Author: openjargon

The Netwealth Group Ltd (ASX: NWL) share price is pushing higher on Thursday.

In morning trade, the investment platform provider’s shares are up 2% to $22.37.

This leaves its shares just a fraction short of a new record high.

Why is the Netwealth share price rising?

Investors have been bidding the company’s shares higher today in response to the release of its fourth quarter update.

According to the release, Netwealth’s funds under administration (FUA) increased $3.3 billion or 3.9% during the three months ended 30 June. This $3.3 billion increase comprises FUA net inflows of $3.8 billion (up 38.7% on third quarter inflows) and negative market movement of $0.5 billion.

This took Netwealth’s total FUA to a record of $88 billion, which represents a 25% or $17.7 billion increase year on year. This comprises FY 2024 FUA net inflows of $11.2 billion and positive market movement of $6.5 billion.

Also growing during the quarter was the funds under management (FUM). At the end of June, Netwealth’s FUM was up $0.8 billion quarter on quarter to $20.5 billion. This represents FUM net inflows of $0.9 billion.

Netwealth’s Managed Account balance was $17.6 billion at the end of June. This is up $4 billion or 29.4% year on year. Managed Account net inflows were $0.8 billion for the June quarter, increasing by $0.4 billion or 129.2% on the prior corresponding period.

What else did it report?

One thing that could be holding back the Netwealth share price today is its commentary on fees and margins. It said:

Positive market movements of FUA contribute to higher admin fee revenue, however, the impact is significantly diluted due to the structure of tiered administration fees and fee caps. In addition, many ancillaries are unimpacted by market movement. These factors when combined with the lower cash percentage, have resulted in a reduction in average revenue bps for the year, particularly in 2HFY2024.

No earnings updates or guidance was provided with this release. As a result, investors will have to wait for the company to announce its full year results next month to see what impact the above has had on its profitability for the year.

As a reminder, during the first half of FY 2024, Netwealth reported a 20% increase in total income to $123.3 million and a 28.3% lift in net profit after tax to $39.3 million.

The Netwealth share price is 62% over the last 12 months.

The post Netwealth share price higher on record quarter 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. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortunately for growth investors, there are a lot of quality options for them to choose from on the Australian share market.

Two ASX 200 growth shares that have been rated as top buys by brokers are listed below. Here’s what they are saying about them:

Neuren Pharmaceuticals Ltd (ASX: NEU)

The first ASX 200 growth share that could be a buy according to brokers is Neuren Pharmaceuticals.

It is a biotechnology company that is busy developing treatments for rare diseases of the central nervous system. This includes its second drug candidate, NNZ-2591, which is in phase 2 development for multiple neurodevelopmental disorders. To date, positive results have been achieved in clinical trials in Phelan-McDermid syndrome and Pitt Hopkins syndrome.

It is NNZ-2591 that most excites analysts at Bell Potter and underpins its bullish view on the company. It commented:

Our positive outlook on the stock is driven largely by the company’s second asset, called NNZ-2591, currently preparing to start Phase 3 clinical trials in CY25. In the last six months, NNZ-2591 reported highly encouraging Phase 2 data in two rare diseases. NEU will once again have first-to-market opportunities in these two rare diseases, assuming future Phase 3 trials are successful. While short-term news will continue to be impacted by Acadia’s commercialisation of NEU’s first drug, called Daybue, we maintain our BUY recommendation for investors who have a longer 2 to 3-year investment horizon.

Bell Potter has a buy rating and $28.00 price target on its shares. This implies potential upside of 45% for investors.

ResMed Inc. (ASX: RMD)

Analysts at Morgans think that this sleep disorder treatment focused medical device company could be an ASX 200 growth share to buy.

It notes that weight loss drugs have been weighing on sentiment. However, the broker doesn’t believe investors should be overly concerned. Particularly given how large and underserved the sleep disorder breathing market is. Its analysts commented:

While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Morgans has an add rating and $34.11 price target on its shares. Based on its current share price of $28.39, this suggests that upside of 20% is possible for investors over the next 12 months.

The post These top ASX 200 growth shares could rise 20% to 45% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m a big fan of buying cheap ASX shares when it seems like they have been oversold.

We don’t know what share prices will do next, but investing in a good business at a much cheaper valuation can give us a good margin of safety.

One of the most important elements of buying beaten-up stocks is choosing ones with a fair chance of rebounding in the future. Ideally, we don’t want to choose stocks that will keep going down forever and have no hope of a turnaround.

I like stocks that are looking to grow their operations, even during uncertain times such as now. The two ASX shares below look cheap to me.

Accent Group Ltd (ASX: AX1)

As we can see on the chart below, the Accent share price has declined by around 25% since April 2023.

I think that’s a large and appealing decline. Retail conditions have definitely weakened over the last couple of years, but I don’t believe it’s going to be difficult for Accent and other ASX retail shares forever.

Retailers regularly go through economic cycles as households tighten (and sometimes loosen) their financial belts. That’s why I think periods of volatility can be an opportunity to invest in an ASX stock like this.

This business acts as a distributor for a number of global shoe brands including Ugg, Skechers, Henleys, Hoka and Vans. It also owns some of its own businesses including The Athlete’s Foot, Glue Store, Stylerunner, Platypus and Nude Lucy.

The company planned to open at least 20 new stores in the second half of FY24 across both its core banners and new businesses. Further store openings in future years could be helpful for scale benefits. It’s also working on growing its digital sales.

Why is it a cheap ASX share? According to the estimates on Commsec, it’s trading at just 11x FY26’s estimated earnings. It is also projected to pay a grossed-up dividend yield of 11.2% in FY26.

Centuria Industrial REIT (ASX: CIP)

This is the largest Australian-based pure real estate investment trust (REIT) focused on industrial properties. It’s benefiting from the limited availability of commercial property in our capital city locations. Strong rental growth is helping offset the pain of higher interest rates.

It recently acquired another data centre for its portfolio for $39 million, which is leased to Fujitsu. Data centres now make up 12% of the REIT’s portfolio, worth $456 million.

Centuria Industrial said demand for AI and cloud-based solutions is driving data centre growth as businesses and consumers continue to rapidly adopt these technologies.

Is it a cheap ASX share? The business reported it had net tangible assets (NTA) of $3.89 at 31 December 2023. With the Centuria Industrial REIT share price falling by 15% since mid-March 2024, it’s now trading at a 22% discount to the December 2023 NTA.

The post 2 cheap ASX shares near their lows I’m thinking of buying now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Accent Group. 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 Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Now could be the time to pounce on one small cap ASX stock if your risk tolerance allows for it.

That’s the view of analysts at Bell Potter, which believe this speculative stock could have a “lucrative opportunity” in the United States.

Which small cap ASX stock?

The small cap in question is Genetic Signatures Ltd (ASX: GSS).

Genetic Signatures is a specialist molecular diagnostics (MDx) company that is focused on the development and commercialisation of its proprietary platform technology, 3base.

It notes that it designs and manufactures a suite of real-time Polymerase Chain Reaction (PCR) based products for the routine detection of infectious diseases under the EasyScreen brand. Its current target markets are major hospitals and pathology laboratories undertaking infectious disease screening.

What is the broker saying about Genetic Signatures?

Bell Potter notes that the small cap ASX stock recently announced that the US Food & Drug Administration (FDA) has cleared its EasyScreen Gastrointestinal Parasite Detection Kit and GS1 automated workflow’ for marketing and sale in the United States.

The broker has described this as a transformational milestone. It commented:

The first FDA clearance for GSS in June 2024 was a transformational milestone for the company, allowing commercialisation into the USA, the largest molecular diagnostics market globally (~40% of global sales). The FDA-cleared test, called the ‘Gastrointestinal Parasite Detection Kit’, is differentiated from US competitors by its broader coverage of 8 pathogen targets compared to only ~3-4 covered by existing multiplex tests.

Bell Potter thinks that the company’s test has a good opportunity to with market share in the United States given how it is a more efficient, accurate and profitable option for users. It adds:

The limited coverage from existing tests means conventional microscopic examination – referred to as ova and parasite (O&P) tests – are still widely used in the US, with ~5.5 million O&P tests performed annually. O&P tests involve the time-consuming, labour-intensive, inaccurate process of visually examining stool samples under a microscope to identify parasites. O&P tests have turnaround times of 2-4 days with minimal profits for labs at reimbursement of ~US$20/test, whereas GSS’ product is covered by existing reimbursement codes at US$263/test, therefore providing a more efficient, accurate and profitable replacement to O&P tests.

Speculative buy

In light of the above, the broker has retained its speculative buy rating on the small cap ASX stock and lifted its price target to $1.10 (from 75 cents).

Based on its current share price of 73 cents, this implies potential upside of 50% for investors over the next 12 months. It concludes:

FY25 is set to be a positive year for GSS following the appointment of a globally experienced CEO and improved balance sheet post the recent capital raise. First US sales are expected in 1H FY25 and Aus sales should revert to growth following the TGA’s clearance of the revised respiratory test in April. We have updated our forecasts and valuation following the trio of announcements in June and maintain our BUY (speculative) recommendation. We increase our valuation to $1.10 (from $0.75) and see comfortable room for upside to the current ~$119m enterprise value.

The post Buy this small cap ASX stock with a ‘lucrative opportunity’ 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. 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.

S&P/ASX 200 Index (ASX: XJO) gold stock Northern Star Resources Ltd (ASX: NST) has broadly underperformed its peers over the past year.

Over the last 12 months, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold stocks – has gained 12.96% compared to a 4.58% gain for Northern Star shares.

And so far in 2024, the Norther Star share price is down 5.10%, closing yesterday trading at $13.02.

Meanwhile, the All Ords Gold Index is up 3.61% this calendar year.

But things could turn around for the miner’s shares in the second half of 2024 and into 2025.

Leading broker upgrades outlook for Northern Star shares

Citi analyst Kate McCutcheon has a bullish outlook on this recently underperforming ASX 200 gold stock.

This week, Citi upgraded Northern Star shares to a ‘buy’ rating from its prior ‘neutral’ rating

According to McCutcheon (quoted by The Australian), shares in Northern Star “now look cheap” compared to the historically high gold price.

The gold price has soared from US$2,057 per ounce on 2 January to US$2,368, up 15%.

And the broker is expecting more upside for the yellow metal. That bullishness stems from expectations of ongoing strong physical demand along with Citi’s forecast of multiple interest rate cuts from the US Federal Reserve commencing in September.

Gold, which is priced in US dollars and pays no yield itself, tends to perform better in a low or falling interest rate environment.

With the recent underperformance and gold price forecast in mind, Citi raised its price target for the ASX 200 gold stock by 70 cents per share to $15.90. That’s 22.1% above yesterday’s closing price.

However, McCutcheon believes the rally in Northern Star shares is unlikely to eventuate until after the miner reports on its full FY 2024 results and delivers its FY 2025 guidance later this month. That’s because she expects overly optimistic consensus expectations for FY 2025 will pressure the gold miner’s shares.

According to McCutcheon:

With NST’s recent underperformance the question is, how much is already priced in? We expect gold miners to print higher cost guidance and think consensus cost expectations are too low for both costs and capex…

Labour inflation has remained sticky, and several sites have specific issues to address next year like mills and fleet to replace, waste stripping to catch-up on. While cost margins have been expanding versus the gold price, it’s at a lower pace.

The post This ASX 200 gold stock was just tipped for 22% gains appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben 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.

Goldman Sachs has been busy looking at the gaming and gambling industry.

This has led to the broker initiating coverage on three ASX 200 stocks today with one buy rating and two neutral ratings.

Let’s take a look at what the broker is saying about these stocks:

Aristocrat Leisure Limited (ASX: ALL)

According to the note, Goldman has initiated coverage on this gaming technology company’s shares with a neutral rating and $55.30 price target. This implies potential upside of 7% for investors.

While Goldman is a fan of the ASX 200 stock, it doesn’t believe the risk/reward is sufficient to start with a buy rating. It also feels that its growth rates could soon ease. It commented:

ALL’s market leadership in land-based content and cabinets is undisputed, supported by its above industry D&D spend that includes sharing of success with game designers. We are positive on the name but are Neutral rated given: (1) ALL is positioned for strong growth in FY24 driven by outperformance in North American gaming operations. However, we expect growth rates to ease beyond that as ALL may be close to reaching a natural market share ceiling.

Lottery Corporation Ltd (ASX: TLC)

Another ASX 200 stock that has been rated as neutral by Goldman Sachs is lottery operator Lottery Corporation. It has a price target of $5.60 on its shares, which suggests that upside of 13% is possible for investors.

The broker expects a strong result this year but suspects that its growth could be challenged next year. It said:

Lotteries expenditure is known to be relatively defensive through the cycle, growing at +4% CAGR over a 25-year period (1998-2023), however can experience fluctuations on a YoY basis. We are Neutral rated on TLC given: (1) Accelerating revenue (GSe +12% revenue growth and +14% earnings growth) into FY24 resulting in a tough comp period for FY25 which should see a reversion to more normalised jackpot sequencing, absent any active prize management. We remain positive on the longer-term outlook with turnover growth to continue supported by population growth, game changes, and price changes.

Light & Wonder Inc. (ASX: LNW)

The ASX 200 stock that Goldman is tipping as a buy is Light & Wonder. It is a cross-platform global games company that provides gambling products and services.

Goldman has slapped a buy rating and $190.00 price target on its shares, which implies potential upside of 22% for investors over the next 12 months.

The broker believes that Light & Wonder can continue to win market share in Australia and North America and deliver strong profit growth. It said:

LNW is well-placed to continue winning market share in ANZ and North America gaming operations, driving earnings growth of +12% (2-year CAGR) to achieve its FY25 AEBITDA target of US$1.4bn, which we believe has not been factored into market expectations (GSe +3% above VA consensus). Additionally, we believe SciPlay is out indexing the social casino segment driven by higher monetisation rates and modest user growth, despite headwinds in the broader social gaming industry.

The post Goldman Sachs names 1 ASX 200 stock to buy and 2 to hold appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 top ASX growth shares that could rise ~10% to 25%
• 9 ASX All Ords shares lifted to ‘strong buy’ consensus ratings in June
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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 Goldman Sachs Group, Light & Wonder, and Lottery. The Motley Fool Australia has recommended Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s now almost three weeks since Guzman y Gomez Ltd (ASX: GYG) shares joined the ASX boards.

Guzman debuted on the ASX at $22 back at its ASX IPO on 20 June but quickly shot up to $30 each. No doubt that delighted early participants in the IPO and quickly established GYG shares as a formidable ASX force.

But ever since Guzman shares’ first day on the public markets, it has mostly been downhill for investors, with a bit of volatility sprinkled in.

At the close on Wednesday, GYG shares were going for $27.80 apiece. That’s still a good 26.3% above the company’s IPO price but down almost 8% from the highs we saw upon the company’s ASX entry.

Despite this descent from $30, it’s still hard to call Guzman’s ASX IPO anything but a roaring success for the company.

GYG stock: Buy or sell?

But now that Guzman has settled into ASX life and the hype from its IPO has died down a little, it’s a great time to see what ASX brokers think of this new kid on the ASX block.

After all, it’s a good opportunity to get a grip on Guzman’s fundamentals and see what the experts reckon now that we’ve all had a chance to analyse this company post-IPO.

To begin, let’s look at the views of ASX broker Morgans.

As my Fool colleague James covered earlier this month, Morgans initiated its coverage of GYG shares by issuing an ‘add’ rating alongside a 12-month share price target of $30.80.

This broker sees strong long-term growth in Guzman’s future and believes that the company’s plan to reach 1,000 restaurants in Australia is doable if it succeeds in executing its plan to open  30-30 stores annually.

Morgans has also set a long-term share price target of $62 for GYG. That is based on an assumption that the company will be able to successfully expand into the American market.

But Morgans isn’t the only broker eyeing off Guzman y Gomez shares after their IPO. As reported by the Australian Financial Review this week, Wilsons is another broker seeing success in this company’s future.

Another ASX broker says buy on Guzman y Gomez shares

Wilsons has reportedly given Guzman shares an ‘outperform’ rating, with a 12-month share price target of $31.98. If realised, Guzman would gain almost 15% from the current share price.

The broker acknowledged that this share price target was ambitious but argued it was still achievable thanks to Guzman’s unique opportunity to capitalise on Australians’ growing appetite for Mexican-themed food.

Here’s some of what Wilsons’ head of research, James Ferrier, had to say on this bullish position on Guzman shares:

The market opportunity in Australia for a Mexican-inspired quick service restaurant offering has enthused us for some time… GyG has established a domestic store network with very attractive unit economics and sufficient scale to support expectations of a significant and successful full store rollout.

Wilsons is also pencilling in a same-store sales growth rate of 4.5% annually until 2030, along with increasing margins from each restaurant.

Foolish takeaway

No doubt, ASX investors who have already bought into Guzman shares or are even considering a buy will take a lot of comfort from the views of these two ASX brokers.

But brokers aren’t always on the money. Only time will tell if GYG can pull off its ambitious growth plans and justify these experts’ bullishness.

The post Here’s what ASX brokers are saying about Guzman y Gomez shares right now appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares I’d give a wide berth to in today’s stock market
• 5 reasons I’d throw Guzman y Gomez shares in the bin like a bad burrito
• Top brokers name 3 ASX shares to buy next week
• Why I invested in Guzman Y Gomez (GYG) shares this week for the long-term
• GYG share price ends the week at $28. Is $62 in its future?

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.