Category: Stock Market

ASX dividend shares that have yields of more than 4% could be attractive options for income.

It is tricky to find higher yields at the moment because of how low central bank interest rates are.

However, some compelling businesses might be an option to boost investment income:

Inghams Group Ltd (ASX: ING)

Inghams is a large business in the poultry sector. Readers may know the company’s products from seeing them at the supermarket.

It has been suffering from some headwinds, which may have sent the Inghams share price down by more than 10% over the last three months. Lockdowns and COVID-19 could have caused an impact to the business in the first half of FY22. There is also a question about inflation and costs, such as grain.

The business has a dividend policy target of between 60% to 80% of underlying net profit after tax. In FY21 it increased its dividend by 17.9%, paying 16.5 cents per share – this represented a dividend payout ratio of 71% of underlying net profit.

Inghams is currently rated as a buy by the broker Citi with a price target of $4.55. That’s a potential increase of around 30% over the next year.

The ASX dividend share is working on a number of initiatives to be more profitable including driving lower costs, enhancing yield and reducing waste. It’s also working on improving its branded and private label products, as well as launching plant-based products.

In FY22 and FY23, Inghams is expecting to pay a grossed-up dividend yield of 7.3% and 8.4% respectively.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current is a global multi-boutique asset manager that invests in other asset managers that are looking to grow over the long-term.

It has stakes in 15 investment outfits across US, Europe, Asia and Australia. Some of the names in the portfolio include GQG Partners Inc (ASX: GQG), Carlisle Management, Proterra Investment Partners, Aether, Victory Park Capital and Astarte Capital Partners.

This business continues to see its total funds under management (FUM) grow. In FY21, FUM increased 52% to A$142.3 billion. At 30 September 2021 it had reached A$150.1 billion. Excluding GQG, aggregate FUM increased 9% year on year in FY21 and another 7% in the three months to September 2021.

The rising FUM is helping increase the management fee profitability (excluding performance fees). In FY21, management fee profitability increased by 25% compared to FY20.

It’s expecting continued improvement in corporate and boutique prospects in FY22, as well as access to a new credit line and/or dedicated external pools of capital in FY22. Management have provided guidance of higher revenue and profit in FY22 even without new investments or being able to recognise a full year of earnings from GQG after it recently listed.

Pacific is currently rated as a buy by Ord Minnett, with a price target of $10.30. It thinks that the ASX dividend share will pay a grossed-up dividend yield of 7.3% in FY22 and 8.2% in FY23.

The post 2 ASX dividend shares that could be buys with yields above 4% 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. 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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Looking for investment ideas in January? Listed below are a couple of shares that are rated highly by analysts right now.

Here’s what you need to know about them:

A2 Milk Company Ltd (ASX: A2M)

The team at Bell Potter believe the A2 Milk share price is in the buy zone after a horrific time in 2021. The broker believes the infant formula company has the potential to deliver very strong earnings growth in the coming years as it recovers from the pandemic.

Bell Potter has a buy rating and $7.70 price target on A2 Milk’s shares. This compares very favourably to the current A2 Milk share price of $5.46.

The broker said: “We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. The catalyst to regaining lost English label sales is likely to be boarder reopening and the return of international students. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

Treasury Wine Estates Ltd (ASX: TWE)

This wine company is rated highly by the team at Morgans. Its analysts currently have an add rating and $14.06 price target on its shares.

The broker believes its shares are trading at an attractive level and was pleased with its recent acquisition of Frank Family Vineyards. It suspects the latter could lead to its margin expanding quicker than expected.

Morgans said: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However once it comps China earnings, we expect TWE to deliver strong earnings growth from the 2H22 onwards. Organic growth will be supplemented by M&A. On this front, we view TWE’s recent acquisition of Napa Valley luxury wine business, Frank Family Vineyards (FFV) as strategically important. This high margin business should see TWE achieve its US margin target two years earlier than planned. We see recent share price weakness as a great buying opportunity in this high quality company. The stock is currently trading at a material discount to its long term PE range.”

The post Analysts tip A2 Milk (ASX:A2M) and this share as buys appeared first on The Motley Fool Australia.

More reading

• How did the Treasury Wine (ASX:TWE) share price perform in 2021?
• Morgans names 2 blue chip ASX 200 shares to buy
• Down 50%: Broker tips A2 Milk (ASX:A2M) and this ASX share to rebound in 2022
• In the ‘dog basket’: 6 ASX shares that could rebound in 2022
• Leading brokers name 3 ASX shares to buy

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 recommended A2 Milk and Treasury Wine Estates 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the year in a disappointing fashion. The benchmark index fell 0.9% to 7,444.6 points.

Will the market be able to bounce back from this on Tuesday and start the year on a positive note? Here are five things to watch:

ASX 200 futures pointing lower but…

The Australian share market is set to return to trade this morning in a disappointing fashion. According to the latest SPI futures from New Year’s Eve, the ASX 200 is expected to open the day 1% or 88 points lower. Though, that could all change once the strong start to the year on Wall Street is taken into account. In late trade, the Dow Jones up 0.5%, the S&P 500 is up 0.45%, and the Nasdaq is trading 0.95% higher.

Apple becomes a US$3 trillion company

Following a strong night of trade on the tech-focused Nasdaq index, tech behemoth Apple has seen its shares rise to a level that gives it a US$3 trillion company. The iPhone maker is the first company to achieve this milestone.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good start to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.75% to US$75.79 a barrel and the Brent crude oil price has risen 1.15% to US$78.66 a barrel. This appears to have been driven by news that Libyan output will drop 200,000 barrels per day for one week due to pipeline maintenance.

Gold price sinks

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could start the week in the red after the gold price dropped. According to CNBC, the spot gold price is down 1.5% to US$1,801 an ounce. The gold price slipped amid the strength in equities.

Iron ore price rises

It could be a good day for BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares on Tuesday following a rise in the iron ore price. According to Metal Bulletin, the spot benchmark iron ore price has risen 1.3% to US$122.26 a tonne.

The post 5 things to watch on the ASX 200 on Tuesday 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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Looking for some small cap shares to add to your watchlist? Then have a look at the three listed below.

Here’s why they could be worth getting better acquainted with:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets. The company’s cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics. Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies’ shares.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. It provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. ELMO has been a strong performer in recent years and looks well-placed in the future. This is due to acquisitions and favourable industry tailwinds. Morgan Stanley has an outperform rating and lofty $7.80 price target on its shares.

Serko Ltd (ASX: SKO)

Serko could be a small cap share to watch. It is an online travel booking and expense management provider with a number of quality solutions which have significant market opportunities. Another positive is that it recently signed a deal with travel booking giant Booking.com. This has the potential to be a game-changer over the coming years. Ord Minnett recently put a buy rating and $8.10 price target on Serko’s shares.

The post 3 small cap ASX shares to watch in January appeared first on The Motley Fool Australia.

More reading

• Are these 2 impressive ASX shares buys for 2022?
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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. owns and has recommended Elmo Software and Serko Ltd. The Motley Fool Australia owns and has recommended Elmo Software. The Motley Fool Australia has recommended Serko 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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There are a large number of ASX shares to choose from on the Australian share market.

Three that come highly rated are listed below. Here’s why these ASX shares are being tipped as buys:

Healius Ltd (ASX: HLS)

The first ASX share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers offering services. Thanks largely to elevated demand for COVID-19 testing, during the first quarter, Healius reported a 43.7% increase in group quarterly revenue over the prior corresponding period to $689.9 million. And with testing demand remaining strong because of the Omicron variant, the company looks well placed to deliver a very strong result in FY 2022.

This went down well with the team at Macquarie. The broker has an outperform rating and $5.65 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX share to look at is Life360. It operates in the digital consumer subscription services market and has a focus on products and services for digitally native families, where all members of the household are connected by smartphones. A whopping 33.8 million monthly active users are using its app, which is underpinning stellar recurring revenue growth. The company also has significant opportunities to monetise its user base further in the future.

Bell Potter is bullish on Life360. It has a buy rating and $15.25 price target on the company’s shares.

SEEK Limited (ASX: SEK)

This job listings company could be another ASX share to buy. Although SEEK was hit hard initially by the pandemic it has bounced back very strongly. SEEK reported a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax (excluding significant items) to $141 million in FY 2021. Pleasingly, it looks set to build on this in the coming years as the Australian economy recovers from COVID-19.

Credit Suisse is a fan and has an outperform rating and $39.50 price target on its shares.

The post 3 fantastic ASX shares to buy this month appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Life360, Inc. and SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has recommended SEEK 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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There aren’t too many ASX shares around that have major growth plans over the coming years. But the ones that do could be attractive potential opportunities.

Businesses that are smaller in size compared to a blue chip can have much more growth potential because they’re starting off at a much smaller point.

These two ASX shares could be very good options:

City Chic Collective Ltd (ASX: CCX)

City Chic is a leading ASX retail share that specialises in selling clothes, footwear and accessories to plus-size women.

It has a variety of brands for different products and markets including City Chic, Avenue, City Chic, Evans, Hips & Curves and Fox & Royal.

Since 22 November 2021, the City Chic share price has actually dropped by 15%, presenting a better value entry point for investors.

Plenty of investors like this ASX share at the moment, including the brokers UBS and Morgan Stanley which both have share price targets that are around 20% higher than where the Webjet share price is today.

A large part of the company’s earnings comes from online sources. In FY21, online sales made up 73% of its total revenue. Its online sales grew by 49.3% last financial year.

The company is working on a number of initiatives including expanding and executing on marketplace partnerships in all regions, increasing market share in the US, integrating its European Navabi acquisition and introducing its wider product range to the European market, and reviewing more acquisition opportunities.

The latest City Chic share price is valued at 28x FY23’s estimated earnings according to UBS.

Webjet Limited (ASX: WEB)

Webjet is a large travel ASX share that offers services for the public and also business to business services (WebBeds).

The company sees significant growth opportunities in all of its businesses as global travel markets start to reopen.

WebBeds is on track to be 20% more cost efficient when at scale. In November, Webjet said that WebBeds had been profitable since July thanks to domestic North American and European markets.

The ASX share sees increasing market opportunities for WebBeds with channel expansion, targeting previously untapped domestic markets and increasing market share in North America.

When WebBeds gets back to scale, it’s targeting an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 62.5%. This translates to EBITDA being 5% of total transaction value (TTV).

Management thinks the Webjet online travel agency (OTA) segment has market share growth potential thanks to consumer preferences shifting to online as well as investing in international opportunities.

Whilst the Omicron COVID-19 variant may have changed the situation a bit, Webjet noted that in November 2021 its TTV was tracking at 63% of pre-COVID times and bookings were tracking at 69% of pre-COVID levels, with many larger markets yet to open.

Webjet thinks that the business to business TTV market value is now more than A$70 billion and it’s targeting a market share of 14% of this (up from 4% in FY19). In dollar terms, it is targeting $10 billion of TTV.

This ASX share is a buy according to UBS, which has a price target of $6.85 on the business. That implies a potential upside of more than 30% over this year.

The post Potential buys: 2 excellent ASX shares appeared first on The Motley Fool Australia.

More reading

• Why is the Webjet (ASX:WEB) share price underperforming Helloworld in December?
• How are ASX 200 travel shares faring over the holiday season?
• ASX travel shares in focus on global flight cancellations
• These are the 10 most shorted ASX shares
• Why AMP, Hipages, Pilbara Minerals, and Webjet shares are storming higher

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 recommended Webjet 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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The Qantas Airways Limited (ASX: QAN) share price failed to take off in 2021. It was no secret that the company struggled with most of its operations halted due to COVID-19.

Since the beginning of the year, the airline operator’s shares moved marginally higher, up 2%. In comparison, the S&P/ASX 200 Index (ASX: XJO) gained roughly 13.5% over the same period.

For the final day of 2021, Qantas shares closed flat at $4.98 apiece. It’s worth noting that in early November, its share price touched a 52-week high of $5.97 before treading lower.

What happened with the Qantas share price?

The volatility in the Qantas share price in 2021 has been driven by uncertainty relating to the recovery of the travel market.

Earlier this year, Australia effectively managed to control the spread of COVID-19. This led to the company taking advantage of the strong interest in consumers wanting to travel domestically.

During March and April, investors scrambled to buy Qantas shares which led to a sharp and sudden ascent.

However, things turned sour when outbreaks of COVID-19 began to prop up across the country. This caused Qantas to forcefully ground its domestic fleet as several states went into hard lockdowns.

The turmoil drove investors to the exits, sending the airline’s shares to a 52-week low of $4.20 in August.

Fast-forward to November, the outlook for the travel industry became rosy again as COVID-19 had been on a steady decline. Furthermore, the Australian government’s re-opening of international travel excited investors.

The company brought back several planes from deep storage to meet the expected surge in demand for travel.

But yet again, a new variant of COVID-19, Omicron caused widespread panic across the globe. As such, several counties have gone back into lockdown, and Australia has re-reintroduced restrictions because of the record number of cases.

Is this a buying opportunity?

The good news for investors is that a number of brokers believe that the Qantas share price is attractively valued.

Multinational investment bank, Citi cut its price target by 1.2% to $5.86. Although this is a reduction, it implies an upside of almost 18% over the next 12 months.

In addition, JPMorgan also slashed its outlook by 3.1% to $6.30 a pop. This represents a potential upside of 26% from where it trades today.

Following suit, Swiss investment firm, UBS lowered its assessment on Qantas shares by 3.1% to $6.20. Its analysts clearly believe that there is still significant value in the airline and that a recovery is inevitable.

The post How did the Qantas (ASX:QAN) share price perform in 2021? appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy
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• How are ASX 200 travel shares faring over the holiday season?
• ASX travel shares in focus on global flight cancellations
• 3 excellent ASX 200 blue chip shares to buy in 2022

Motley Fool contributor Aaron Teboneras owns Qantas Airways Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retailer.

Accent is the name behind a growing stable of retail chains. This includes The Athlete’s Foot, Platypus, Stylerunner, HypeDC, Glue, Sneaker Lab, and Merrell to name just a few.

Thanks to the popularity of these brands with consumers and their wide and growing footprint, Accent appears well-placed to continue its growth over the long term. This could bode well for dividend payments in the coming years.

The team at Bell Potter expects fully franked dividends per share of 9.1 cents in FY 2022 and then 13.5 cents in FY 2023. Based on the latest Accent share price of $2.45, this represents yields of 3.7% and 5.5%, respectively.

Bell Potter has a buy rating and $3.05 price target on its shares.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is this supermarket, convenience, and liquor store operator.

It could be a top option for income investors due to its favourable dividend policy (paying upwards of 90% of profits as dividends) and positive outlook. In addition, as we have seen during the pandemic, Coles has defensive qualities that can be very valuable during volatile times.

One broker that is a big fan of Coles is Citi. Its analysts have a buy rating and $19.60 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 65 cents per share in FY 2022, 72 cents per share in FY 2023, and then 77 cents per share in FY 2024. Based on the current Coles share price of $17.94, this will mean yields of 3.6%, 4%, and 4.3%, respectively.

The post Analysts name 2 top ASX dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• Here are 2 ASX dividend shares to buy in 2022
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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 owns and has recommended COLESGROUP DEF SET. 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 Bruce Jackson.

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A few different exchange-traded funds (ETFs) may be able to provide investors with a high level of attractive diversification.

It can be tricky to choose which investments to go for. One option might be to choose ETFs, which can give investors diversification because they are invested in dozens or even hundreds of businesses in a single investment.

Every ETF is different. Some focus on ASX shares. There are industry-specific ones. These two may be able to provide attractive diversification:

iShares S&P 500 ETF (ASX: IVV)

Warren Buffett himself has recommended to (predominately American) investors that they should look at a S&P 500 fund:

I recommend the S&P 500 index fund and have for a long, long time to people.

If you just had a diversified group of equities, U.S. equities, that would be my preference, but to hold over a 30-year period.

I just think that the best thing to do is buy 90% in S&P 500 index fund.

What is the S&P 500? It’s 500 of the biggest businesses that are listed in the US, with both NASDAQ and New York Stock Exchange businesses.

There is a lot of diversification by having 500 holdings. However, the top ten positions represented around 30% of the portfolio at 30 November 2021: Apple, Microsoft, Amazon.com, Tesla, Alphabet (class A and C shares), Nvidia, Meta Platforms (Facebook), Berkshire Hathaway and JPMorgan Chase.

Past performance is not a reliable indicator of future performance, but this S&P 500 ETF has performed strongly over the last five years thanks to the underlying holdings with a net return per annum of 18.6%.

This investment has one of the lowest management fees of any ETFs on the ASX, at 0.04% per year.

Vanguard Msci Index International Shares ETF (ASX: VGS)

There are both similarities and differences between this ETF and the S&P 500 one.

Looking at the top holdings, there are many similar names. In-fact, at the end of November 2021, the only two different names in the Vanguard portfolio’s biggest holdings were Home Depot and UnitedHealth.

However, a key difference is the fact that the Vanguard Msci Index International Shares ETF is invested in the global share market across the ‘developed’ world.

Obviously the US is the dominant allocation, but other countries also have weightings of at least 1% including Japan, the UK, Canada, France, Switzerland, Germany, the Netherlands and Sweden.

This ETF actually owns almost 1,500 businesses in the portfolio. The smaller positions do not have much effect on the overall ETF performance, but the diversification is there.

Some of the biggest non-US shares in the portfolio includes Nestle, ASML, Roche, LVMH, Toyota, Novo Nordisk, Novartis and Shopify.

Whilst Vanguard Msci Index International Shares ETF hasn’t performed as well as the S&P 500 fund over the last five years, it comes with increased diversification and as a reminder, past performance is not a reliable indicator of future performance. The past five years has seen an average net return per annum of 15.8%.

Vanguard Msci Index International Shares ETF has an annual management fee of just 0.16% per annum.

The post 2 of the best ETFs for diversification appeared first on The Motley Fool Australia.

More reading

• Here are 3 top ETFs for ASX investors in 2022
• Could 2022 be a good year for the Vanguard International Shares ETF (ASX:VGS)?
• 2 highly rated international ETFs for ASX investors

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 ETF. 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 Treasury Wine Estates Ltd (ASX: TWE) share price had a bumper year in 2021. The company is Australia’s largest wine company and a huge global player.

Shares in the winemaker flowed steadily to finish the year at $12.38, up nearly 32%. In comparison, the S&P/ASX 200 Index (ASX: XJO) returned 13%.

Let’s delve into the significant events that may have influenced the Treasury Wine share price movement this year.

What impacted the Treasury Wine share price this year?

Treasury Wine Estates boasts household names in popular Australian wines including Penfolds, Beringer, Lindemans, Wolf Blass and Rosemount Estate.

Overall, investors showed an outpouring of support for the winemaker, sending the company’s share price higher in a few bursts during the year.

Looking back at 2021, we see that February provided a major boost for shareholders. Company shares jumped more than 20% from $9.90 to $11.91 between market close on 16-18 February.

Investors responded positively to the 2021 interim results announcement. Despite underlying net profit after tax declining 24%, shareholders reacted well to the update. Net debt was down $403.7 million while the company declared a dividend of 15 cents per share.

May was also a superb month for the Treasury Wine share price. Shares exploded 11.46% between the close on May 12 and May 17 after an investor presentation. At the time, the company revealed its goal to drive growth, profit, efficient capital usage and strong shareholder returns.

The company’s share price also jumped in August after the company changed its dividend distribution to 13 cents per share and reported strong annual results.

For the 2021 financial year, Treasury Wine boosted its net profit after tax by 2%, up to $250 million. As my Foolish colleague James reported, the main driver of growth in the FY 2021 was the company’s North America business with strong support from its operations in Australia and New Zealand business. Shares hit a yearly high of $13.20 the day after these results were reported.

Shares in the company also soared almost 7% between the close on 17 November and 19 November off the back of two announcements.

The first was when Treasury Wine revealed it would acquire Frank Family Vineyards in California’s Napa Valley for $432 million. The company then hit the headlines on news its Penfold brand would partner with Blockbar to produce non-fungible tokens (NFTs). Blockbar is a leading NFT marketplace for luxury wines and spirits.

Foolish takeaway

The Treasury Wine share price performed 18% better than the S&P/ASX 200 Index (ASX: XJO) in 2021.

Shares in the company were up 3.86% in the final month of the year.

The company has a market capitalisation of more than $8.9 billion based on the current share price.

Finally, as Motley Fool Australia reported on Friday, the team at Morgans believes the winemaker’s shares are undervalued given its recent restructuring. The broker is positive on the company’s future and has a $14.06 price target on the Treasure Wine share price.

The post How did the Treasury Wine (ASX:TWE) share price perform in 2021? appeared first on The Motley Fool Australia.

More reading

• Morgans names 2 blue chip ASX 200 shares to buy
• Leading brokers name 3 ASX shares to buy
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• Leading brokers name 3 ASX shares to buy today
• Treasury Wine Estates (ASX:TWE) share price lifts amid latest green push

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 Treasury Wine Estates 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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