Day: August 23, 2022

Brokers name 2 ASX growth shares to buy now

happy investor, share price rise, increase, up

happy investor, share price rise, increase, up

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

Both have been named as buys by brokers and tipped to have major upside potential. Here’s what they are saying about them:

Readytech Holdings Ltd (ASX: RDY)

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

Earlier this month, Readytech released its full year results and revealed a 16.8% year over year increase in revenue to $78.3 million and a 45.5% jump in underlying EBITDA to $27.5 million.

Goldman Sachs was pleased with this in-line result and notes that its “strong organic growth execution builds confidence in medium-term earnings outlook.”

In response to the result, the broker reiterated its buy rating with a trimmed price target of $4.30. Goldman commented:

We are constructive on RDY’s growth outlook given its defensive end-market exposures (government and education represent ~3/4 of FY23E revenue) and see scope for margins to grow from FY23 onwards, aided by transitioning IT Vision’s on-premise customer base to cloud in coming years (generating a 2-3x ARPU uplift).

RDY remains materially undervalued relative to profitable SaaS peers (we estimate >50% discount on growth-adjusted FY24E EV/EBITDA) and is building an impressive track record of organic growth execution which in our view will drive a re-rating over time.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share that could be a top option for investors is Treasury Wine. It is one of the world’s leading wine companies with a portfolio of popular brands including Penfolds, 19 Crimes, and Wolf Blass.

It also recently released its full year results and revealed solid growth across the business. This went down well with analysts at Morgans, which are expecting this strong form to continue in the future.

In response to its result, the broker retained its add rating and lifted its price target to $15.71. The broker commented:

Despite all the external headwinds, TWE’s FY22 result was solid and in line with our forecast and its guidance. Importantly, the 2H demonstrated strong EBITS and NPAT growth (+14.1% and +18.8% on pcp). Despite cost pressures, the foundations are now in place for TWE to deliver strong double digit growth from FY23.

Pleasingly, the benefits of its new divisional model are clearly evident and the Penfolds reallocation strategy has been a success. Trading at a material discount to our valuation and its pre-COVID multiples, we maintain an Add rating with a new price target of $15.71 on this high quality company.

The post Brokers name 2 ASX growth shares to buy now appeared first on The Motley Fool Australia.

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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

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*Returns as of August 4 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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2 ASX mining shares that rocketed between 16% and 108% on Tuesday

Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises todayTwo smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today

The S&P/ASX 200 Materials Index (ASX: XMJ) fell 0.08% on Tuesday, but two ASX mining shares outperformed the index.

The American West Metals Ltd (ASX: AW1) and Magmatic Resources Ltd (ASX: MAG) share prices both soared today.

Let’s take a look at why these ASX mining shares had such a good day.

Magmatic Resources

The Magmatic Resources share price exploded 108% today. Magmatic shares soared on drilling results.

The company reported visible copper sulphide mineralisation intersected a more than 740 metre interval.

Magmatic is exploring its wholly owned Myall project, 25 kilometres southwest of Narromine in New South Wales.

Commenting on the results, managing director Dr Adam McKinnon said:

This is an absolutely stunning result for the first full hole of our drilling program at Myall. It’s difficult to describe the excitement of our team each time we look over the previous day’s core and see an ever-increasing interval of visible sulphide mineralisation.

American West Metals

American West shares soared 16% today amid a “major copper discovery” in Canada.

Drill hole ST22-10 intersected with more than 68 metres of stratiform copper sulphide mineralisation. This was from a 277 metre downhole.

Managing director Dave O’Neill described the discovery, at the company’s Storm Copper Project, as “game changing”.

The importance of this discovery for the project cannot be overstated, as it has hugely positive implications for the copper endowment within the project area.

The post 2 ASX mining shares that rocketed between 16% and 108% on Tuesday 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

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*Returns as of August 4 2022

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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 Scott Phillips.

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The Imugene share price has tumbled 18% since the company’s last update. What’s happening?

A disappointed lab researcher sits in her lab looking at her clipboard with her hand to her face as she worries about the Imugene share price todayA disappointed lab researcher sits in her lab looking at her clipboard with her hand to her face as she worries about the Imugene share price today

The Imugene Limited (ASX: IMU) share price finished the session on Tuesday at 25 cents — down 3.85%.

This is broadly in line with the general market, which also had a poor showing today. The S&P/ASX 200 Health Care Index (ASX: XHJ) fell 1.5% and the S&P/ASX All Ordinaries Index (ASX: XAO) dropped 1.21%.

The last time we heard from Imugene was on 10 August when it gave us an update on a clinical trial. The Imugene share price shot 11.11% higher on the day of the announcement.

Since then, Imugene shares have taken a decidedly downwards trajectory. Let’s take a look.

What’s happening with the Imugene share price?

Imugene shares are now down 17.67% on their closing price on 10 August. What gives? Well, let’s start at the beginning of this mystery.

On 10 August, Imugene shared some exciting news with the ASX. As my colleague Aaron covered, Imugene announced that the first patient from the third cohort of the Checkvacc Phase 1 clinical trial had been dosed.

Checkvacc is an oncolytic virotherapy candidate that aims to activate a patient’s immune system to treat and eradicate cancerous tumours.

ASX investors loved the news and bid up the Imugene share price to 30 cents. But the very next day, the shares went into reverse, losing 3.3%. That sometimes happens after a share price surge. Some investors take the short-term gains they’ve made after big news pushes an ASX share price higher.

But the downhill movement has been continuous — and painful. At 25 cents today, the shares are now lower than they were when the clinical trial announcement was made.

Is Imugene just following the market?

Well, the general market has fallen since 10 August but not as much as Imugene.

Since the closing bell on 10 August, the S&P/ASX 200 Health Care Index (ASX: XHJ) has fallen by 1.44%. The S&P/ASX All Ordinaries Index (ASX: XAO) has dropped 0.55%.

But with no news out of the company since 10 August, we might just have to put this almost 20% dip down to volatility. This isn’t uncommon with healthcare companies that are still trialling products and not yet making a profit. Their share price movements tend to hinge on clinical trial progress and results.

Is the Imugene share price a buy?

Arguably, one of the best times to buy any ASX share is on a share price dip that no one can explain. Or at least, a dip that has nothing to do with the fundamentals of the company itself. That’s called ‘buying the dip‘.

It’s worth noting that earlier this month, my colleague Zach reported that every broker covering Imugene had a buy rating on it, according to Refinitiv Eikon data.

The consensus price target for Imugene shares at the time was 56 cents per share.

Based on today’s closing share price, that means there’s a 124% upside available to ASX investors here.

The Imugene share price is down 42% year to date and down 22% over the past 12 months.

The post The Imugene share price has tumbled 18% since the company’s last update. What’s happening? 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 August 4 2022

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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.

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Why has the Sezzle share price exploded 128% in a month?

Happy man wearing a blue shirt and glasses holding a card and using buy now pay later services to purchase a product on his office computerHappy man wearing a blue shirt and glasses holding a card and using buy now pay later services to purchase a product on his office computer

The Sezzle Inc (ASX: SZL) share price has exploded in the past month.

Since market open on 22 July, the Sezzle share price has soared 128%. However, in today’s trade, the Sezzle share price fell 6.16%. Meanwhile, the Zip Co Ltd (ASX: ZIP) share price also lost 6.12% today.

Let’s take a look at what has been going on with Sezzle.

What is going on?

Sezzle’s share price has lifted amid a positive outlook for the year ahead and improving market sentiment for the buy now, pay later (BNPL) sector.

Between market close on 26 of July and 28 July, the Sezzle share price rocketed 183% alone.

This sharp rise prompted the ASX to issue the company with a price query. In response, Sezzle said:

Investors led the increase in trading activity, because of the sector having been significantly down in recent weeks

Meanwhile, on 29 July, Sezzle provided a second quarter update. As my foolish colleague James reported at the time, underlying merchant sales lifted 1.9% to US$419.1 million. Meanwhile, total income lifted 6.8% to US$29.3 million.

Finally, on 18 August, Sezzle shares received a boost on news of the company’s July business update and plan to return to profit.

Sezzle revealed underlying merchant sales in July had risen 9.5% compared to the previous month to $141.2 million. Sezzle said as of 16 August, it has 64,000 subscribers.

Sezzle also highlighted its progress on cost-saving initiatives. Sezzle plans to end payment processing in India, lower third party spend, pull back Brazil and Europe efforts and reduce the workforce.

The company’s CEO Charlie Youakim, provided optimism that Sezzle would return to profit by the end of the year. He said:

We understand the impact these initiatives have on growth, so teams are moving expeditiously to achieve profitability before refocusing efforts back to growth

July’s results demonstrate the progress and success of our initiatives in Sezzle’s evolution to be a profitable and positive free cash flow business by year end.

Sezzle share price snapshot

The Sezzle share price has descended nearly 90% in the past year, while it has lost 77% year to date.

However, in the past week, Sezzle shares have lost nearly 17%.

Sezzle has a market capitalisation of about $140.7 million based on the current share price.

The post Why has the Sezzle share price exploded 128% in a month? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sezzle Inc right now?

Before you consider Sezzle Inc, 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 Sezzle Inc 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 August 4 2022

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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 Scott Phillips.

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