIA and another thing being able to maintain them. We are probably most sceptical on whether IAG can grow customer numbers by 1m over 5 years as planned, noting IAG has been losing share in personal lines in recent times. However, positively, it does appear that IAG has already made a significant start on executing its plans in FY22.”

Overall, the broker believes the IAG share price is cheap for patient investors.

Morgans concluded: “We believe for the patient investor the stock is cheap trading on ~13x FY23F earnings, and we expect continuing insurance price increases, combined with management’s strategy to improve performance, to drive improved profitability over time. ADD maintained.”

The post Why the IAG (ASX:IAG) share price could be cheap for patient investors appeared first on The Motley Fool Australia.

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

Before you consider IAG, 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 IAG 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 no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia 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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KGL Resources (ASX:KGL) share price rockets 34% on copper update

Businessman taking off in rocket-fuelled office chair

The KGL Resources Ltd (ASX: KGL) share price soared 34% after the company revealed record copper results.

Shares in the mineral exploration company were swapping hands at 64.5 cents at market close, up 34.38%.

KGL Resources is focused on exploring and developing the Jervois Base Metal Project in the Northern Territory.

Record results

In today’s announcement, KGL Resources reported a mammoth assay of 61.4% copper within the Rockface diamond drill hole located at the Jervois project.

The miner said this percentage was within an intercept of 20.5% copper and 302 grams per tonne of silver across 4.21 metres.

The company also revealed it has discovered two new massive sulphide deposits.

In total, six drill intercepts have been found to contain massive sulphides across a distance of more than 160m. Mass sulphides are discoveries that could be rich in metal including copper.

As previously reported by Motley Fool Australia, the KGL Resources share price soared to a 5-month high in November on the back of initial assay results from the Rockface drill hole.

The company will continue drilling at Rockface and assessing the results.

Management comment

Commenting on the copper update, KGL managing director Simon Finnis said:

The new record copper assay from hole D6 at Rockface is extraordinary. Mineralogically, it represents 97% pure bornite and confirms the previous visual estimate.

More importantly, together with previous results and the new visual mineral intersections announced here, they demonstrate that the high-grade shoot of massive sulphides has significant dimensions and grades that bode
well for the future.

SKGL Resources share price snapshot

In the past 12 months, the KGL share price has soared more than 124%. The company’s share price reached a 52-week high of 84.5 cents in April. The yearly low was 25 cents in December last year.

KGL Resources commands a market capitalisation of roughly $253 million at the time of writing.

The post KGL Resources (ASX:KGL) share price rockets 34% on copper update appeared first on The Motley Fool Australia.

Should you invest $1,000 in KGL Resources right now?

Before you consider KGL Resources, 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 KGL Resources 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. 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.

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What happened with the Pure Hydrogen (ASX:PH2) share price today?

A boy stands in still ankle-deep water brandishing a bow and arrow.

The Pure Hydrogen Corporation Ltd (ASX: PH2) share price finished flat today following an investment update.

After hitting a 59.5 cent high in early trading, shares in the hydrogen company had retreated to their opening price of 52 cents apiece by the close of trade this afternoon.

Pure Hydrogen is intent on developing clean energy and tapping into the net-zero emissions market.

What did Pure Hydrogen announce today?

In today’s update, Pure Hydrogen provided an investment summary of its fuel cell technology, hydrogen operations and fuel cell mobility.

This follows the Pure Hydrogen shares surging to incredible highs yesterday, finishing the day up 22.89% on the previous close.

To recap, Pure Hydrogen advised the market yesterday it had released several hydrogen fuel cell power generation units to the market in partnership with H2X Global Limited.

In today’s announcement, Pure Hydrogen predicted demand for Hydrogen could increase 10-fold by 2050.

Hydrogen, it explained, was the no-emissions replacement fuel for diesel.

The company predicted global demand for hydrogen would top 500 million tonnes by 2050.

With this in mind, Pure Hydrogen International plans to develop four large scare hydrogen plants on the east coast of Australia — in Gladstone, Mackay, Newcastle and Port Anthony.

Pure Hydrogen share price snapshot

The Pure Hydrogen share price has rocketed a whopping 526.5% in the past 12 months and is up almost 491% this year to date. The range between its 52-week high and low is extreme: from as low as 8 cents per share to as high as 83 cents apiece.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 11% in the past year.

Based on its current share price, Pure Hydrogen commands a market capitalisation of roughly $176 million.

The post What happened with the Pure Hydrogen (ASX:PH2) share price today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pure Hydrogen right now?

Before you consider Pure Hydrogen, 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 Pure Hydrogen 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. 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.

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