The Life360 Inc (ASX: 360) share price was one of the best performers on the Australian share market in 2021.

Unfortunately, in 2022 it has been among the worst performers. Since the start of the year, the Life360 share price has lost 21% of its value due to broad weakness in the tech sector.

Is the Life360 share price good value now?

While the weakness in the Life360 share price is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

In fact, if Bell Potter is on the money with its recommendation, there could be some significant upside for investors over the remainder of 2022.

According to a note this week, the broker has retained its buy rating with a trimmed price target of $13.50.

Based on the current Life360 share price of $7.64, this implies potential upside of 77% over the next 12 months.

What did the broker say?

Bell Potter has been running the rule over Life360’s fourth quarter update and liked what it saw.

The broker commented: “Life360 reported a strong 4Q2021 with q-o-q increases of 5% in global monthly active users to 35.5m (vs BP forecast 35.6m), 11% in global paying circles to 1.23m (vs BP forecast 1.15m) and 19% in revenue to US$35.0m (vs BP forecast US$33.5m). The company also met or exceeded all of its key guidance metrics.”

And while the broker has reduced its price target on the Life360 share price, it has only done this out of conservatism and not because it is becoming less bullish.

Its analysts explained: “We have updated each valuation used in the determination of our forecasts for the modest changes in our forecasts as well as recent market movements. We have also decreased the premium applied in the EV/Revenue valuation from 40% to 30% just for conservatism. The net result is a 10% decrease in our PT to $13.50 which is still a material premium to the share price and we maintain our BUY recommendation.”

The post Broker says Life360 (ASX:360) share price has ~80% upside appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. 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

• These two beaten-up ASX shares could be leading opportunities in February 2022 after the recent volatility
• Webjet is expecting to increase profitability as it gets back to pre-COVID scale and captures more market share
• REA Group’s profit and cash flow continues to rise. It’s seeing higher listing volumes and the company is predicting long-term international growth

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The last few weeks have been volatile for the ASX share market. Plenty of stocks have been beaten-up and could be opportunities for investors to consider.

Share prices change all the time. But it’s rare for the market to drop this much in such a short amount of time.

Between the start of 2022 to 27 January, the S&P/ASX 200 Index (ASX: XJO) had fallen around 10%. There was a bit of recovery on Friday, but most ASX shares are still far below where they were December 2021.

These two could have a strong future:

Webjet Limited (ASX: WEB)

Webjet describes itself as a digital travel business, spanning both global consumer markets (through ‘B2C’) and wholesale markets (through ‘B2B’).

WebBeds is the world’s number two player (and fastest-growing) accommodation supplier to the wholesale travel industry.

Webjet is the number one online travel agency (OTA) in Australia and New Zealand. Go-See, previously called Online Republic, is a market leading specialist in providing rental cars and motorhome bookings.

Since the start of the year, the Webjet share price has fallen 13%. In the last three months it has dropped 25% which includes market uncertainty about the impacts of the Omicron COVID-19 variant.

However, the business has plenty of long-term growth plans.

In Webjet’s half-year report it said that WebBeds had returned to profitability and it was on track to be 20% more cost efficient at scale. It also said that there is an increased market opportunity due to the B2C channel expansion, targeting previously untapped domestic markets and increasing North America market penetration.

WebBeds is looking to achieve an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 62.5%.

Webjet points out that competition has decreased as financial pressures impact the industry. WebBeds is targeting $10 billion of total transaction value (TTV) and it’s aiming to reach 14% of the global B2B TTV.

November 2021 TTV was tracking at 63%, though this was before the spread of the Omicron.

REA Group Limited (ASX: REA)

Since the start of 2022, the REA Group share price has fallen 17%. The real estate digital portal has seen a drop along with many other ASX shares.

However, the business is expecting to report growth in the first half of FY22 with a recovery of national listings.

The first quarter of FY22 showed a 35% increase in revenue after broker commissions to $264 million. There was also a 25% increase in EBITDA to $158 million and a rise of free cash flow of 20% to $49 million. That was despite the lockdowns in Sydney and Melbourne.

October national residential listings were up 16% year on year, with an increase in Melbourne of 20% and 29% in Sydney.

The company has also built a portfolio of assets of international digital property platforms. Some of the markets that it now has exposure to includes India, the US, Hong Kong, China, Malaysia, Singapore, Thailand, Vietnam and Indonesia.

However, the company noted that year on year growth rates are expected to slow as it cycles very strong period listing volumes, particularly in the second half, and regulatory measures to slow price inflation which could impact listing volumes.

The post Is February 2022 the time to buy these 2 beaten-up ASX shares? appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and Webjet 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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If you’re a fan of buy and hold investing, then you may want to look at the “champion stocks” listed below.

These are the ASX shares that the team at Bell Potter believe would be great investments over a period of three to five years.

Here’s why these are three of the broker’s champion stocks:

CSL Limited (ASX: CSL)

This leading biotherapeutics company is on the broker’s champion stocks list. Bell Potter is positive on the company due to growing plasma volumes and its burgeoning research and development pipeline.

The broker said: “A leading global company in the development, manufacture, and distribution of plasma therapies as well as non-plasma biotherapeutic products and influenza related products. The global growth in plasma volumes is expected to be around a solid 8% per annum for the foreseeable future and, in addition, the group is planning to launch new products from its very extensive Research and Development portfolio.”

Goodman Group (ASX: GMG)

Another ASX share that makes Bell Potter’s champion stocks list is Goodman. The broker believes it has a very bright future thanks to the favourable outlook for industrial and logistics properties.

Its analysts said: “One of the world’s largest integrated industrial property groups with operations centred around development, management and ownership throughout Australia, New Zealand, Asia, Europe, United Kingdom, North America, and Brazil. The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or on-line retail sales) and the growing middle class in developing countries.”

Netwealth Group Ltd (ASX: NWL)

A final ASX share on the list is Netwealth. Bell Potter believes this investment platform provider will benefit from market share gains and the structural shift that is happening in the industry.

Bell Potter explained: “A specialist investment platform technology provider in Australia that offers investment management solutions to financial intermediaries, who provide financial advice on superannuation and other investments, and self-directed individuals who have chosen not to seek advice. In recent years, the group has been taking market share from the institutional platform providers such as the major banks and other large diversified financial companies. Looking forward, a structural shift within the wealth management sector from large vertically integrated players towards the more independent players should further boost the group’s growth outlook.”

The post 3 ‘champion stocks’ for ASX investors in 2022 appeared first on The Motley Fool Australia.

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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 CSL Ltd. and Netwealth. The Motley Fool Australia owns and has recommended Netwealth. 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

• There are some high-quality ASX tech shares that have been sold-off, which could be opportunities
• Doctor Care Anywhere, a telehealth business, is seeing a strong increase in organic revenue and growing its number of patients
• Volpara is a breast screening healthcare tech company which has a high gross profit margin and it’s growing its subscription revenue

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Some of the most promising ASX tech shares have seen significant falls in recent weeks. February 2022 might be the month to jump on some of these potential opportunities.

Technology can come in all forms. Some provide services through e-commerce, others provide office software, and so on.

But healthcare is also becoming increasingly technological. These two ASX tech shares could be ones to look at in February:

Doctor Care Anywhere Group Plc (ASX: DOC)

Doctor Care Anywhere describes itself as a UK-based telehealth company that connects patients with healthcare providers through its platform. It recently expanded into Australia with an acquisition as well.

The company recently announced how it performed in FY21, being the 12 months to 31 December 2021. Doctor Care Anywhere achieved revenue growth of 115.7% to $46.3 million. Included in that was 114.6% organic revenue growth, achieving and exceeding its guidance of at least 100% growth.

Profitability is increasing at the business. The gross profit margin went up 5.4 percentage points to 35.7% in the fourth quarter of 2021.

The growth rate is increasing. In the fourth quarter, revenue and consultations increased by 35.9% and 22.7%, respectively, compared to the third quarter of 2021. It also reported 50,500 new patients used the service during the last quarter, which was a new record.

It also recently announced a new operating model, which will see it provide multiple options for patients to receive care depending on their clinical requirement. This is expected to yield a “significant improvement” in margins and profitability.

The business says that it’s well-positioned to maintain its progress in 2022. Despite that, the Doctor Care Anywhere share price has fallen 20% in 2022 and 40% over the last six months.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX tech share that provides healthcare software. Specifically, it’s involved in breast screening and increasingly lung cancer screening.

It has built a market share of around a third in the US of women who have at least one Volpara product used on their screening images.

The Volpara share price has fallen by 18% since the start of the year.

However, the company continues to grow at a fast rate. A couple of months ago, Volpara announced its FY22 result which showed a number of interesting statistics. Its gross profit margin remained above 91%, the subscription revenue jumped 35% to NZ$11.8 million and annual recurring revenue (ARR) increased to US$20.4 million, up from US$12.8 million.

Volpara has been working on building relationships in the lung cancer space, which could help it over the long-term, including RevealDx and Riverain Technologies.

The ASX tech share’s average revenue per user (ARPU) continues to grow. It’s looking to grow the ARPU by selling a platform, not just a product, with its suite of products. It’s winning new deals which are on-boarding with an attractive ARPU. It can also upsell to existing customers – with clients that upgrade from old systems, it typically leads to a 200% to 300% increase in recurring revenue.

It’s also on the lookout for acquisition opportunities that can expand its customer reach, skills or products, to help increase ARPU and/or provide Volpara with technology for the future.

The post 2 top ASX tech shares for February 2022 appeared first on The Motley Fool Australia.

More reading

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• Are these 2 ASX tech shares good buys in January?

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 Doctor Care Anywhere Group PLC and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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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