Category: Stock Market

The Siren Gold Ltd (ASX: SNG) share price is rocketing higher this morning, up 18%.

The ASX gold share minnow closed yesterday at 25 cents and is currently trading for 29 cents.

The 18% gain comes as the All Ordinaries Index (ASX: XAO) is up less than 0.2% at time of writing and the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has dipped into the red, down 0.3%.

While gold prices remained steady overnight at US$1,998 per ounce, bullion has dipped from highs of over US$2,050 per ounce earlier this week.

So, what’s driving investor interest in the tiny ASX gold share?

What’s driving investor interest in the ASX gold share?

The Siren Gold share price is heading skywards after the company reported it has intersected “significant visible gold” in the deepest hole it’s drilled so far at its Alexander River project in New Zealand.

In continuing drilling at the McVicar West location within the project, Siren extended the shoot an additional 200 metres down plunge. That brings the total drilling to 500 metres below the historic McVicar mine, which the company said produced 41,000 ounce of gold at 26 grams per tonne.

The intercept in the drill hole returning visible gold was comprised of “2-3 metres of strong acicular arsenopyrite, followed by a 0.6 metre quartz vein with significant visible gold”.

The ASX gold share minnow could also be getting a boost from potentially promising results from other drill holes.

Among those the company reported, “At Bull East AX79 intersected 9 metres of strong acicular arsenopyrite mineralisation, extending the Bull East shoot to 400 metres down plunge.

Siren Gold share price snapshot

Despite today’s big boost, the Siren Gold share price remains down 8.1% in 2022. That compares to a year-to-date loss of 6.9% posted by the All Ords.

At the current share price, the ASX gold share minnow has a market cap of approximately $21 million.

The post Why is this ASX gold share minnow rocketing 15% today? appeared first on The Motley Fool Australia.

More reading

• Why this broker says buy Origin (ASX:ORG) shares instead of AGL
• Why is the IAG (ASX:IAG) share price edging higher today?
• The Myer (ASX:MYR) dividend is back. Here’s what you need to know
• Nickel Mines (ASX:NIC) has just withdrawn its share purchase plan. What’s going on?
• Top broker tips Woolworths (ASX:WOW) share price to rise 13%

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 Bruce Jackson.

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Origin Energy Ltd (ASX: ORG) and AGL Energy Limited (ASX: AGL) are two of Australia’s largest energy companies.

But only one of them represents a good investment option right now according to the team at Morgans.

Origin shares are a buy

According to the note, the Morgans thinks investors should be buying Origin shares over AGL shares right now.

This week the broker put an add rating and $6.44 price target on the company’s shares. Which, based on the current Origin share price of $5.82, implies potential upside of almost 11% over the next 12 months.

In addition, its analysts expect a 12-month fully franked dividend yield approaching 5% to sweeten the deal even further.

As a comparison, Morgans has a hold rating and $7.24 price target on AGL’s shares. Which is a touch lower than the current AGL share price of $7.28.

Why Origin over AGL?

Morgans sees AGL as a difficult investment proposition at present.

It notes: “AGL remains a difficult investment proposition ahead of its demerger with its component parts likely to attract investors who have environmental priorities that are at polar opposites.”

As for Origin, the broker was pleased with its recent update and $250 million on-market share buyback. It also believes the company’s APLNG business is well-placed to generate robust cash flows that underpin strong dividends.

Its analysts explained: “ORG is looking to farm down interest in its Beetaloo basin tenure and has reiterated steady production targets for APLNG. It is also taking a selective approach to Energy Markets investment. We therefore see limited growth opportunities for the company but equally limited need to spend capital. Our outlook for commodity prices suggests ORG could sustain strong dividends in the medium term. We maintain our ADD rating and see 10% upside to our valuation on today’s closing price and potential dividend yield of 5% giving forecast 12-m TSR of 15%.”

The post Why this broker says buy Origin (ASX:ORG) shares instead of AGL appeared first on The Motley Fool Australia.

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• Soul Patts urges AGL (ASX:AGL) board to give ‘more thought’ to takeover bid
• ASX 200 (ASX:XJO) midday update: Origin’s $250m buyback, Nickel Mines smashed
• Origin (ASX:ORG) share price higher on $250m buyback and refreshed strategy
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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 Bruce Jackson.

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The Insurance Australia Group Ltd (ASX: IAG) share price is moving forward mid-morning on Friday. This comes after the insurance giant provided a market release in relation to its subordinated notes.

At the time of writing, IAG shares are up 0.12% to $4.34 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.13% to 7,121 points.

Let’s take a closer look at what the company updated the ASX with today.

What did IAG announce?

In today’s statement, IAG advised it has registered its product disclosure statement for an offer of unsecured subordinated notes.

This will see up to NZ$400 million (A$373.33 million) of notes made available to New Zealand retail investors and certain institutional investors.

This will comprise a direct reinvestment offer for up to NZ$30 million (A$27.99 million), and a primary offer for up to NZ$370 million (A$345.24 million).

Both offers are expected to open on 21 March 2022, with the indicative margin expected to be announced via the New Zealand stock exchange (NZX) on the same date.

The offer is set to close on 25 March 2022, and the fixed rate will be revealed on or about the same day.

In addition, the notes will be issued on 5 April 2022 and quoted on the NZX Debt Market the following day.

The first interest payment date falls on 15 June 2022, with quarterly intervals thereafter.

The maturity date for the notes is 15 June 2038.

IAG management noted that the offer is part of the company’s capital management strategy. The proceeds will be used for general corporate purposes, including the refinancing of existing debt.

About the IAG share price

Over the past 12 months, IAG shares have been somewhat volatile, moving in peaks and troughs throughout the period.

The shares have lost around 6% in value since this time last year and they are still heavily down from pre-pandemic levels. In early 2020, the IAG share price was as high as $8 before plummeting to multi-year lows in the COVID crash.

IAG commands a market capitalisation of roughly $10.6 billion with more than 2.46 billion shares outstanding.

The post Why is the IAG (ASX:IAG) share price edging higher today? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• ‘Widespread flooding’ update: IAG (ASX:IAG) share price backtracks
• ASX 200 (ASX:XJO) midday update: Origin’s $250m buyback, Nickel Mines smashed
• The IAG (ASX:IAG) share price managed to gain 8% in February. Here’s how
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Aaron Teboneras 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 owns and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Myer Holdings Ltd (ASX: MYR) shares have been known for a lot of things over the past few years. But paying dividends hasn’t been one of them. This famous Australian retailer has been infamously struggling in recent years. Most of us would know the threats that a changing retail landscape has confronted department stores like Myer with. Back in 2010, Myer was a $3.71 share. Today, it’s currently going for 50 cents, down 0.98% so far this Friday. The Myer share price is also down by more than 55% over the past 5 years. 

But Myer is now up an eye-catching 20.24% over the past 5 trading days. This dramatic jump upwards was sparked by the company’s release of its half-year earnings results yesterday morning.

As we covered at the time, Myer reported total sales growth of 8.5% to $1.52 billion, along with a 55.2% increase in net profits after tax to $32.3 million. 

Myer shares break a dividend drought

But perhaps the biggest piece of news was the resumption of dividend payments. Myer shareholders haven’t received a dividend since the 2017 financial year. But that is about to change. Myer told investors that an interim dividend of 1.5 cents per share, fully franked, would be coming their way soon. 

That’s not quite as much as Myer’s last dividend of 2 cents per share that investors received back on 9 November 2017. Or the 2017 interim dividend of 3 cents per share before that. But it’s certainly better than what investors have received ever since.

Myer shares will trade ex-dividend for this payment on 23 March, with the cash arriving in shareholders’ pockets on 12 May.

At the current Myer share price of 50 cents, this dividend will be worth a yield of 3% (or 4.29% grossed-up with the full franking). If Myer repeats this dividend for its final results later in the year (which is just hypothetical at this point), it would give Myer a forward dividend yield of 6% on today’s pricing. 

So it’s perhaps no wonder that investors got so excited on this news yesterday.

At the current Myer share price, this ASX retailer has a market capitalisation of $418.85 million. 

The post The Myer (ASX:MYR) dividend is back. Here’s what you need to know appeared first on The Motley Fool Australia.

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• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher
• Myer (ASX:MYR) share price up 21% amid strong half-year result and first dividend since FY17

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 Bruce Jackson.

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The Nickel Mines Ltd (ASX: NIC) share price is back in focus today after the company announced it is withdrawing its share purchase plan.

In early trade, shares in the mining company are up 3.69% to $1.26. However, this is still a considerable distance away from its recent $1.60 level — a price that Nickel Mines was hovering around prior to the nickel mania.

Handing back $57 million to shareholders

To set the scene, back in February Nickel Mines revealed its intentions to raise capital to fund its stake in the Oracle Nickel Project (ONI). The plan was to raise US$225 million to put towards an initial 30% position in the project.

As part of the capital raise, a share purchase plan was launched to allow ASX shareholders to participate. Importantly, the plan outlined an issue price of A$1.37 per share. This was roughly in line with the Nickel Mines share price at the time.

Initially, around A$18 million was targeted for this portion of the funding. However, Nickel Mines has said the applications received reached A$57 million.

Since then, the nickel company has suffered a hefty blow despite nickel futures flying to record highs of more than US$100,000 per tonne. Unfortunately, one of Nickel Mines’ largest shareholders held a sizeable short position during this time.

The outcome was widespread concern among shareholders over what the implications could be for the Nickel Mines share price. As a result, the market swiftly sold off the ASX mining giant over the past two days of trading.

Now, shares are below $1.30, putting any share purchase plan participants at an immediate 7% deficit from the raising price. As such, the board has made the decision to return the A$57 million to shareholders and cancel the plan.

Nickel Mines managing director Justin Werner stated:

[…] given market volatility and the retraction in the Company’s share price in recent days the Board of Directors have agreed that it is in the best interests of shareholders to cancel the SPP effective immediately and return all applications in full. The proceeds of the SPP are not required for the acquisition of the 70% equity interest in the Oracle Nickel Project.

Nickel Mines on the ASX recap

The Nickel Mines share price gained ongoing traction in October last year as ASX investors began tuning in to rising commodity prices.

Between October 2021 and January 2022, shares in the nickel producer rallied a solid 83%. However, the recent tarnishing has taken the Nickel Mines share price into the negative on a year-to-date basis. Since the beginning of the year, it has retreated 13.5%.

The company is currently trading on a price-to-earnings (P/E) ratio of around 15 times.

The post Nickel Mines (ASX:NIC) has just withdrawn its share purchase plan. What’s going on? appeared first on The Motley Fool Australia.

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• Nickel Mines (ASX:NIC) share price tumbles again, down 25% this week
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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 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 Bruce Jackson.

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The Woolworths Group Ltd (ASX: WOW) share price is currently having a subdued finish to the week.

In morning trade, the retail giant’s shares are trading flat at $35.76.

Where next for the Woolworths share price?

One leading broker that believes the Woolworths share price could be heading higher from here is Citi.

According to a recent note, the broker has a buy rating and $40.30 price target on the retailer’s shares.

Based on the current Woolworths share price, this implies potential upside of almost 13% over the next 12 months.

And with Citi forecasting a fully franked 2.7% dividend yield in FY 2022 and then 3% in FY 2023, the total potential return on offer over the next 12 months is over 15%.

What did the broker say?

Citi was pleased with Woolworths’ performance during the first half, noting that its earnings were in line with expectations.

It commented: “Woolworths reported 1H22 EBIT of $1,382 million, consistent with guidance and inline with Citi and Visible Alpha consensus. Momentum in Australian Food improved following the mid-December trading update with EBIT at the top end of guidance and total sales growth of 3.6% in December.”

In addition to this, its analysts have named three reasons to be positive on the company’s outlook.

The broker explained: “We see an improving outlook given 1) eased restrictions and declining cases enabling a reduction in COVID costs and better operational efficiency; 2) food inflation lifting with shelf prices up ~2-3% in 2H22e to date; and 3) margin benefits as some online customers return to stores. We make small upward revisions to EBIT of ~1%.“

All in all, this could make the Woolworths share price one to consider if you’re looking for blue chip options this month.

The post Top broker tips Woolworths (ASX:WOW) share price to rise 13% 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 Bruce Jackson.

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Amazon.com Inc (NASDAQ: AMZN) is a company most Aussies would be familiar with. The US tech giant’s flagship online marketplace has been active in Australia for years now. And Amazon’s dominating presence in cloud computing has also turned investors’ heads in recent years. Not to mention the space-hopping antics of its famous founder Jeff Bezos more recently.

But Amazon might also be famous for its stock price. Amazon shares are among the most expensive on the US markets. Just one will set an investor back US$2,936.35 on the latest pricing. And that’s after a major pullback. The company’s 52-week (and all-time) high remains at a whopping US$3,773.08. That works out to be $5,162.94 in our dollars at current exchange rates.

This aspect of Amazon’s reputation looks set to be shaken up. According to our Fool colleagues over in the US, the company has reportedly just announced a stock split, its first in more than 20 years.

Amazon to join the stock-split club

A stock split is when a company issues more shares of stock in order to lower the price of its individual shares. It has become quite a popular exercise in recent years among some of the US’s largest tech companies. Since 2020, we have seen companies ranging from Apple Inc (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) to NVIDIA Corporation (NASDAQ: NVDA) and Tesla Inc (NASDAQ: TSLA) announce stock-split plans of their own.

But Amazon is now the latest to join the club.

The company will reportedly be undertaking a 20-for-1 stock split later this year, subject to investor approval at the annual general meeting in May. That means that if an investor owns one share of Amazon today, they will own 20 shares instead come the split. Each will be worth approximately one-20th of what that stock will be priced at just before the split. The company also announced an expanded share buyback program, to be worth US$10 billion.

Of course, a stock split does nothing in theory to change a company’s value. It can be thought of as ‘recutting the pizza’. If Amazon is the pizza, whether it has eight slices or 16 doesn’t change the overall size of the meal.

Recutting the pizza…

But for a few possible reasons, stock splits tend to be popular with investors regardless. That might be why we saw Amazon shares gain an impressive 5.41% to US$2,936.35 last night during US trading. For one, a stock split usually increases the ownership potential for the company’s shares. In Amazon’s case, it will be a lot easier to buy Amazon shares if they are priced at US$146.82 than $2,936.35. More shares at a lower price usually boost liquidity too.

Here’s how eToro’s Josh Gilbert described the effects of a stock split for retail investors:

Stock splits change nothing about the fundamentals of a stock. The splits are simply a psychological factor for retail investors buying assets. A stock that is priced at USD$100 compared to USD$2,500 is more attractive to retail investors.

Fractional share trading is now an important part of investing, but the price of a stock can still play an important factor. Investors will often feel that a stock with a lower share price has more growth potential than one with a higher price.

At Amazon stock’s last closing price, the US tech giant has a market capitalisation of US$1.49 trillion.

The post Amazon (NASDAQ:AMZN) announces US$10b share buyback and 20-for-1 split appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Alphabet (A shares), Amazon, Apple, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, Apple, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Breville Group Ltd (ASX: BRG) share price is trading lower on Friday.

In morning trade, the appliance manufacturer’s shares are down 2% to $26.43.

This is despite Breville announcing a key acquisition this morning.

What did Breville announce?

This morning Breville announced that it has entered into an agreement to acquire 100% of the Italian-based prosumer specialty coffee group, Lelit. The transaction is expected to complete by early July 2022 following a pre-acquisition restructure of the Lelit Group.

According to the release, Lelit was founded in Castegnato, Italy in 1985. It designs, manufactures, and markets premium prosumer home coffee equipment in Europe and throughout the world.

Management believes that as a rapidly growing disruptor in the premium Italian-made espresso machine and grinder market, Lelit strategically complements Breville’s award-winning coffee portfolio. It also notes that it brings together two iconic companies in the design and distribution of preeminent home coffee equipment.

Breville Group’s CEO, Jim Clayton, commented: “The acquisition of Lelit brings together the two great coffee cultures of the world: Italy and Australia. Both companies have a shared passion for using product innovation to improve our customers’ coffee experience at home, and we look forward to working alongside LELIT and its existing partners to further accelerate its growth and product innovation, while preserving the values that underpin its Italian identity.”

What’s the cost?

The release notes that Breville will acquire 100% of Lelit from the founders and current owners on a cash and debt free basis for a total consideration of approximately 113 million euros, subject to customary settlement adjustments.

This will comprise half in cash and half by the issue of fully paid ordinary shares in Breville priced at $27.64 per share. The latter will be subject to a five-year trading lock post completion. The cash portion will be funded from existing cash reserves and debt facilities.

Strangely, no details have been provided on Lelit’s sales or profits, nor whether the deal is expected to be earnings accretive. As a result, this makes it impossible to know if this deal is good value or not.

In light of this, it isn’t a surprise to see the Breville share price trading lower on the news.

The post Breville (ASX:BRG) share price falls despite 113m euros coffee acquisition 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 Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Up one day, down the next: Electric vehicle leader Tesla (NASDAQ: TSLA) stock is falling again Thursday, down by 5% as of 12:46 p.m. ET.

And you can blame the analysts at Piper Sandler for that.

So what

The news around Tesla Thursday has been broadly positive, after all. Analysts at megabank Citigroup announced that based on data from Citi’s proprietary “EV mind-share tracker,” Tesla’s electric cars “dominate the broader EV market.” This is despite rising competition from the EV offerings of legacy automakers such as Kia, Hyundai, Ford Motor Co., and General Motors, reports StreetInsider.com.

Citi also reported that interest in once-red-hot rival EV upstart Rivian has slumped since that company’s price-hike fiasco earlier this month. The bank says Tesla leads the pack with 45% “mind share,” with Ford, Kia, and GM its closest (yet not even close) rivals.

All of the above, of course, should have been good news for Tesla and its stock, but for one thing: According to analysts at Piper Sandler, Tesla’s high profile brings with it unique geopolitical risks — particularly in China — that could damage its stock price.

Now what

As Piper Sandler explains, there are pluses and minuses to Tesla’s China business. On the plus side, its Shanghai factory is going great guns, producing 56,515 cars in February, of which nearly 60% got exported. With production accelerating, Piper Sandler foresees Tesla producing perhaps 70,000 cars in China in March — and as many as 193,000 or more in all of Q1.  

That’s the good news. Now here’s the bad.

The bigger Tesla’s business in China gets, the more of a potential liability it becomes in the event of continued “deteriorating US-China relations.” As Piper explains, “If American companies are eventually used as pawns in a wider geopolitical conflict, then Tesla shareholders would likely suffer.”

Granted, Piper’s only highlighting a potential problem here. China doesn’t seem to be using Tesla as a pawn right now. But the Chinese government has criticized Tesla in the past, has a history of promoting its domestic companies over foreign rivals, and — for that matter — hasn’t shied away from crushing entire industries within its own economy when that was deemed a reasonable way to pursue other policy goals.

Piper Sandler is right to highlight the risk — even if Tesla investors might not appreciate it right at the moment. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock tanked today appeared first on The Motley Fool Australia.

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Rich Smith has no position in any of the stocks mentioned. Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. 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 Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The ASX share market continues to be volatile, which gives investors the opportunity to buy ASX growth shares at cheaper prices.

Businesses that are still growing revenue whilst the share price falls could be an idea for investors to look at. The experts have identified two ASX businesses that have loads of growth potential for the long-term.

After a heavy sell-off since the start of the year, these two ASX growth shares have been picked by analysts:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is the leader of Australia’s online homewares and furniture retailing industry. It has a long-term goal of becoming the largest, online or offline.

It sells hundreds of thousands of products. Plenty of those are shipped directly by the supplier, which decreases inventory risk for the ASX growth shares and also allows it to offer customers a wider range on the website. Temple & Webster also has a growing private label range, which typically comes with a higher profit margin.

Despite all of the impacts of COVID-19 on the supply chain and other effects, Temple & Webster has managed to keep growing revenue very quickly. The FY22 first-half revenue was up 46% year on year. It was a 218% increase of revenue over two years.

The growing scale increases the operating leverage, allowing the company to accelerate investment in future growth and take market share. Some areas for re-investment include marketing, technology development, product range and the overall customer experience.

The increased scale provides cost advantages in product sourcing, logistics and marketing.

The ASX growth share is working on growing its presence in ‘trade and commercial’ as well as ‘home improvement’. The company says that the home improvement category adds another $16 billion to its addressable market.

Temple & Webster is currently rated as a buy by the broker UBS with a price target of $11.80.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a leading breast screening medical technology business. It is growing its focus and abilities with ‘risk’ for the patient to maximise the chance of finding breast cancer early.

It is utilising its 49 million images, which is one of the world’s biggest data sets of breast x-rays, to change from screening for detection to prevention.

The Volpara share price has fallen by a third since the start of the year. But the company continues to grow.

In the company’s FY22 half-year result its gross profit margin was 91.4%.

It has also made an initial investment into RevealDx, a lung AI company based in Seattle, and signed a collaboration agreement with Riverain Technologies, positioning Volpara for lung screening expansion.

The company’s average revenue per user (ARPU) continues to grow – it was US$1.46 in the first half of FY22 and increased to US$1.47 in its third quarter. The third quarter saw average ARPU deals of US$1.65.

The ASX growth share has a market share of 35% of US women being screened. Third quarter revenue was NZ$7 million, up 50% year on year. It’s on track to meet annual revenue guidance for the year of NZ$25 million. Annual recurring revenue has now reached NZ$30.4 million.

It’s currently rated as a buy by the broker Morgans, with a price target of $1.94.

The post 2 ASX growth shares to buy this month: experts appeared first on The Motley Fool Australia.

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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. owns and has recommended Temple & Webster Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. 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 Bruce Jackson.

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