The GQG Partners Inc (ASX: GQG) share price has been a disappointing performer since landing on the ASX boards following the completion of its IPO in October.

For example, although the fund manager’s shares rose 2% to $1.86 on Thursday, it is still down 7% from its listing price of $2.00.

Is the GQG share price weakness a buying opportunity?

The team at Goldman Sachs believe the weakness in the GQG share price since its listing is a buying opportunity.

According to a note, the broker has initiated coverage on the fund manager with a buy rating and $2.45 price target.

Based on the current GQG share price, this implies potential upside of 32% over the next 12 months.

What did Goldman say?

Goldman advised that it is bullish on the GQG share price for a number of reasons. This includes its positive outlook and attractive valuation.

The broker commented: “Our investment case is underpinned by: Solid investment performance, lowest quartile fee offering among global peers, and strong distribution. Coupled with a scalable business model, this has contributed to robust financial outcomes.”

“We see strong alignment between shareholders and staff, and note that i) GQG’s co-founders have the majority of their net wealth invested in GQG and its investment strategies, and ii) over time, the company aims for every one of its employees to be both an equity holder in GQG and have exposure to at least one of GQG’s investment strategies,” it added.

As for its valuation, Goldman sees scope for its shares to rerate to higher multiples.

It explained: “To reflect the weaker organic growth recently, we consider trough levels of NTM EV/EBITDA multiples of its comparable stocks (c.10.4x). If GQG’s one-year performance improves and it is therefore able to maintain its very strong organic growth, we think it could trade up towards the average of NTM EV/EBITDA multiples (13.1x). Applying the midpoint of the above multiples (ie. 11.8x) to our 12m fwd EBITDA forecast and using our GS AUDUSD forecast (0.72), we set our 12m TP at A$2.45 and initiate at Buy.”

The post Goldman Sachs names GQG Partners (ASX:GQG) shares as a buy with 32% upside appeared first on The Motley Fool Australia.

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• ANZ (ASX:ANZ) share price raised to ‘buy’ at Morgan Stanley
• Andromeda (ASX:ADN) share price rocketed 14% today. Here’s why
• Why were Rio Tinto (ASX:RIO) and BHP (ASX:BHP) shares in the green today?
• Here’s why the PointsBet (ASX:PBH) share price stormed 5% higher today

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.

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Key points

• The AnteoTech share price soared again today, taking its gains over the past week to 42%
• Demand for rapid antigen tests is increasing
• The company’s CEO is hitting media headlines this week

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The AnteoTech Ltd (ASX: ADO) share price has been skyrocketing amid momentum for COVID-19 rapid antigen tests.

Shares in the company soared 7.25% on Thursday to close at 37 cents apiece. That’s a 42% gain on last Thursday’s closing price.

Let’s take a look at what may be impacting AnteoTech shares.

What is happening at AnteoTech?

The AnteoTech share price is surging amid the rising demand for rapid antigen tests in Australia. In fact, the company has been hitting media headlines in recent days as it seeks approval for local production.

CEO Derek Thomson told the Courier Mail he has been seeking permission to manufacture the tests for nearly two years. He said:

We could supply millions now, it’s a good volume and it would certainly make a dent in the Queensland need at the moment.

The company has been producing rapid antigen tests in the European market including Spain while it waits for approval from Australia’s Therapeutic Goods Administration.

My Foolish colleague James noted on Friday the company plans to ramp up local production in the near future, and sales in 2022 could rocket due to RAT shortages. The AnteoTech share price jumped on the news.

Speaking on the pending TGA approval, Thomson told the Courier Mail:

We’re supplying them some more information, we’ve continued to do that and we believe that we’re in the final stages of our of our processing.

We would have liked it to go quicker but we understand that they have a responsibility and we’re working with them as best we possibly can.

Thomson also appeared on the Today Show on Thursday morning, where he said he believes the company will get through the TGA approval process “soon”.

Rapid antigen tests have been dominating media headlines in recent weeks, with other Australian companies also awaiting approval on the tests.

Among these are Lumos Diagnostics Holdings Ltd (ASX: LDX) and unlisted Brisbane-based diagnostics developer Ellume.

AnteoTech share price snapshot

The AnteoTech share price has returned 221% in the past year. This year to date, it has gained around 21%, while it has soared almost 95% in the past month.

Meanwhile, the S&P/ASX 200 index (ASX: XJO)’s has returned 8.45% in the past year.

The post AnteoTech (ASX:ADO) share price gains 42% in a week amid RAT race appeared first on The Motley Fool Australia.

More reading

• Why AnteoTech, BrainChip, City Chic, and ResMed shares are charging higher
• Lumos diagnostics (ASX:LDX) share price climbs amid RAT mania
• AnteoTech (ASX:ADO) share price surges amid ambition to join scramble for RATs
• Why Anteotech, Brainchip, RAIZ, and Santos shares are pushing higher
• Are AnteoTech (ASX:ADO) rapid COVID tests available in Australia?

Motley Fool contributor Monica O’Shea 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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Key points

• Morgan Stanley is bullish on the banking sector in 2022
• Analysts at the firm upgraded ANZ to a buy in a note yesterday
• The broker raised its price target by almost 10% to $31 per share
• The ANZ share price has climbed 17% in the last 12 months

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price edged into the green today, finishing 0.07% higher at $28.58.

While there’s been nothing particularly sensitive out of ANZ’s camp today, the team at Morgan Stanley upgraded the bank to a buy in a note yesterday.

Morgan Stanley is bullish on the banking sector in 2022. The broker reckons the ASX banking universe can outperform the benchmark S&P/ASX 200 Index (ASX: XJO), riding on a number of industry-specific tailwinds.

As seen on the chart below, the ANZ share price (blue) has lagged the benchmark index (red) since June last year, leading many to question what’s in store next for the banking giant’s investors.

However, the gap has started to converge, and ANZ is beginning to regain steam once more as we roll into the new year, adding weight to Morgan Stanley’s thesis.

The story is backed by strong inflows into financials since the new year, given their defensive nature and sensitivity to the interest rates cycle.

If economists at Westpac Banking Corp (ASX: WBC) have a crystal ball, the shift in rates will come on faster and stronger from 2022, according to a research note today. The bank is predicting 5 rate hikes from the RBA in 2022-24, in stark contrast to the RBA’s language on the matter.

So why was the ANZ share price raised to a buy?

Analysts at Morgan Stanley are constructive on ASX banking shares like ANZ due to the changing outlook for interest rates from 2022 onwards.

The firm reckons that earlier-than-expected rate hikes from the RBA, coupled with higher fixed rates on mortgage products, will decompress margins throughout the sector.

However, while it remains bullish, the firm cautioned investors on the potential impact higher rates might have on Australian mortgage credit and the housing market. Notably, higher fixed rates mean higher interest payments on home mortgages, meaning less disposable income for those households.

Nevertheless, Morgan Stanley itself is banking that total loan growth in the sector should be higher in FY22, coming off such an anomalous year in 2021.

Alas, the broker raised its ANZ share price target by almost 10% to $31 in its note yesterday and upgraded the stock to a buy while doing so.

Analysts have conviction on the bank given its well-diversified business exposure, improving loan growth outlook, and an equally improved outlook for margins.

The broker is joined by both Bell Potter and Macquarie, who rate ANZ as a buy and each value the company at $30 per share.

Aside from that, Goldman Sachs, Jefferies, and Morgans agree with their investment banking associates and urge clients to buy ANZ on a long-term view.

ANZ share price summary

Unlike some of its banking major colleagues, the ANZ share price fared well in 2021 and has subsequently climbed almost 17% in the last 12 months.

So far this year its shares have climbed almost 4%. As such, the bank is ahead of the ASX 200’s return this year to date, with the broader index falling by 1.37%.

The post ANZ (ASX:ANZ) share price raised to ‘buy’ at Morgan Stanley appeared first on The Motley Fool Australia.

More reading

• Will ASX big four bank ANZ (ASX:ANZ) raise its dividend in 2022?
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• How are ASX bank shares performing today?
• Analysts name 2 ASX dividend shares to buy
• 2 ASX shares with growing fully franked dividends

Motley Fool contributor Zach Bristow 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 Macquarie 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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Key points

• The Andromeda share price surged 13.95% today
• Andromeda’s takeover offer for Minotaur was “overwhelmingly” accepted
• Only a few conditions remain before takeover at the end of January

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The Andromeda Metals Ltd (ASX: ADN) share price is in the news again today following an update on its takeover offer for Minotaur Exploration Ltd (ASX: MEP).

At market close, the Andromeda share price was up 13.95% trading at 24 cents apiece, and the Minotaur share price was up 12.5% trading at 27 cents.

Andomeda’s takeover decision

Today, Andromeda announced that Minotaur shareholders had approved the proposed demerger of its copper and gold assets into its subsidiary Demetallica at its general meeting today.

This means all non-kaolin related assets, including copper, gold and other projects in Queensland and South Australia, will be moved under the umbrella of Demetallica.

Demetallica will then push for an initial public offering (IPO) and apply for ASX listing in April.

The demerger was one of the major conditions of Andromeda’s takeover offer, and leaves just a few other conditions to be addressed before finalising on 7pm 31 January, unless extended or withdrawn.

This includes a including a minimum 90% acceptance of the offer, no “material adverse advent” or “prescribed occurrences”.

The demerger, which was a condition of the takeover offer, was made today at the Minotaur general meeting.

Last days for Minotaur Exploration

Just yesterday, Minotaur released its cash flow and activities update for the quarter ending 31 December, reporting it had $5.61 billion available in funding for future operating activities — a potential draw for Andromeda investors.

Today, Minotaur non-executive chair Roger Higgins addressed shareholders for potentially the last time. He said:

If the demerger resolutions are carried today Minotaur will inevitably become a subsidiary of Andromeda Metals Ltd (ASX: ADN) and, in due course, very likely be removed from the ASX list.

But not everyone will be seeing these new changes for the companies — today, Andromeda chair and non-executive director Rhoderick Grivas announced his resignation due to “family reasons”.

Andromeda share price snapshot

The Andromeda share price dropped by almost 20% in the past 12 months. It hit its 52-week-low of 14 cents in mid September, just before announcing positive HPA test results from its Canadian facility.

The company has a market capitalisation of $534 million and 2.48 billion shares outstanding.

The post Andromeda (ASX:ADN) share price rocketed 14% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Minotaur Resources (ASX:MEP) share price spikes on Andromeda, quarterly update
• Why is the Andromeda Metals (ASX:ADN) share price leaping another 18% today?
• Why has the Andromeda (ASX:ADN) share price rocketed 26% in a month?

Motley Fool contributor Alice de Bruin 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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