Day: August 7, 2022

Up 50% in a month: Why all these fundies predict more greatness for the Telix Pharmaceuticals share price

Three Archer Materials scientists wearing white coats and blue gloves dance together in their lab after making a discoveryThree Archer Materials scientists wearing white coats and blue gloves dance together in their lab after making a discovery

The Telix Pharmaceuticals Ltd (ASX: TLX) share price finished the session on Friday up 0.52% to $7.79. Over the past month, the ASX healthcare share has risen in value by an extraordinary 50.1%.

Contributing to this gain was the investor response to the company’s June quarter report on 21 July.

As my Fool colleague Zach reported, it was the cancer diagnostic and treatment business’s “first commercial quarter”, during which time they launched the Illuccix prostate cancer treatment in the US.

The Telix share price rose by 5.51% on the day of the news.

Fund managers backing Telix share price for growth

Telix treatment technology delivers radiation directly to tumours by putting radiopharmaceuticals into the bloodstream to find and target the cancers.

Illuccix is designed to find prostate cancers in high-risk men before surgery. It is also used to detect prostate-specific antigens (PSAs) in men deemed at risk of the cancer returning after surgery.

According to reporting in the Australian Financial Review (AFR), a bunch of professional fund managers are backing the Telix share price for growth.

They include Antares Capital Broadcap Australian Equities Fund, Platinum Asset Management, Perennial Partners, Fidelity, Acorn Capital, and Wilson Asset Management.

Jefferies, Wilsons, Taylor Collison, and Bell Potter all rate Telix a buy with share price valuations between $8.50 and $10.70.

Maiden profit ahead for Telix

According to the article, Wilsons expects Telix to make a $32.8 million loss in FY23 before a maiden profit of $7.7 million in fiscal 2024.

Healthcare analyst Andrew Hamilton from the Antares Capital Broadcap Australian Equities Fund said:

We still think [Telix] shares have further upside. I think that first [June] quarter of commercial sales in Illuccix show it’s a great product. It entered the market and got very good awareness of PSMA (prostate-specific membrane antigen) imaging. They’ve done a great job on execution, manufacturing, logistics, awareness and the commercial pipeline. For it to all work is a fantastic effort, we expect sales will accelerate.

Platinum Asset Management bought Telix at its initial public offering (IPO) in October 2017. At the time, Telix was selling at a price of 65 cents per share.

Platanium Healthcare analyst Dr Bianca Ogden said:

We’ve always been fans of using imaging as a diagnostic. Because it’s the easiest way to visualise something. We liked the idea when Telix started out to do this properly and consolidate the industry. And we’ve always invested in the targeted radiotherapy industry as a whole.

Is Illuccix approved for prostate cancer therapy in Australia?

Yes — the Therapeutic Goods Administration (TGA) gave commercial approval for Illuccix in November 2021. It’s the first prostate-specific radioactive imaging agent to get approval here.

The Telix share price gained 8.13% on the day of the announcement.

According to the article, Telix has another treatment for prostate cancer. It also has treatments for brain cancer and renal cancer that are in Phase 2 or Phase 3 clinical trial stage.

Hamilton said:

From a valuation perspective the biggest thing in their locker is their prostate cancer therapy drug, TLX 591. That’s just at the start of Phase 3 trials, so it’s obviously a number of years away. But it still has global leadership in an emerging field, so it’s not a one trick pony. It has a deep pipeline, and we think other products coming behind look good.

The Telix share price is down 4.7% in 2022. This compares to an 8.5% dip in the S&P/ASX All Ordinaries Index (ASX: XAO).

The post Up 50% in a month: Why all these fundies predict more greatness for the Telix Pharmaceuticals share price appeared first on The Motley Fool Australia.

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

Before you consider Telix Pharmaceuticals Ltd, 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 Telix Pharmaceuticals Ltd wasn’t one of them.

The online investing service he’s run for over 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.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/qaghSbd

2 excellent ASX growth shares to buy – experts

A woman wearing yellow smiles and drinks coffee while on laptop.

A woman wearing yellow smiles and drinks coffee while on laptop.

The Australian share market is home to a number of companies with strong long term growth potential.

Two that could be particularly well-placed for growth are listed below. Here’s what you need to know about these ASX shares:

Allkem Ltd (ASX: AKE)

The first ASX growth share to look at is lithium miner Allkem. It owns a collection of high-quality assets including Olaroz, Mt Cattlin, and the Sal de Vida brine project.

Thanks to sky high lithium prices, Allkem has delivered significant sales and profit growth in FY 2022. Pleasingly, this looks likely to continue in FY 2023 thanks to ongoing strength in prices, the end of older supply contracts at much lower prices, and increasing production.

And the latter isn’t about to stop any time soon. Management is aiming to triple its production by 2026 and ultimately maintain a 10% share of global supply in the future.

Morgans is very bullish on Allkem. Its analysts have an add rating and $16.72 price target on its shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share that could be in the buy zone is Domino’s.

It is one of the largest pizza chain operators in the world with almost 900 stores across ANZ region, over 1,300 stores in Europe, and over 1,000 stores in Asia.

But management isn’t stopping there. It has set itself a target of 6,650 stores by 2033, which is over double its current footprint. If Domino’s delivers on this and continues delivering same store sales growth, this will bode well for its growth over the next decade.

And while the company is going through a difficult period at the moment, the team at Citi believe investors should be patient and focus on its long term growth opportunity.

Citi has a buy rating and $92.95 price target on Domino’s shares.

The post 2 excellent ASX growth shares to buy – experts 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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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 Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xWHe6wz

Is the VAS dividend yield bigger than an ASX 200 index fund?

An accountant gleefully makes corrections and calculations on his abacus with a pile of papers next to him.

An accountant gleefully makes corrections and calculations on his abacus with a pile of papers next to him.

The Vanguard Australian Shares Index ETF (ASX: VAS) has the distinction of being the most popular exchange-traded fund (ETF) on the ASX. It’s also a rather unique ETF in that it remains the only index fund on the ASX boards that tracks the S&P/ASX 300 Index (ASX: XKO).

The ASX 300 is similar to the far more popular and widely-tracked S&P/ASX 200 Index (ASX: XJO). Many ETFs on the ASX track the ASX 200, but only VAS mirrors the ASX 300.

The ASX 200 and ASX 300 both track the 200 largest shares on the ASX by market capitalisation. But the ASX 300 (you guessed it) adds another 100 of the smaller shares on the ASX. Thus, this gives VAS a slightly larger and more diverse underlying portfolio of ASX shares.

Here at the Fool, we’ve looked at how this has given VAS a performance edge over other ASX 200 index funds before. But today, let’s see how the dividends from the Vanguard Australian Shares Index ETF stack up against an ASX 200 ETF.

VAS vs ASX 200 ETFs: Whose dividends are bigger?

So, like most index funds, VAS paid a dividend distribution every quarter. Its last four distributions have totalled approximately $6.26 in dividend distributions per unit. On the current VAS unit price of $87.13, this gives the ETF a trailing dividend distribution yield of 7.18%.

Let’s now compare that trailing yield to a popular ASX 200 index fund in the iShares Core S&P/ASX 200 ETF (ASX: IOZ).

So, like VAS, IOZ also pays out quarterly distributions. Its last four payments amounted to approximately $1.61 per unit. On the iShares ASX 200 ETF’s last unit price of $28.27, this grants the ETF a trailing yield of 5.7%.

So VAS has come out on top in terms of yield over the past 12 months, at least against IOZ. But let’s look at another ASX 200 ETF, just to make sure.

This time, we’ll turn to the SPDR S&P/ASX 200 ETF (ASX: STW), one of the oldest index funds on the ASX. So again, we have four dividend distributions to tally up, which in this case gives us a total of $4.18 in distribution per unit over the past 12 months.

On the current unit price, this gives us a trailing yield of 6.58% on STW’s last pricing.

The differing yields between these various ETFs come down to a number of different factors. But what is clear is that the Vanguard Australian Shares Index ETF certainly comes out on top when assessing dividend income over the past 12 months.

The post Is the VAS dividend yield bigger than an ASX 200 index fund? 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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Sebastian Bowen 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/QTIn4No

Top brokers name 3 ASX shares to buy next week

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Coles Group Ltd (ASX: COL)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this supermarket giant’s shares to $21.00. Citi has upgraded its earnings forecasts to reflect an expected boost to the company’s sales from inflation. The broker also feels that Coles’ shares are trading on attractive multiples compared to historical averages. The Coles share price ended the week at $18.94.

Objective Corporation Limited (ASX: OCL)

A note out of Goldman Sachs reveals that its analysts have upgraded this software company’s shares to a buy rating with an $18.90 price target. The broker made the move partly on valuation grounds following a de-rating in recent months. In addition, Goldman has increased conviction around Objective’s growth outlook as new products scale. It expects this to support an earnings per share compound annual growth rate of greater than 20% between FY 2022 to FY 2025. The Objective share price was fetching $16.61 at Friday’s close.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Macquarie have retained their outperform rating on this lithium miner’s shares with a trimmed price target of $4.00. The broker has visited the company’s Pilgangoora lithium-tantalum project and was pleased with what it saw. It believes that recent improvements suggest there’s potential for better than expected production at Pilgan and Ngungaju. Outside this, the broker is a big fan due to the significant free cash flow its operations are generating at spot lithium prices. The Pilbara Minerals share price ended the week at $2.87.

The post Top brokers name 3 ASX shares to buy next week 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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

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

from The Motley Fool Australia https://ift.tt/W2HDIKn