Day: July 22, 2022

Is the Xero share price heading back over $100?

A guy shrugs his shoulders, not sure which is the right decision.

A guy shrugs his shoulders, not sure which is the right decision.

The Xero Limited (ASX: XRO) share price was a positive performer on Friday.

The cloud accounting platform provider’s shares rose almost 1% to end the week at $91.22.

This latest gain means the Xero share price is now up almost 20% since this time last month.

Though, it is worth noting that its shares are still down materially from their 52-week high of $156.65.

Can the Xero share price climb back beyond $100?

It has been three months since the Xero share price traded above $100.00 but it may not be long until it is beyond this level again.

That’s the view of analysts at Goldman Sachs, who recently reaffirmed their buy rating with a $113.00 price target.

Even after its strong gains over the last 30 days, this still implies potential upside of 24% for investors over the next 12 months.

Why is the broker bullish?

Goldman is bullish on Xero due to its belief that the company can grow its gross profit by an average of 22% per annum between FY 2023 and FY 2025. This is thanks to the stickiness and importance of its software and the low churn levels it is commanding compared to peers. The broker commented:

While noting that the near term remains robust, we do acknowledge the risk of higher churn from SME business challenges and recent price increases. Nevertheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & importance of its software, and lower levels of churn vs. AU overall. We revise FY23-25 GP to reflect FX and higher churn/ARPU growth (price increases).

It is also worth noting that analysts at Citi also see scope for the Xero share price to climb beyond the $100 mark again. Its analysts have a buy rating and $108.00 price target on the company’s shares. Citi commented:

We see Xero’s decision to increase prices in ANZ and UK as an indication of the company’s confidence in its position in its core markets. While the changes would not have a full impact in FY23e, we estimate the changes represent a 8% uplift to group ARPU and represents upside to our ARPU forecasts. An increase in churn is a factor to consider especially given the slowing economic outlook.

The post Is the Xero share price heading back over $100? 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Here are the top 10 ASX 200 shares today

A group of happy office workers throw papers in the air and cheer after seeing the Latrobe Magnesium price skyrocket 38%A group of happy office workers throw papers in the air and cheer after seeing the Latrobe Magnesium price skyrocket 38%

The S&P/ASX 200 Index (ASX: XJO) started and ended in the red on Friday despite trading higher for much of the afternoon. As of the market’s close, the index was 0.04% lower at 6,791.50 points.

Its downfall was driven by the S&P/ASX 200 Utilities Index (ASX: XUJ), which was weighed down by the APA Group (ASX: APA) share price. The stock tumbled on news of the company’s expected final dividend.

The S&P/ASX 200 Energy Index (ASX: XEJ) also slumped 1% amid lower oil prices.

The Brent crude oil price fell 2.9% to US$103.86 a barrel overnight while the US Nymex crude oil price dumped 3.5% to US$96.35 a barrel.

It wasn’t all dire, however. Real estate, financials, and information technology ended the day in the green, with the Zip Co Ltd (ASX: ZIP) share price recording its third consecutive major gain.  

At the end of Friday’s trade, three of the ASX 200’s 11 constituents were in the green. But which companies reported the biggest gains of the day? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s top performing ASX 200 share was none other than Pointsbet Holdings Ltd (ASX: PBH). Find out what’s been going on with the bookmaker’s stock here.

Today’s biggest gains were made by these ASX 200 shares:

ASX-listed company Share price Price change
Pointsbet Holdings Ltd (ASX: PBH) $3.29 16.25%
Zip Co Ltd (ASX: ZIP) $0.88 13.55%
EML Payments Ltd (ASX: EML) $1.195 7.17%
Telix Pharmaceuticals Ltd (ASX: TLX) $7.09 5.51%
Pendal Group Ltd (ASX: PDL) $4.75 4.4%
Pinnacle Investment Management Group Ltd (ASX: PNI) $9.61 4.34%
Megaport Ltd (ASX: MP1) $8.59 4.25%
City Chic Collective Ltd (ASX: CCX) $2.58 3.2%
Cochlear Limited (ASX: COH) $214 3.18%
Australia and New Zealand Banking Group Ltd (ASX: ANZ) $22.59 3.01%

Our top 10 ASX 200 shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear Ltd., EML Payments, MEGAPORT FPO, PINNACLE FPO, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended APA Group, EML Payments, and PINNACLE FPO. The Motley Fool Australia has recommended Cochlear Ltd., MEGAPORT FPO, and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Analysts name 2 stellar ASX growth shares to buy

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads news about the Life360 share price

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads news about the Life360 share price

If you’re searching for growth shares to buy, then it could be worth considering the two listed below.

Here’s why analysts are saying that these ASX growth shares are in the buy zone now:

Readytech Holdings Ltd (ASX: RDY)

The first ASX growth share to look at is enterprise software provider Readytech.

Analysts at Goldman Sachs are very positive on Readytech. This is due to its strong position in defensive market verticals such as higher education and local government. It notes that these are under-served by both large and small enterprise software competitors.

Goldman expects this to allow the company to continue growing organically at a solid rate in the coming years. It also sees opportunities for Readytech to boost its growth with bolt on acquisitions.

The broker commented:

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn.

Goldman Sachs has a buy rating and $4.60 price target on ReadyTech’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share that could be in the buy zone is wine giant Treasury Wine.

Analysts at Morgans are very positive on the company. This is due to its strong brands, attractive valuation, and highly regarded management team.

Morgans explained:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Its analysts currently have an add rating and $13.93 price target on the company’s shares.

The post Analysts name 2 stellar ASX growth shares to buy 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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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 positions in and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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3 popular ASX ETFs for investors to buy

2 women looking at phone

2 women looking at phone

If you’re looking for exchange traded funds (ETFs) to buy, then you might want to look at the three listed below.

Here’s what you need to know about these popular ETFs:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you’re interested in gaining exposure to the Asian tech sector, then the BetaShares Asia Technology Tigers ETF could be worth considering. This ETF tracks the performance of the largest technology companies in Asia (excluding Japan). This means you’ll be buying a slice of tigers such as Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent Holdings. And with the ETF falling almost 25% in 2022, now could be an opportune time to make a long term investment.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Investors that are fans of legendary investor Warren Buffett, may want to consider the VanEck Vectors Morningstar Wide Moat ETF. When Buffett invests, he looks for fairly valued companies with sustainable competitive advantages or moats. VanEck has taken that into account and pulled together around 50 attractively priced companies with moats. These include high quality companies such as Alphabet (Google), Boeing, Campbell Soup, Kellogg Co, Microsoft, Philip Morris, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

If you’re looking for a way to diversify your portfolio, then the Vanguard MSCI Index International Shares ETF could be the one to do this with. This popular ETF provides investors with easy access to somewhere in the region of 1,500 of the world’s largest listed companies. This provides significant diversity and also allows investors to take part in the long term growth potential of international economies. Among the companies that you’ll be owning a slice of are giants such as Amazon, Apple, Nestle, Nvidia, Procter & Gamble, Tesla, and Visa.

The post 3 popular ASX ETFs for investors to buy 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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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 positions in and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF, VanEck Vectors Morningstar Wide Moat ETF, and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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