Author: therawinformant

The ResMed Inc. (ASX: RMD) share price has been a very strong performer over the last 12 months.

Since this time last year the sleep treatment focused medical device company’s shares have stormed 43% higher.

Is it too late to buy ResMed shares?

I don’t believe it is too late to buy ResMed’s shares. In fact, I continue to believe it is one of the best buy and hold options on the local share market.

This is due to its industry-leading masks and software in an obstructive sleep apnoea (OSA) tipped to grow materially over the next decade and beyond.

One leading broker that is also a fan of the company is Goldman Sachs. This morning the broker has reaffirmed its buy rating and $27.00 price target on the company’s shares.

Why is Goldman Sachs positive on ResMed?

According to the note, Goldman hosted a call with ResMed’s management yesterday and notes that demand for OSA products has remained robust during the pandemic.

Goldman commented: “… we came away from the discussion comforted that the demand profile for OSA masks appears robust (indeed, elevated in many markets due to a heightened appreciation of respiratory care, and facilitated by effective access/distribution through Brightree/resupply).”

While it acknowledges that OSA diagnoses are down year on year, volumes are recovering quickly and are currently at approximately 85% to 90% of last year’s levels.

And the broker suspects that things could get better from here due to an unexpected consequence of the pandemic.

It explained: “In our view, an interesting development through this period is the potential for accelerated adoption of home diagnoses. Prior to Covid-19, this pathway constituted c.40% of new patient volumes in the US and, though greater reliance was initially borne out of necessity, the company is now seeing significantly more clinical/payor support than previously, potentially improving the overall penetration story through the mid-term.”

So, with research estimating that there could be almost 1 billion people globally with OSA, I feel this development bodes well for its future growth and leaves ResMed well-positioned to be a market beater again over the next decade.

More reading

• 5 things to watch on the ASX 200 on Friday
• Diversify your portfolio with 3 top ASX 200 shares from 3 sectors
• 2 ASX healthcare shares to buy for long-term growth
• You could beat the market in the 2020s with these ASX healthcare shares
• 3 companies with great intangible asset moats

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the ResMed share price could still go higher from here appeared first on Motley Fool Australia.

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Although the All Ordinaries (ASX: XAO) index tumbled lower on Thursday, it didn’t stop some shares from pushing higher.

In fact, three shares were even able to race to new record highs. Here’s why these ASX shares are breaking records:

The A2 Milk Company Ltd (ASX: A2M) share price jumped to a record high of $20.05 on Thursday. Investors were buying the infant formula and fresh milk company’s shares after the release of a positive broker note. According to a note out of UBS, its analysts have retained their buy rating and NZ$22.00 (A$20.64) price target on its shares. The broker believes there is some upside risk to its earnings guidance for FY 2020 and suspects a new product could be launched in the not so distant future.

The Afterpay Ltd (ASX: APT) share price continued its remarkable run and reached a record high of $59.64. This latest gain appears to have been driven by a broker note out of Ord Minnett. Its analysts have retained their buy rating and almost doubled the price target on the buy now pay later platform provider’s shares to $64.70. According to the note, the broker believes Afterpay could have almost 10 million active customers using its platform by the end of the financial year. In addition to this, Afterpay has just revealed a partnership with Apple that sees its platform integrated into Apple Pay.

The Pushpay Holdings Ltd (ASX: PPH) share price stormed to a record high of $7.85 on Thursday. This latest gain means the donor management platform provider’s shares have now doubled in value since this time last year. Investors were buying Pushpay’s shares after it upgraded its earnings guidance for FY 2021 just six weeks after issuing it. At its annual general meeting the company revealed that it now expects EBITDA of US$50 million to US$54 million. This compares to its previous guidance of US$48 million to US$53 million and will be double FY 2020’s earnings.

More reading

• ASX 200 falls 0.9%, Afterpay share price hits new record
• 3 undervalued ASX growth companies to add to your portfolio
• 3 stellar ASX mid cap growth shares to buy right now
• Pushpay share price jumps nearly 10% on updated guidance
• The a2 Milk share price just hit a record high: Is it too late to invest?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk and AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why a2 Milk, Afterpay, and Pushpay shares just hit record highs appeared first on Motley Fool Australia.

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If your risk tolerance allows you to invest in small cap ASX shares, then I think the ones listed below could be worth considering.

I believe all three small cap shares could be destined for big things in the future. Here’s why I think you should add them to your watchlist:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap share to watch closely is Bigtincan. It is a fast-growing provider of enterprise mobility software. The company’s software allows businesses to increase their sales win rates, reduce costs, and improve customer satisfaction through improvements in mobile worker productivity. Demand for its software has been growing strongly in recent years and has continued during the pandemic. As a result, the company remains well-placed to deliver strong revenue growth in FY 2020.

Nitro Software Ltd (ASX: NTO)

I think Nitro Software is another small cap ASX share that is worth watching closely. Nitro is a software company which is aiming to drive digital transformation in businesses around the world across multiple industries. The main product in its portfolio is the the Nitro Productivity Suite solution. This solution provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

Whispir (ASX: WSP)

A third and final small cap share that I think could have a bright future is Whispir. It is a growing communications platform as a service (CPaaS) provider which offers an industry-leading software platform. This clever platform allows organisations to deliver actionable two-way interactions at scale by using automated multi-channel communication workflows. Management notes that it has a long runway for growth. The CPaaS market is growing at a rapid rate and is expected to be worth US$6.7 billion per year by 2022.

More reading

• 3 exciting small cap ASX shares to watch closely in the 2020s
• EML Payments and these ASX mid cap shares could be destined for big things
• 3 small cap ASX tech shares that could be stars of the future
• Sezzle Inc shares and 2 other small cap ASX techs surge higher today
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Nitro Software Limited, and Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 excellent small cap ASX shares to add to your watchlist appeared first on Motley Fool Australia.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped notably lower. The benchmark index fell 0.9% to 5,936.5 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to edge lower.

The ASX 200 looks set to end the week on a subdued note on Friday. According to the latest SPI futures, the benchmark index is expected to open the day 4 points or 0.1% lower. This follows a mixed night of trade on Wall Street which has seen the Dow Jones fall 0.15%, but the S&P 500 rise 0.05% and the Nasdaq index climb 0.35% higher. This was the latter’s fifth straight gain.

Oil prices rebound.

It could be a strong finish to the week for energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 2.5% to US$38.90 a barrel and the Brent crude oil price has pushed 2% higher to US$41.53 a barrel. Oil prices rebounded on OPEC+ output optimism.

Gold price edges lower.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could end the week on poor note after the gold price weakened. According to CNBC, the spot gold price is down 0.3% to US$1,730.50 an ounce. The price of the precious metal softened after U.S. jobless claims fell.

ResMed rated as a buy.

The ResMed Inc. (ASX: RMD) share price could go higher from here according to analysts at Goldman Sachs. This morning the broker has reaffirmed its buy rating and $27.00 price target on the medical device company’s shares. Goldman hosted a call with ResMed’s management yesterday and notes that demand for Obstructive Sleep Apnoea (OSA) products has remained robust during the pandemic.

Woodside given buy rating.

In addition to ResMed, Goldman Sachs is positive on Woodside Petroleum. It has reaffirmed its buy rating and $33.85 price target on the energy producer’s shares. This price target implies potential upside of 55.6% for its shares over the next 12 months.

More reading

• Why the ResMed share price could still go higher from here
• ASX 200 falls 0.9%, Afterpay share price hits new record
• Is the Cochlear share price in the buy zone now that it’s down 23%?
• Top brokers have just downgraded Carsales.Com and these outperforming ASX 200 stocks
• Reserve Bank of Australia almost halted property sales in April

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Friday appeared first on Motley Fool Australia.

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