If you’re looking for some shares to buy post-earnings season, then you may want to check out the two listed below.

The team at Goldman Sachs believe these shares are buys after posting solid but under-appreciated results last month. Here’s what the broker is saying:

REA Group Limited (ASX: REA)

Goldman feels that the market under-appreciated the strength of this property listings company’s results last month and has reiterated its conviction buy rating with a $164.00 price target.

Based on the current REA share price, this implies potential upside of 32% for investors over the next 12 months. Goldman commented:

Shares are trading back in-line with pre-result levels, despite having a solid FY22 result with core Australia EBITDA +2% vs. GSe, and outlook commentary that was very positive, particularly around expectations for delivering sustained double digit yield growth through the cycle, including in FY23E.

We sit +2% vs. consensus NPAT in FY23, and believe the market is still being too conservative on the pricing power of REA, which we believe is well-placed to deliver on its targets of double digit yield growth. In FY23 this will be driven by 6% price rises and strong uptake of Premiere Plus and Premiere All late in the prior year, while these trends will continue into FY24, and will be supported by a more material price rise that could potentially exceed 10% itself.

Readytech Holdings Ltd (ASX: RDY)

Another ASX share that the broker believes the market is under-appreciating is enterprise technology company Readytech.

Goldman has a buy rating and $4.30 price target on its shares. Based on the current Readytech share price, this implies potential upside of 42% for investors. Its analysts commented:

RDY is building an impressive track record of organic growth, delivering +17% in FY22 and guiding to mid-teens again in FY23, helping to dispel market concerns regarding RDY’s underlying growth.

While concerns around margins are valid with FY23 guidance implying EBITDA margins contract ~250-300bps, we think FY23 will be the trough as RDY exerts pricing power across the portfolio and cycles headwinds from tech labour inflation into FY24. The company has high gross margins (>90%), low churn (~3%) and high recurring revenue (84%) which lends itself to increasing profitability as it scales.

Strong line-of-sight to its FY26 targets, combined with EBITDA margins trending back towards high 30’s should see RDY grow EPS at a >20% CAGR to FY26E.

The post 2 under-appreciated ASX shares that Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

(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

• Why analysts rate these ASX growth machines as buys
• Here are 2 ASX 200 shares that experts rate as buys
• Top brokers name 3 ASX shares to buy next week
• Experts name 3 ASX growth shares to buy in September
• Should you buy these ASX 200 shares after the market selloff?

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 REA Group Limited and Readytech Holdings Ltd. 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/xFDsoIw

The Kogan.com Ltd (ASX: KGN) share price put in a strong showing to end the week, charging 4.5% higher today to close at $3.71.

The broader market was also in the green as the S&P/ASX 200 Index (ASX: XJO) climbed 0.7% to finish at 6,894 points.

What’s driving the Kogan share price higher?

There’s been no news from Kogan, but it could be that positive sentiment towards fellow ASX retail share Temple & Webster Ltd (ASX: TPW) is spreading.

The Temple & Webster share price also felt the love today, capping off the week with a 4.9% gain to close at $5.84.

Temple & Webster hasn’t made any recent announcements either. But it was the subject of a bullish broker note out of Goldman Sachs this morning.

The broker has initiated coverage on Temple & Webster shares, slapping on a buy rating with a 12-month price target of $7.55. This represents a potential upside of 29% compared to the current Temple & Webster share price.

Goldman expects the ASX retailer to grow as a structural winner in the shift to online. The broker pointed to Temple & Webster’s wide range of products and price points, low-inventory business model, the early stages of e-commerce penetration, and a lack of significant competitive threat over the medium-term as reasons to be bullish.

In the same broker note, Goldman also initiated coverage on Adairs Ltd (ASX: ADH) shares with a buy rating and a 12-month price target of $3.05. This implies a potential upside of 47%.

Kogan’s latest developments

Kogan last updated the market when it released its FY22 results. Revenue dropped 8% to $718 million as the company cycled COVID-accelerated growth in the prior year.

Meanwhile, adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) tumbled 69% to $18.9 million as the company continued to battle inventory woes and elevated operating costs.

Looking ahead, the company is expecting the continued expansion of Kogan Marketplace, including the launch of an advertising platform; growth in Mighty Ape; further growth in Kogan First subscribers; continued strong contribution from exclusive brands; and improved operating leverage.

Kogan share price snapshot

The Kogan share price has crumbled 57% this year, and it’s down 65% over the last 12 months.

Kogan’s co-founder and CFO David Shafer has seen this as a buying opportunity, recently picking up more shares.

On 30 August, he purchased 150,000 Kogan shares on the market at an average price of $3.38 per share for total consideration of around $500,000.

The post Why did the Kogan share price leap 5% on Friday? appeared first on The Motley Fool Australia.

(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

• ‘Material runway’: Goldman Sachs says Temple & Webster share price is a buy
• ASX better buy: Temple & Webster or Kogan shares?
• About to go shopping? Kogan share price slides 5% amid acquisition rumours
• Why is the Kogan share price smashing the ASX 200 on Friday?
• How I’d invest $20,000 in ASX shares today if I had to start from scratch

Motley Fool contributor Cathryn Goh 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 ADAIRS FPO, Kogan.com ltd, and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended ADAIRS FPO and Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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/A9oki1l

It might be fair to describe the Telstra Corporation Ltd (ASX: TLS) share price as being ‘stuck in no man’s land’. Today, Telstra shares lost 0.51% of their value, falling to $3.92 each by market close. But, as we looked at yesterday, this puts the Telstra share price at a 7% loss for the 2022 year to date.

After a stellar 2021, which saw Telstra shares gain an impressive 40% or so, this is certainly a change of pace.

One factor that could be weighing on investor sentiment is the ongoing feud between Telstra, its fellow ASX-listed telco TPG Telecom Ltd (ASX: TPG), and its arch-rival Optus.

Optus is not an ASX-listed company. In fact, it isn’t even Australian, being owned in full by the giant Singaporean telco Singtel.

But that hasn’t stopped Optus from raging against what it sees as a detrimental tie-up between Telstra and TPG.

Telstra caught up in Optus spat

As we reported back in July, Optus has taken umbrage with a deal between Telstra and TPG that was first flagged back in February. This will see Telstra give TPG access to around 3,700 Telstra mobile towers, mostly in regional and suburban areas.

This will allow TPG to increase its 4G coverage from 96% to 98.8% of the Australian population. For its trouble, Telstra will receive an estimated $1.6-$1.8 billion in revenues over the next decade from TPG.

But Optus cried foul, seeing the deal as detrimental to its own service provision in regional areas. As we reported in July, Optus stated that the deal would “lead to a loss of competition and material consumer and public detriment… [and] ‘locking’ competition out of the regional market and eliminating choice in regional Australia”.

Well, we’ve now seen the latest chapter in this ongoing dispute. According to a report from itnews.com.au, Telstra and TPG have openly refuted Optus’ claim that their scheme amounted to a ‘merger’ directly to the Australian Competition and Consumer Commission (ACCC). The report states that:

Telstra and TPG have unleashed a blizzard of expert reports in an attempt to refute Optus’ opposition to their proposed spectrum and network-sharing deal.

Optus has already pulled out the big guns

The crux of these reports alleges that Optus would be unable to provide the same kind of arrangement to TPG that it has struck with Telstra. In addition, the reports refute Optus’ other allegations. These include that the deal reduces competition and boosts Telstra’s already dominant market share.

In contrast, senior Optus executives alleged back in June that the proposed deal would be “a backward step for millions of Australians”.

That was none other than former New South Wales premier Gladys Berejiklian.

Berejiklian is now a senior executive with Optus. As we covered at the time, she went on to say:

Our regions need more telecommunications investment, better connectivity, and improved services – and the proposed Telstra / TPG network merger is a very big step backward.

The proposed merger risks these advantages and the future ones and with that, our nation’s economic potential.

So lot’s going on in the ASX telco space at the moment. We can’t be sure of these ongoing spats are denting ASX investors’ confidence in the Telstra share price. But it does not seem like they are helping, going off the company’s lacklustre performance over 2022 thus far.

The post Telstra share price is caught in no man’s land as Optus feud continues appeared first on The Motley Fool Australia.

(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

• ASX bounces back and telco titans tussle. Scott Phillips on Nine’s Late News
• The Telstra share price has gone backwards in 2022. Is now the time to pounce?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Brokers name 2 ASX 200 shares to buy for a retirement portfolio
• Should all ASX investors be buying defensive shares right now?

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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/buRP9cS

The S&P/ASX 200 Index (ASX: XJO) posted its highest close of September so far today. It lifted 0.66% to end Friday’s session at 6,894.20 points. That marks a 0.96% week-on-week gain.

The S&P/ASX 200 Materials Index (ASX: XMJ) led the index with a 3.3% improvement amid higher commodity prices.

Iron ore futures lifted 3% overnight to reach US$100.09 a tonne while the price of copper rose 3.9% and that of nickel gained 0.9%. Gold futures, however, slipped 0.4% to US$1,720.20 an ounce.

The S&P/ASX 200 Energy Index (ASX: XEJ) also rose 1.1% alongside oil prices.

The Brent crude oil price lifted 1.3% to US$89.15 a barrel while the US Nymex crude oil price increased 2% to US$83.54 a barrel.

On the other end of the stick, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) posted a 1.2% fall while the S&P/ASX 200 Real Estate Index (ASX: XRE) slumped 0.8%.

All in all, five of the ASX 200’s 11 sectors closed higher today. But which stocks outperformed? Keep reading to find out.

Top 10 ASX 200 shares countdown

The biggest gain on the ASX 200 on Friday came from materials share Mineral Resources Limited (ASX: MIN).

Rumours the company could be considering spinning out its lithium business likely drove its share price higher today.

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

ASX-listed company	Share price	Price change
Mineral Resources Limited (ASX: MIN)	$71.51	13.58%
De Grey Mining Limited (ASX: DEG)	$1.085	11.86%
Sandfire Resources Ltd (ASX: SFR)	$4.20	7.97%
Fortescue Metals Group Limited (ASX: FMG)	$17.81	6.14%
Pilbara Minerals Ltd (ASX: PLS)	$4.50	5.88%
IGO Ltd (ASX: IGO)	$14.31	5.69%
EML Payments Ltd (ASX: EML)	$1.00	5.26%
Allkem Ltd (ASX: AKE)	$15.95	5.14%
Silver Lake Resources Limited (ASX: SLR)	$1.29	4.88%
Alumina Ltd (ASX: AWC)	$1.445	4.71%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes 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.

(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

• Brokers name 3 ASX shares to buy today
• Up, up, and away: Pilbara Minerals shares deal out another all-time high
• Here are the 3 most heavily traded ASX 200 shares on Friday
• 3 ASX mining shares shooting the lights out on Friday
• Why De Grey, Mineral Resources, Nuix, and Yancoal shares are racing higher

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 EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. 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/1pkPide