Day: January 7, 2022

These 2 ASX fintech shares are delivering rapid growth. Are they buys?

Hand pushing the display of Fintech program

Financial technology companies, also known as fintech ASX shares, have been demonstrating rapid growth. But, simply growing quickly may not be enough for them to be labelled as opportunities. Are they good value buys?

There are a variety of functions served by different fintechs. Some of them provide platform services for clients and their advisers to monitor, report and choose investments.

These are two of the biggest and fastest growing businesses in the Australian sector:

Netwealth Group Ltd (ASX: NWL)

Netwealth was the fastest growing platform in the industry in both percentage and absolute terms in FY21. It’s expecting to take further market share in the years ahead.

The fintech points out that big four banks are exiting, or have already exited, financial advice and the largest platforms have experienced long-term and major outflows, such as AMP Limited (ASX: AMP).

The changing financial advice landscape is leading to the establishment of new independent advice groups, while other formerly aligned advisors move to existing independent advice groups. Netwealth is being provided with “significant new and substantial opportunities.”

Growth is coming through in the quarterly numbers that the fintech ASX share is revealing to the market each quarter.

Funds under administration (FUA) at 30 September 2021 was $52 billion, a 10.2% increase quarter on quarter and a 52.7% increase year on year. FUA net inflows for the last quarter were $4 billion, an increase of 111% compared to last year.

Credit Suisse currently rates Netwealth as a buy, with a price target of $17.80. It also thinks that an acquisition of Praemium Ltd (ASX: PPS) could be compelling.

Hub24 Ltd (ASX: HUB)

Hub24 is another fintech ASX share that is benefiting from the exit of the major banks and the difficulties from other large competitors.

It is a competitor to Netwealth and is also growing very quickly. In the three months to September 2021, Hub24’s FUA at 30 September 2021 had increased to $63.2 billion. Platform FYA of $45.4 billion was an increase of 9.5% quarter on quarter and 139% year on year.

In recent times, Hub24 decided to launch a takeover of Class Ltd (ASX: CL1), a cloud accounting software provider. Hub24 is going to pay $0.125 cash per Class share plus 1 Hub24 share for each 11 Class shares.

The idea behind this acquisition is that it will accelerate Hub24’s platform of the future strategy, giving it further strength to be a leading provider of integrated platforms, technology and data solutions for financial professionals and their clients. The combined business is expected to provide a competitive advantage and diversification of revenue for both companies.

Hub24 said it was expecting this acquisition to add at least 8% to earnings per share (EPS), with cost synergies of approximately $2 million per annum.

Credit Suisse also rates Hub24 as a buy as well, but with a lot more upside. The broker’s price target for the Hub24 share price is $36.50 – that’s around 40% higher than where it is today.

On the broker’s numbers, the Hub24 share price is valued at 46x FY23’s estimated earnings.

The post These 2 ASX fintech shares are delivering rapid growth. Are they buys? 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

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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 and has recommended Hub24 Ltd, Netwealth, and Praemium Limited. The Motley Fool Australia owns and has recommended Class 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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The MGC Pharmaceuticals (ASX:MXC) share price soared 20% today. Here’s why

Lab worker puts hands in the air and dances around

The MGC Pharmaceuticals Ltd (ASX: MXC) share price smoked the market today. This comes after the company provided investors with a positive update regarding its clinically tested nutritional supplement, ArtemiC Rescue.

At the closing bell, the cannabis company’s shares finished up 19.51% at 4.9 cents apiece.

What did MGC Pharma announce?

Investors are pushing up the MGC Pharmaceuticals share price following the news the company has expanded its sales base.

In the release, MGC Pharma advised it has secured an import approval permit for ArtemiC Rescue by Indian regulators.

This enables the importation, distribution, marketing, and sales of ArtemiC Rescue in India, generating the company a new revenue stream.

A small trial batch had been previously sent for proof of concept with its local partner, Carino Water Solutions & Energy.

The sample passed all the required regulatory hurdles and was granted a Food Safety and Standards Authority of India licence. Additionally, it also cleared Indian Customs’ import requirements, resulting in the approval for the sale of ArtemiC Rescue across India.

Gaining authorisation to the Indian market is a milestone given it has the world’s second-largest population.

ArtemiC Rescue has been clinically demonstrated to alleviate moderate symptoms for patients suffering from COVID-19.

MGC Pharma noted the approvals are a major step forward in the pathway for global sales of ArtemiC Rescue.

Furthermore, the company stated it is making progress on the long-term development of its investigational medicinal product, CimetrA.

An application for Emergency Use Authorisation in India as well as other national regulatory and medical agencies are underway. This includes seeking approval from the United States Food and Drug Administration (FDA) to treat patients in the United States.

What did management say?

Commenting on the news driving up the MGC Pharmaceuticals share price, co-founder and managing director Roby Zomer said:

We are proud of achieving the milestone of being granted Indian import and distribution approval for of ArtemiC Rescue, and are pleased to have the opportunity to alleviate the symptoms of COVID-19 in one of the largest populated countries in the world.

Whilst the virus continues to mutate, as we have seen with Omicron, MGC Pharma is well placed to offer a solution on a worldwide scale to ease the pressure on national healthcare systems and aid the economic recovery of jurisdictions who have been widely affected by the pandemic.

About the MGC Pharma share price

In the past 12 months, the MGC Pharmaceuticals share price has accelerated by almost 90%. However, most of those gains came in the early part of 2021, before the company’s shares moved sideways.

On valuation grounds, MGC Pharma has a market capitalisation of roughly $132.23 million, with more than 2.70 billion shares outstanding.

The post The MGC Pharmaceuticals (ASX:MXC) share price soared 20% today. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in MGC Pharmaceuticals right now?

Before you consider MGC Pharmaceuticals, 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 MGC Pharmaceuticals 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 Aaron Teboneras 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.

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What brokers are saying about the Treasury Wine (ASX:TWE) share price

A happy couple drinking red wine in a vineyard.

The Treasury Wine Estates Ltd (ASX: TWE) share price has been one of the best performers on the ASX 50 over the last 12 months.

During the period, the wine company’s shares have risen 36%.

Where next for the Treasury Wine share price?

Given the strong performance by the Treasury Wine share price, investors may be wondering what’s next.

The good news is that a couple of leading brokers still believe there’s room for it to go higher from here.

For example, the team at Citi currently have a buy rating and $13.80 price target on the company’s shares. This implies potential upside of 11% over the next 12 months.

In late December, Citi commented: “We attended the GFA 4Q21 update early today, which revealed on-premise and cellar door wine channels in the US are recovering, consistent with recent feedback from [rival] Duckhorn. This is a tailwind for Treasury Americas noting on-premise and cellar door are high margin channels contributing 19% of its NSR.”

In light of the above, the broker is forecasting Treasury Americas first half earnings growth of 19% over the prior corresponding period.

Who else is bullish?

Another broker that is bullish on the Treasury Wine share price is Morgans. It currently has an add rating and $14.06 price target on its shares. This implies potential upside of 13% for investors in 2022.

While Morgans acknowledges that there are risks with its exit from China, it remains very positive on the future.

Morgans commented: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However once it comps China earnings, we expect TWE to deliver strong earnings growth from the 2H22 onwards. Organic growth will be supplemented by M&A.”

In respect to the latter, the broker was pleased with the Frank Family Vineyards acquisition. Morgans sees it as a strategically important transaction.

It explained: “We view TWE’s recent acquisition of Napa Valley luxury wine business, Frank Family Vineyards (FFV) as strategically important. This high margin business should see TWE achieve its US margin target two years earlier than planned.”

Overall, the Treasury Wine share price could be destined to have another strong year if these brokers are on the money.

The post What brokers are saying about the Treasury Wine (ASX:TWE) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Treasury Wine right now?

Before you consider Treasury Wine, 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 Treasury Wine 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 recommended Treasury Wine Estates 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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3 top ASX 200 shares to buy in January

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how the ASX 200 works

Investors that are looking for some new shares to buy in January may want to look at the ones listed below.

These three ASX shares may be from very different areas of the market but one thing they have in common is that they have been tipped to climb higher from here. They are as follows:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. Aristocrat 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. That latter is being driven by the increasing popularity of games such as Raid. The company is also in the process of acquiring London-listed leading global online gambling software and content supplier, Playtech, for $5 billion. All in all, this has analysts tipping Aristocrat to continue its strong growth in the coming years.

Morgans is positive on the company. It currently has an add rating and $52.00 price target on its shares.

Goodman Group (ASX: GMG)

Another ASX share that could be in the buy zone is Goodman. It is a global integrated commercial and industrial property company with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. Goodman has a world class portfolio of properties which have exposure to key growth markets such as ecommerce and logistics. Thanks to strong demand for these properties, Goodman has been growing at a rapid rate over the last decade and has been tipped to continue doing so in the future.

Citi is very positive on Goodman. Its analysts currently have a buy rating and $27.50 price target on its shares.

Nanosonics Ltd (ASX: NAN)

A final ASX share to look at is Nanosonics. It is one of the world’s leading infection prevention companies. At present, Nanosonics is best known for its industry-leading trophon EPR disinfection system for ultrasound probes. However, management is in the process of expanding its portfolio with several new products. One of these is the Nanosonics Coris platform. This new platform, which is expected to be launched in calendar year 2023, is for cleaning flexible endoscopes. This could be an even bigger market than ultrasound probe disinfection.

Morgans is also bullish on Nanosonics. Its analysts have an add rating and $6.97 price target on its shares.

The post 3 top ASX 200 shares to buy in January 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 and has recommended Nanosonics Limited. The Motley Fool Australia owns and has recommended Nanosonics 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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