Category: Stock Market

There’s been plenty of M&A activity in recent months and this trend shows no signs of slowing.

This morning, two ASX shares revealed that they have received takeover offers.

Here’s what you need to know:

Prospa Group Ltd (ASX: PGL)

The Prospa share price has jumped 15% to 43 cents after the financial technology company accepted a takeover offer. Prospa has entered into a scheme implementation deed with a consortium led by the Salter Brothers Tech Fund.

Prospa’s Independent Board Committee (IBC) unanimously recommends that shareholders vote in favour of the 45 cents per share cash offer. That is in the absence of a superior proposal and subject to the independent expert’s report.

While a premium to recent levels, it is a long way from the ASX share’s 2019 IPO price of $3.78 per share.

In other news, this morning Prospa reported a 7.4% increase in half-year revenue to $145.4 million and a profit before tax of $9 million (from a $6.3 million loss).

QANTM Intellectual Property Ltd (ASX: QIP)

The QANTM share price is up 20% to $1.38. This morning, the intellectual property services company confirmed that it has received a non-binding indicative proposal from Rouse International.

Rouse is a UK-based international intellectual property firm operating in 12 jurisdictions, with a significant emphasis on the Asia Pacific region.

Following careful consideration of the unspecified offer, the QANTM Board has agreed to Rouse’s request to conduct due diligence with a view to putting forward a binding offer capable of being considered by shareholders.

Management warned that there is no certainty that a transaction capable of being considered by shareholders will eventuate.

The post 2 ASX shares rocketing up to 20% on takeover news 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

• Guess which ASX 300 stock is surging 14% amid mounting profits
• Tyro share price retreats 13% despite rocketing profits
• 2 ASX industrials shares crashing up to 22% on earnings
• Everything you need to know about the new Coles dividend
• Brainchip share price crashes 23% following another year of losses for ASX AI chipmaker

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.

from The Motley Fool Australia https://ift.tt/4MD3nxs

The Tyro Payments Ltd (ASX: TYR) share price is tumbling today as the market makes sense of its FY24 half-year results.

Shares in the payments solutions provider are down a staggering 12.5% to $1.05 currently. The move marks a swift reversal from the $1.30 price that Tyro shares changed hands in the first moments of trading.

Tyro share price ignores first-half growth

Here are some of the key metrics for the six months ended 31 December 2023:

• Transaction value up 2.2% to $22.17 billion
• Merchant count grew by 2.8% to 68,780
• Revenue up 9.5% to $237.1 million
• Gross profit up 10.5% to $105.2 million
• EBITDA up 40.6% to $27.35 million
• Statutory net profit after tax (NPAT) up 367.2% to $5.14 million

What else happened in the first half?

Tyro’s latest report showed transaction value derived from its discretionary merchants — retail and hospitality — were soft in the first half.

Of the two, retail suffered the most, experiencing a 2.1% decline to $5.393 billion processed. Meanwhile, the hospitality vertical saw transaction value increase a meagre 1.8% to $9.455 billion.

The company’s non-discretionary segment delivered the source of growth. Tyro’s ‘services/other’ vertical clipped the ticket on $1.704 billion of card tapping, up 7.2% from the prior corresponding period. However, ‘health’ merchants stole the show, increasing payment value by 24.2% to $3.139 billion.

The company also noted its new merchant applications were offset by “elevated merchant churn of 16%” versus 11.7% in the previous first half. Interestingly, Tyro attributed this churn to the macroeconomic environment, aggressive competitive behaviour from one of its point of sale partners and the ‘Bring Your Own (BYO)’ offering.

Finally, legal matters between Tyro and Kounta (a point-of-sale provider) unfollowed throughout the period. On 16 November 2023, the courts ruled in favour of Tyro as Kounta was found to be in breach of its contractual obligations, sending the Tyro share price higher.

Shortly after, Kounta filed an appeal to the New South Wales courts. The two companies have since reached a settlement resulting in Tyro receiving $10 million in damages and Kounta being barred from offering competing products until 6 September 2024.

What did management say?

Tyro CEO and managing director Jon Davey highlighted the improving economics from broadened solutions, stating:

Our customers appreciate the simplicity of our integrated payments and cashflow offering. During the half, almost one in five new customers signed up for our payments and banking products, valuing the benefits that an integrated solution provides, and we expect this number to grow significantly over the calendar year.

Furthermore, Davey highlighted an accelerated development of new payments and banking features, which will be released to merchants from June.

What next for Tyro?

A glimpse into the next six months was shared through the company’s updated FY24 guidance. Based on the figures, management expects the second half to resemble the first. The company’s FY24 guidance is as follows:

• Transaction value between $43 billion to $44 billion
• Gross profit between $208 million to $215 million
• EBITDA between $54 million to $58 million
• Targeted EBITDA margin of approximately 26%

Pleasingly for shareholders, positive free cash flow is forecast to continue.

Tyro share price snapshot

In light of today’s decline, the Tyro share price is now 34% below where it was a year ago. For context, the broader S&P/ASX 200 Financials (ASX: XFJ) sector is up nearly 12% over the same span of time.

Factoring in its latest earnings, Tyro now trades on a price-to-earnings (P/E) ratio of roughly 56 times.

The post Tyro share price retreats 13% despite rocketing profits 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 Fletcher Building, GQG, Pilbara Minerals, and Tyro shares are climbing today

Motley Fool contributor Mitchell Lawler 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 Tyro Payments. The Motley Fool Australia has recommended Tyro 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/Fe0NI2M

The Australian share market is out of form on Tuesday with the All Ordinaries index currently down approximately 0.3%.

While that’s disappointing, it is nothing compared to the declines being recorded by the two ASX industrials shares listed below.

Here’s why they are being sold off today:

Ashley Services Group Ltd (ASX: ASH)

The Ashley Services share price is down 22% to 27 cents. This morning, the integrated provider of training, recruitment and labour hire released its half-year results and reported a 10.8% increase in revenue to $290.8 million but an 83% decline in net profit after tax to $1 million. The company’s profits were hit by impairments relating to the Linc business.

The ASX industrials share’s managing director, Ross Shrimpton, was disappointed with the half. He said:

The first half result has been challenging. The outcome of the Linc acquisition is disappointing. As with all acquisitions, there was risk associated with the purchase of Linc. We had 18 months to renew the major customer contract or secure new customers and expand within the higher margin Oil and Gas sector. As of today, the business is ongoing, but with minor contracts in hand. Earnings from Linc in FY24 will be negligible.

The value of acquired customer relationships (originally $2.5 million) have been written off in full throughout FY23 and H1 FY24. Goodwill has also been impaired, with its value reduced to $0.35 million during H1 of FY24.

Silk Logistics Holdings Ltd (ASX: SLH)

The Silk Logistics share price is down 13% to $1.55. This follows the release of the logistics provider’s half year results. Silk reported a 9% increase in revenue to $276.5 million but a 22.4% decline in underlying net profit after tax to $7.6 million. Management blamed the profit decline on additional right-of-use (property lease) depreciation expense.

Looking ahead, the company expects revenue of $540 million to $560 million and underlying EBIT of $34 million to $37 million. Though, management warned that trading conditions are tough. It said:

Trading conditions are expected to remain challenging for the remainder of FY24. Silk will focus on preserving profitability through increased operational efficiencies, driving organic growth and integration of acquired businesses to realise synergy benefits. Silk maintains a positive outlook with respect to its business development pipeline and its customer value proposition to win further new business.

The post 2 ASX industrials shares crashing up to 22% on earnings 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

• Tyro share price retreats 13% despite rocketing profits
• Everything you need to know about the new Coles dividend
• Brainchip share price crashes 23% following another year of losses for ASX AI chipmaker
• 4 ASX tech shares tumbling on results releases
• Guess which ASX 200 stock is nosediving 20% on half-year results

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 Silk Logistics. The Motley Fool Australia has recommended Silk Logistics. 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/9QCUV38

Having rebounded from a lengthy slide to soar 206% over the past month (as of market open), the Brainchip Holdings Ltd (ASX: BRN) share price is crashing today.

Shares in the All Ordinaries Index (ASX: XAO) artificial intelligence (AI) chip maker closed yesterday trading for 49 cents. In morning trade on Tuesday, shares are swapping hands for 38 cents apiece, down 22.5%.

For some context, the All Ords is down 0.3% at this same time.

This comes after Brainchip released its full-year 2023 results after market close yesterday.

Here are the highlights.

(Note, all figures in US dollars.)

Brainchip share price crumbles amid mounting losses

• Net loss after tax of $28.9 million, compared to a net loss of $22.1 million the prior year
• Trade and other receivables of $2.42 million, up modestly from $2.35 million in 2022
• Release of second generation Akida technology (Akida 2.0)
• Cash and cash equivalents of $14.3 million as at 31 December

What else happened with Brainchip during the year?

The increased year on year losses that look to be weighing on the Brainchip share price today were said to reflect lower revenue as the company shifted focus to the development and marketing of Akida 2.0.

Operating expenses also increased modestly year on year.

Cash outflows used in operating activities came to $17.5 million for the year, up from $13.6 million in 2022.

Brainchip’s second-generation Akida neuromorphic AI product, Akida 2.0, became available as IP in October.

Brainchip did not secure royalty-bearing IP sales agreements in 2023. But the company noted it had “laid the foundations for future commercial success through a more focused, targeted, and qualified customer engagement strategy”.

Though judging by today’s selling action, ASX investors don’t appear overly enthusiastic about those foundations.

2023 also saw Brainchip exit the S&P/ASX 200 Index (ASX: XJO) in September, following the S&P Dow Jones Indices quarterly rebalance.

What did management say?

Commenting on the 2023 results sending the Brainchip share price plunging today, CEO Sean Hehir said:

While the bottom-line loss increased year over year, the results reflect the large transformation Brainchip underwent in 2023 as we invested heavily in developing our second Generation Akida technology and expanded our sales and marketing capability.

Hehir noted that these investments “are indicative of our continued confidence in the market potential and our detailed plans to capitalise on that opportunity”.

Brainchip share price snapshot

With today’s big loss factored in, the Brainchip share price is down 26% in 12 months.

The ASX AI stock remains up 152% over the past month.

The post Brainchip share price crashes 23% following another year of losses for ASX AI chipmaker 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

• The Brainchip share price is up 213% this month. Is Nvidia to blame?
• How is the BrainChip share price rocketing 27% today?

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.

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

A number of ASX tech shares have released their latest results this morning.

Unfortunately, it seems that not all these results have gone down well with the market.

Here’s are four ASX tech shares falling after reporting their latest numbers:

Altium Ltd (ASX: ALU)

The Altium share price is down 1% to $64.45. This morning, the electronic design software provider released its half-year results and reported a 15.9% increase in revenue to US$136.6 million and an 11.4% lift in net profit after tax to US$33 million. Altium declared an interim dividend of 30 cents per share, which is up from 25 cents per share a year earlier.

Altium is in the process of being acquired by Japanese tech company Renesas.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is down 1.5% to $11.68. This follows the release of the computer hardware and software distributor’s full-year results which revealed a 5.6% increase in gross revenue to $3.3 billion and a 12.5% jump in net profit after tax to $82.15 million.

Dicker Data’s Chairman and CEO, David Dicker, said:

The last few years have been somewhat difficult. Last year, another one. However, we still increased gross sales by over 5% and after tax profits by 12.5%. Our NZ operation continues to improve and our security business has great growth potential. All in all, a very satisfying result, especially when compared to our direct competitors, and the more general market. Things are starting to look up on the general front and 2024 looks promising.

Readytech Holdings Ltd (ASX: RDY)

The Readytech share price is down 10% to $3.22. This morning, this enterprise software provider reported a 14.2% increase in revenue to $54.7 million and a 10.6% lift in underlying EBITDA to $17.4 million.

However, it has lowered its expectations for the second half. Readytech’s co-founder and CEO, Marc Washbourne, said:

Due to timing of a number of high conviction enterprise contracts shifting to FY25, we now expect the growth rate for FY24 to be in the low double digits. Accordingly, we have updated our medium-term target to exceed organic revenue growth of $170.0 million by FY27.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is down 8% to $4.10. This follows the release of the semiconductor company’s half-year results. The heavily shorted $800 million company reported a grand total of $153,000 in revenue for the six months with a loss of $25.2 million.

This reflects higher research and development costs of $18 million for the period and the doubling of its sales and marketing expense to $3.3 million.

The post 4 ASX tech shares tumbling on results releases 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

• 2 ASX shares showing ‘strong growth’ that offer value right now
• These are the 10 most shorted ASX shares
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• Why are ASX tech shares booming on Friday?

Motley Fool contributor James Mickleboro has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Dicker Data, and ReadyTech. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended ReadyTech. 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/Uy6Pzto

ASX 200 stock Johns Lyng Group Ltd (ASX: JLG) is cratering on Tuesday, falling 20.15% shortly after the market open after the building services company released its 1H FY24 earnings.

At the time of writing, Johns Lyng is the worst-performing stock of the ASX 200 benchmark index.

While the company said it had delivered strong earnings growth, investors appear to be disappointed with the numbers. The ASX 200 stock fell to an intraday low of $5.75 in the first hour of trading.

The Johns Lyng share price opened at $6.65 and is currently sitting at $5.80.

ASX 200 stock spiralling on news of profit drop

Johns Lyng specialises in the rebuilding and restoration of properties damaged in weather events for the insurance industry. It also builds commercial property and offers strata management services.

Here are the key numbers for 1H FY24:

• Sales revenue of $610.6 million (1H FY23: $635.6 million)
• Group earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $69.7 million (1H FY23: $64.5 million)
• Net profit after tax (NPAT) of $31.1 million (1H FY23: $34.1 million)
• Earnings per share (EPS) of 8.47 cents (1H FY23: 9.68 cents)
• Net assets of $460.3 million, including net cash of $53.7 million
• Interim dividend of 4.7 cents per share payable 19 March (fully franked)
• Dividend is 56% of NPAT in line with the payout policy of 40%-60% of NPAT

What else happened in 1H FY24 for this ASX 200 stock?

Johns Lyng said it had a record volume of Business as Usual (BaU) work during the quarter. This resulted in $426.1 million in revenue, up 13.7% on 1H FY23.

However, Catastrophe (CAT) revenue was lower at $120.4 million, down 35% on the record revenue of 1H FY23. However, the company points out that this represents more than 87% of its full-year FY24 forecast. This has led to an upgraded full-year revenue forecast of $177.8 million.

The company said its group EBITDA of $69.7 million includes BaU EBITDA growth of 28.1% to $55 million.

Johns Lyng said it continued to execute its strategy for international growth by expanding its partner network through agreements with Allstate Insurance in the US and Tower Insurance in New Zealand.

What did Johns Lyng management say?

Group CEO and managing director Scott Didier AM said:

We are proud to deliver these strong results for the first half of FY24, which again underscore the resilience of our business model and operational framework.

Our IB&RS BaU work constitutes the cornerstone of JLG’s earnings. With an annuity style profile, these earnings instil a confidence in our sustained revenue streams, and we anticipate substantial growth as we continue to enhance our market presence and capitalise on our diversified service portfolio, notably within our burgeoning Strata business.

During the period, we established our fifth strategic growth pillar, Essential Home Services. This followed the acquisition of Smoke Alarms Australia and Linkfire, which significantly progressed our goal of being a full turnkey solution for homeowners, property managers, and Strata managers.

What’s next for Johns Lyng?

This ASX 200 stock now has upgraded guidance for FY24.

Johns Lyng upgraded its full-year forecast group sales revenue to $1.207 billion and forecast EBITDA to $129.4 million.

The company said its deep relationships with insurers coupled with the continued expansion of its strata services network “forms the bedrock of the future growth prospects for the IB&RS [BaU] division”.

Didier noted an “ongoing and escalating trend” of higher value work in the catastrophe business as a result of prolonged adverse weather events.

Johns Lyng share price snapshot

The ASX 200 building services stock is down 0.33% over the past 12 months.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 5.5% over the same period.

The post Guess which ASX 200 stock is nosediving 20% on half-year results 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

• 2 ASX shares showing ‘strong growth’ that offer value right now
• Where I’d invest $10,000 right now in ASX 200 shares
• I’d aim to turn a $20,000 savings account into $25,400 of passive income
• A once-in-a-decade chance to get rich from ASX 200 shares?
• 1 attractive ASX growth stock for 2024 and beyond

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 positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng Group. 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/9EiBNrS

Both TPG Telecom Ltd (ASX: TPG) and Telstra Group Ltd (ASX: TLS) shares may be attractive to investors looking for ASX telco shares that can provide defensive earnings. But, there’s one that appeals to me more than the other.

Telstra is one of the biggest brands in Australia, while TPG operates a number of brands including Vodafone Australia, TPG and iiNet.

I will look at a few key areas that influence my decision.

Dividends

I wouldn’t want to sell my shares if I were a long-term investor. But, I would want to receive a flow of dividends because that would be how I access my returns.

TPG just reported its FY23 result, which included an annual dividend of 18 cents per share. This payout was the same as FY22 and translates into a grossed-up dividend yield of 5.2%.

Telstra recently revealed its FY24 first-half result which included a dividend per share payout of 9 cents per share (an increase of 5.9%), which translates into an annualised 18 cents per share dividend. At the current Telstra share price, that’s a grossed-up dividend yield of 6.6%.

On this front, Telstra is the winner – its dividend is growing and the dividend yield is bigger.

Operating leverage

One of the main things that I want to see from a business is that its profit can grow faster than revenue, even if slightly faster.

Investors normally focus on how much profit a business makes, so profit growth is a pleasing characteristic.

These ASX telco shares have the ability to display operating leverage. Once the telecommunications network infrastructure has been constructed, the additional users can leverage that same infrastructure, enabling the profit margins to grow assuming everything else remains the same.

In the most recent results, TPG reported service revenue growth of 4.3% to $4.63 billion, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 9.4%, but adjusted net profit after tax (NPAT) dropped 9.6% to $584 million.

Telstra reported in the FY24 first half that total income increased 1.2% to $11.7 billion, underlying EBITDA grew by 3.1% to $4 billion and net profit after tax rose 11.5% to $1 billion.

So Telstra delivered better profit growth, which is helpful to the underlying value of Telstra shares.  

Business plans

Both companies are working hard on growing their mobile businesses by investing heavily in their 5G networks.

Telstra claims to have the market-leading network, and this seems to be attracting a good amount of subscribers each reporting period, which is helping its operating leverage. TPG has growth plans too, but the network is not as big as Telstra and it has fallen behind because of the delayed merger between TPG and Vodafone Australia.

I like that Telstra has been working on diversifying its earnings in a number of different ways, including growing internationally with Digicel Pacific, expanding in digital healthcare with Telstra Health, and growing its cybersecurity capabilities (after an acquisition).

Foolish takeaway

Quite often, being the biggest and strongest comes with advantages. Hence, in my opinion, Telstra is the clear leader and Telstra shares are the better buy.

The post Better buy: TPG or Telstra shares? 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

• Buying Soul Patts shares? Here’s what you’re really buying
• Why Nanosonics, NIB, Santos, and TPG shares are falling today
• Act fast if you want to receive the next Telstra dividend
• TPG share price crashes 10% on FY 2023 results
• 3 ASX dividend shares to buy before it’s too late

Motley Fool contributor Tristan Harrison 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 positions in and has recommended Telstra Group. 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/1vmEB73

If you’re in the process of building or refreshing an ASX retirement portfolio, then it could be worth looking at the ASX shares listed below.

They have been named as buys by analysts at Goldman Sachs and tipped to be long-term winners for investors. Here’s what the broker is saying:

Lifestyle Communities Ltd (ASX: LIC)

The first ASX retirement share to look at is Lifestyle Communities. It is a developer, owner and manager of affordable independent living residential land lease communities.

Goldman Sachs is a big fan of the company and responded to its recent capital raising by retaining its buy rating with a new $21.55 price target. It analysts commented:

The long-term outlook for LIC is very positive — we believe outperformance of the stock will be driven by: (1) a step up in the pace of land acquisitions, with industry build rates below demand from an ageing population; (2) structural growth in demand for land lease as the sector increases its penetration among retirees; and (3) fundamental valuation support for cap rates.

Woolworths Group Ltd (ASX: WOW)

Another ASX retirement share that could be in the buy zone is supermarket giant Woolworths.

It has been tipped to deliver solid earnings and dividend growth over the long term by analysts at Goldman Sachs. This is expected to be driven by market share gains thanks to its omnichannel advantage and powerful loyalty program.

The broker has a buy rating and $40.40 price target on its shares. It said:

We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations.

The post Here are 2 ASX shares to buy for a golden retirement 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

• 25 ASX 200 shares with ex-dividend dates next week
• Analysts have put buy ratings on these ASX dividend stocks
• Are Woolworths shares dirt cheap following the selloff?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

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. 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/QeTbhIy

It’s not often an S&P/ASX 200 Index (ASX: XJO) stock can rocket 160% in a single year but still be considered by some as inexpensive.

But that’s exactly the situation we currently have with Megaport Ltd (ASX: MP1).

The virtual networking technology provider has impressed the market with its recovery since chief executive Vincent English suddenly resigned last March.

Founder and chair Bevan Slattery stepped in as interim boss and set about cutting costs at a company that had made a habit of burning cash.

Last week the fruits of that reform showed up in the half-yearly results.

Gross profit was up 43% year-on-year, revenue was 35% higher, and earnings before interest, taxes, depreciation and amortisation (EBITDA) rocketed a crazy 785%.

So after closing 27 February 2023 at $5.51, Megaport has now almost tripled in just 12 months.

How could these be cheap shares?

So after such a boom time, how can anyone possibly call this stock inexpensive?

Cast your mind back to late 2021.

Inflation was starting to nudge up, but not many people, aside from a few economists, were that worried. Central banks certainly weren’t, with the former Reserve Bank governor remarking that interest rates could stay stable until 2024.

No one, aside from Vladimir Putin’s inner circle, knew that in just a few months, Russia was about to invade a sovereign neighbour with 44 million people.

And a brutal and barbaric conflict in the Middle East was still two years away.

Growth stocks were enjoying a decade-long run of support from markets without a care in the world.

In this environment, Megaport shares, back when the business was losing far more money than it is now, were trading for $21.46 in November 2021.

Even after the meteoric rise in the past year, the stock only just managed to overtake the $14 mark last Friday.

That is what those experts are remembering when labelling Megaport as cheap shares even right now.

Okay, so it’s cheap. But should I buy?

Of course, that naturally leads to the question of whether Megaport is a buy.

Factually, the Megaport business is running in a more profitable manner than it was before the interest rates started climbing.

Back in August 2021, the company reported a $55 million net loss.

Considering this, it’s no wonder many professional investors are still keen on the stock despite the recent run-up.

“Analysts at Macquarie Group Ltd (ASX: MQG) have retained their outperform rating on this network solutions company’s shares,” The Motley Fool’s James Mickleboro reported last week.

“Macquarie was pleased with the finer details [of the financial results] and has boosted its earnings estimates to reflect an acceleration in momentum.”

Broking platform CMC Invest is reporting that 10 out of 15 analysts are currently rating Megaport shares as a buy.

The post This overlooked ASX 200 share is up 160% in a year but still dirt cheap! Should I buy it? 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

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today
• Up 119% in a year, Megaport share price slipping today despite record earnings
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo 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 Megaport. The Motley Fool Australia has recommended Megaport. 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/OFVpSet

There are plenty of ASX 200 shares to choose from on the Australian share market.

And while not all of them are buys, two that could be this week are named below.

Here’s why analysts are feeling bullish about them:

Bapcor Ltd (ASX: BAP)

The team at Morgans think it is worth sticking with this auto parts retailer following its half-year results.

While the broker acknowledges that there is some uncertainty given its new leadership team and strategy, it feels that its valuation still provides an attractive entry point. The broker said:

There is clearly some ‘reset risk’ with a new incoming CEO/CFO. Part of our case for the recent recommendation upgrade was the improved prospect for earnings improvement into FY25. Despite the uncertainty tied to an inevitable strategy review, we continue to see higher earnings in FY25 as realistic. We acknowledge the BAP investment case is tricky until the new CEO provides some strategy clarity. However, despite incurring mgmt and strategy change and a difficult cost environment, the business has been resilient. We think the valuation point continues to provide value on a medium-term view.

Morgans has an add rating and $6.60 price target on its shares.

Qantas Airways Limited (ASX: QAN)

Goldman Sachs is feeling very bullish about this airline operator following its half-year results release.

It continues to believe that the market is undervaluing Qantas’ significantly improved earnings capacity. It highlights:

Notwithstanding a decline in unit revenues (and group capacity still at 95% of pre-COVID) our estimated FY24e EPS sits 52% above pre-COVID levels. Despite this, QAN’s market capitalisation and EV is 17% and 24% lower than pre-COVID levels. We acknowledge broader macro uncertainty at this point in the cycle, but believe the current share price does not reflect the group’s improved earnings capacity.

Goldman has a buy rating and $8.05 price target on its shares.

The post Analysts think these ASX 200 shares are dirt cheap 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

• These ASX shares could rise 30% to 50% in 12 months
• Qantas descends, Treasurer’s RBA dilemma and Twiggy’s payday: Scott Phillips on Nine’s Late News
• Brokers name 3 ASX shares to buy now
• Bapcor share price resilient following record half year revenues
• Why Qantas shares could rise over 50%

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. The Motley Fool Australia has recommended Bapcor. 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/pa4jXcZ