Category: Stock Market

Technology shares have had a wild ride this year on the back of the post-COVID reopening, then the Delta lockdowns — then reopening again.

All throughout, the debate about inflation and interest rates has raged on, making for a volatile experience for ASX tech shares.

November was no different, with the COVID-19 Omicron variant sneaking in at the end of the month to add another twist to the tale.

According to The Motley Fool analysis, 4 tech shares among those in the S&P/ASX All Technology Index (ASX: XTX) stood out for double-digit percentage gains last month:

ASX share	November price change
EML Payments Ltd (ASX: EML)	19.32%
Megaport Ltd (ASX: MP1)	16.92%
Altium Limited (ASX: ALU)	14.11%
Link Administration Holdings Ltd (ASX: LNK)	12.41%

That’s a great effort considering the All Tech index itself was down 0.9% for the month.

Let’s take a quick look at each:

The luck of the Irish

There is no guesswork in working out how EML rose so spectacularly in November. 

The morning of 25 November saw it announce that the Central Bank of Ireland (CBI) had dialled down regulatory concerns over EML’s PFS Card Services subsidiary, and would allow it to sign new customers.

Shares in the payments provider rocketed more than 30% that day.

Fund managers are loving the look of EML at the moment. UBS, for example, has a target of $4.40, compared to the Wednesday afternoon price of $3.48.

Seven out of 9 analysts rate the stock as a strong buy, according to CMC Markets.

Meanwhile, software firm Altium made more steady progress upwards over the past month.

On 18 November, the company held its annual general meeting. The information provided there was received warmly by investors, sending the stock up more than 5% that day.

Despite this, professional investors are unsure about where the former market darling is headed.

According to CMC Markets, 6 of 10 analysts rate Altium shares as a hold, while the buy and sell camps hold 2 votes each.

Takeover-a-thon for Link shares

Link Administration’s big catalyst was on 5 November, when its shares shot up more than 8.5% after a private takeover approach was disclosed.

A smaller jump came on 12 November as its Banking and Credit Management business received an acquisition offer from a European consortium. That pushed the shares 3.5% up for the day.

Professional investors are generally in favour of Link’s direction, as CMC Markets shows 6 of 8 analysts rate its shares as a strong or moderate buy.

Software-defined network services provider Megaport has rewarded its backer handsomely in recent times. Specifically, 54% over the past 12 months and almost 800% over the last 5 years.

And November was another stellar month for the technology stock, repeatedly breaking its 52-week highs.

The share price sat at $20.78 at the close on Wednesday afternoon, while Macquarie analysts last month thought it could eventually hit $24.

The post 4 best-performing ASX tech shares in November appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares rated as strong buys by top brokers
• These were the 5 best performing ASX 200 shares in November
• Is Altium (ASX:ALU) still a takeover target at the current share price?
• Why EML Payments, Pact, Senex, and Webjet shares are dropping
• These were the best performing ASX 200 shares last week

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. owns shares of and has recommended Altium, EML Payments, Link Administration Holdings Ltd, and MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Despite turbulent times with the COVID-19 Omicron variant emerging, there is one particular ASX technology stock that numerous experts have their money on currently.

San Francisco outfit Life360 Inc (ASX: 360) makes software that allows parents to track teenagers, although through new products and acquisitions it is quickly diversifying from that use-case.

After listing on the ASX in May 2019, it was a tough couple of years for shareholders as the business struggled to capture the market’s attention.

But that’s all changed this year, with the Life360 shares soaring by more than 210%.

Even with Monday’s Omicron-triggered sell-off, the Life360 stock price managed to gain 1.7% to trade for $12 in the afternoon.

Despite the ballooning valuation, why is this stock still so attractive?

Users are hooked, and so is Zuckerberg

Wilson Asset Management portfolio manager Tobias Yao is impressed by how hooked Life360 users are to the software.

“Despite having over 30 million active customer users, its user engagement is really high,” he said in a Wilson video.

“The users love the utility and love the product. That’s very important for a freemium model like Life360.”

According to Yao, his fund was initially prompted to buy Life360 shares earlier this year when a famous name was appointed to its board.

“It was on the back of the appointment of Randi Zuckerberg, sister to Mark Zuckerberg and one of the early Meta Platforms Inc (NASDAQ: FB) employees,” he said.

“Given her profile, and the amount of opportunities that would come across her desk, we thought it was a huge vote of confidence that she decided to choose Life360.”

And despite the spectacular rise this year, Yao reckons Life360 shares are still pretty cheap.

“The valuation is actually undemanding relative to many of its international peers,” he said.

“We think the share price still has material upside driven by continued top-line growth — as well as multiple expansion on the back of people getting more comfortable with the growth story.”

Life360 shares are still cheaper than peers

Another bull for Life360 is Tribeca Investment Partners portfolio manager Simon Brown.

He told The Motley Fool’s ‘Ask A Fund Manager’ earlier this month that it was among the 2 biggest holdings for his Smaller Companies fund.

“It’s done incredibly well for us and it remains our largest stock and we remain really supportive and are very confident that it continues to present plenty of upside from here.”

Bell Potter analysts are also fans, this month setting a target price of $14.75 for Life360 shares with a “buy” rating.

As The Motley Fool reported, Bell Potter compared it with a similar company in the US that recently listed — and found Life360’s valuation much more palatable.

“Nextdoor Holdings Inc (NYSE: KIND) stock is now trading on an EV/revenue multiple of circa 23x based on the mid-point of the upgraded 2021 guidance and this compares to a multiple of circa 13x for Life360 based on our 2021 revenue forecast of US$111 million,” the memo read.

“The multiple of Nextdoor is therefore significantly higher than that of Life360 even though, in our view, Life360 is a higher quality company given it generates most of its revenue through subscription whereas Nextdoor generates most of its revenue through advertising.”

The post Why multiple experts are HOT on this ASX tech share right now appeared first on The Motley Fool Australia.

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• Why Creso Pharma, Hansen, Life360, and Serko shares are falling
• Why the Life360 (ASX:360) share price is sinking 9% today
• Top brokers name 3 ASX shares to buy today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns shares of Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc. and Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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 Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 7,235.9 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% lower this morning. This follows a mixed night on Wall Street, which in late trade sees the Dow Jones up 0.1%, the S&P 500 up 0.3%, and the Nasdaq down 0.2%. US markets were up materially until a case of Omicron was confirmed in the US.

Oil prices edge lower

Energy shares including Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could have a subdued day after oil prices edged lower overnight. According to Bloomberg, the WTI crude oil price is down 0.4% to US$65.90 a barrel and the Brent crude oil price has fallen 0.25% to US$69.06 a barrel. Concerns over a looming supply glut weighed on prices.

Cleanaway ACCC delays

The Cleanaway Waste Management Ltd (ASX: CWY) share price will be on watch today after it revealed that the ACCC has deferred its decision date for the clearance of the company’s acquisition of a portfolio of strategic post-collection assets in Sydney from Suez. However, management remains confident the deal will be approved despite the delay.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher. According to CNBC, the spot gold price is up 0.4% to US$1,783 an ounce. The gold price rose due to increased demand for safe haven assets amid omicron-induced volatility.

Premier Investments’ annual general meetings

Premier Investments Limited (ASX: PMV) shares will be in focus on Thursday. The retail conglomerate is holding its annual general meeting later today and could provide investors with an update on the performance of its brands so far in FY 2022.

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

More reading

• Here are the top 10 ASX shares today
• Why did the Woolworths (ASX:WOW) share price tumble today?
• Woodside (ASX:WPL) share price ends higher on Wednesday after energy giant vows to fight Pluto legal challenge
• ASX shares to buy for the Omicron COVID outbreak
• Why is the Rio Tinto (ASX:RIO) share price having such a great day?

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 Premier Investments 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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If you’re a fan of growth shares, then you may want to look closely at the three shares listed below.

Here’s why these could be growth shares to buy:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is one of the world’s leading appliance manufacturers and has been growing at a consistently solid rate for the last decade. The good news is that Breville has been tipped to continue this positive form in the future. This is thanks to the popularity of its brands, its international expansion, acquisitions, favourable consumer trends, and its continued investment in R&D.

Macquarie is very positive on the company. Last week the broker retained its outperform rating and $34.37 price target.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share to look at is this pizza chain operator. As with Breville, Domino’s has been growing at a consistently solid rate for over a decade. This has been underpinned by the popularity of its offering and the expansion of its footprint. Pleasingly, these trends aren’t changing any time soon. Domino’s pizzas remain as popular as ever and management sees significant room to grow its store network. In fact, it is aiming to more than double its footprint to 6,650 stores in existing markets by 2033.

Goldman Sachs is a fan of the company. It currently has a buy rating and $147.00 price target on Domino’s shares.

Hipages Group Holdings Ltd (ASX: HPG)

A final ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. At the last count, there were over 31,000 tradies using the platform. This is underpinning strong growth across all its key metrics. And while it is generating meaningful revenue at present, it is still only scratching at the surface of its huge market opportunity. This provides Hipages with a very long runway for growth.

Goldman Sachs is also very bullish on Hipages. It currently has a buy rating and $4.95 price target on its shares.

The post 3 top ASX growth shares to get bullish on appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in December 2021
• Here are the top 10 ASX shares today
• Own Domino’s (ASX:DMP) shares? Here’s how Pizza Hut is coming for a bigger slice of the pie
• Why Domino’s, Healius, Kogan, and Vulcan shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps

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 shares of and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Hipages Group Holdings 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 Adairs Ltd (ASX: ADH) share price ended up in the green today after finalising its acquisition of Focus on Furniture.

Despite a dismal start to the day, Adairs shares were up 0.28% trading at $3.60 at the close of Wednesday’s session. This compared favourably to the S&P/ASX 200 Index (ASX: XJO), which finished 0.28% lower.

Why is the Adairs share price holding up?

Adairs announced the $80 million dollar deal to acquire Focus on Furniture last week. Investors appeared to welcome the acquisition news, with shares in the ASX home furnishings company up 4.1% on 25 November compared to the previous close.

The debt-free acquisition will see Adairs pay $74 million in cash alongside a $6 million share placement to Focus CEO, Rob Santalucia, who will remain at the helm of Focus.

Adairs noted it now owned and operated 3 vertically integrated brands in the home retail category — Adairs, Mocka and Focus on Furniture.

Focus brings to the mix 23 stores in Australia with a revenue of more than $150 million in FY 2021. The company boasted revenue of more than $150 million in FY2021.

Adairs already has 160 stores across Australia and New Zealand and added some 950,000 customers to its loyalty program Linen Lovers as of the end of the 2021 financial year.

Adairs share price snapsot

The Adairs share price has climbed 12.85% over the past 12 months, despite ongoing COVID-19 lockdowns which have impacted some companies in the retail sector. Adairs shares are up 5.57% year to date.

The post What happened with the Adairs (ASX:ADH) share price today? appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in December 2021
• Here’s why ASX retail shares are in the spotlight on Tuesday
• Is the Adairs (ASX:ADH) share price a buy following the company’s latest acquisition?
• Leading brokers name 3 ASX shares to buy today
• Top brokers name 3 ASX shares to buy next week

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. 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 AGL Energy Limited (ASX: AGL) share price continues to trade around all-time lows as the end of 2021 inches closer. Though, the energy giant is getting ready for a fresh new look in the year to come. This will take shape in the form of the company’s planned demerger.

Between now and then, AGL is believed to be looking at ways of getting some more cash onboard. Considering the impacted profitability and free cash flow, additional capital will be needed to help the two demerged businesses in meeting their expenses.

For this reason, rumour has it that AGL Energy is looking at tapping the United States bond market for $500 million.

Where can you find a spare $500 million?

Ahead of the creation of AGL Australia and Accel Energy, sources suggest AGL is chasing $500 million.

Business changes usually come at a cost. Whether that involves restructures, acquisitions, or — in this case — demergers. Although, the main concern for the company seems to be the reasonably high level of debt.

According to reports, AGL Energy is looking overseas to the United States to put its balance sheet in better order. The Australian energy company is rumoured to be seeking $500 million through the US bond market. A number of investment banks including Bank of America, JPMorgan, and Citi are said to be on board with assisting in the deal.

It appears the energy retailer is not exploring an equity raise as an alternative. This idea was shot down by AGL chair Peter Botten in the company’s annual general meeting. Others have noted the difficulty that AGL might have had if it did opt for a capital raise given the weakness in AGL shares.

Furthermore, the rumoured deal is understood to be a part of the company’s debt refinancing. Although, some onlookers are concerned about increased debt levels.

Company debt was around $3.06 billion at the end of June 2021. Whereas, AGL’s equity came in at $5.5 billion — giving the business a debt to equity ratio of 55.6%. Above 40% is considered to be relatively high for a company.

AGL shares under pressure

It has been nothing but pain for AGL shareholders since April 2017, when the company reached an all-time high of ~$27 per share. Since then, it has been a bumpy ride to the downside as increased environmental scrutiny has plagued the energy provider.

Simultaneously, an uprising in renewable assets has pressured the wholesale price of electricity. In turn, AGL’s operations have been feeling a pinch. Both revenue and earnings have been in decline since mid-2020 as the company ploughs money into transitioning its business.

Finally, on a year-to-date basis, AGL shares have fallen 56%. For context, the S&P/ASX 200 Index (ASX: XJO) is up 10% over the same period.

The post Own AGL (ASX:AGL) shares? Here’s how the company could be set to raise $500m appeared first on The Motley Fool Australia.

More reading

• Why is the Origin (ASX:ORG) share price outperforming AGL in November?
• Here’s why this top broker is tipping 40% upside for the AGL (ASX:AGL) share price
• Does the AGL share price really offer a 14% dividend yield?
• The AGL (ASX:AGL) share price has lost 8% so far this month. What’s next?
• The AGL (ASX:AGL) share price is at all-time lows. Here’s why this fundie still thinks it’s poor value

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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Shares in meal-kit service Marley Spoon AG (ASX: MMM) struggled through most of Wednesday, but came out on top after nudging past yesterday’s closing price.

Marley Spoon shares started the day flat before trading as low as 80 cents during intraday trading. They finished the day at 82 cents apiece, up 0.62%.

It’s been a bumpy ride down south for the company these past few months, and shares are now trading at 3-month lows after coming off a high of $2.09 in September.

The Marley Spoon share price is now down 20% for the month as a result, and lags the benchmark S&P/ASX 200 Index (ASX: XJO) by a considerable amount in that time.

What’s up with Marley Spoon shares lately?

Investors began selling Marley Spoon shares in droves again in October when the company released its update for the quarter ending 30 September 2021.

During the 3 months, the company grew revenue 14% year on year to 79.2 million euro. It left the quarter with 33 million euro in cash on the balance sheet – a 17% jump from the previous year.

However, investors were quick to compare Marley Spoon’s H1 FY21 trading update – where sales grew by 38% – and its most recent results.

Investors were equally spooked by the company’s guidance downgrade. It now estimates a lower sales growth of 26%–28% compared to previous guidance of 30%–35% growth at the top line.

The company blamed its downward revision of guidance on “volatile customer behaviour” at the time, alongside “staffing challenges, higher labour rates, and food cost inflation”.

Nonetheless, investors violently sold off their Marley Spoon positions following the trading update, and the share price tanked in vertical fashion in the days afterwards. It hasn’t reversed course since.

Since then, the market hasn’t wanted a slice of Marley Spoon’s meal-kit service. For example, today total volume of Marley Spoon shares traded was at just 30% of its 4-week average volume. For comparison, the day before its trading update, it traded on a volume of 1.25 million shares.

Without the forward earnings guidance to bite into, it appears investors have left the Marley Spoon party and show no sign of returning any time soon.

Marley Spoon share price snapshot

It’s been a year of pain for Marley Spoon shareholders, with the share price collapsing 50.5% in the last 12 months. It has tanked 63.6% just this year to date.

These results are well behind the benchmark ASX 200 index’s return of around 10% in the last year.

The post The Marley Spoon (ASX:MMM) share price just hit another 52-week low. What’s going on? appeared first on The Motley Fool Australia.

More reading

• Own AGL (ASX:AGL) shares? Here’s how the company could be set to raise $500m
• Archer Materials (ASX:AXE) share price leaps 4% on biochip update
• Should Bank of Queensland (ASX:BOQ) shares be on your Christmas list? Here’s what top brokers think
• Here’s why the Worley (ASX:WOR) share price whirled lower today
• Here’s what happened with Bitcoin’s record-breaking November

The author has no positions in any of the stocks mentioned. The Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Marley Spoon AG. The Motley Fool Australia owns shares of and has recommended Marley Spoon AG. 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 Archer Materials Ltd (ASX: AXE) share price was charging ahead today following a technical progress update on the company’s biochip.

At market close, the Archer share price was 4.9% higher at $1.285.

Archer progresses biochip development

Investors were driving up the Archer share price today after the materials technology company announced a major breakthrough with its biochip technology.

In a release, Archer advises it has developed its first biochemical reactions for detecting nucleic acid sequences. This allows small droplets of biological samples to be processed and analysed using special sensor devices integrated within the biochip.

Nucleic acid markers are useful for monitoring a person’s health and determining if a disease is present. Commonly known techniques to analyse biological samples for nucleic acids include polymerase chain reaction (PCR). The techniques developed by Archer have special significance because COVID-19 is detected through PCR testing.

Last month, the company used advanced fabrication techniques to achieve features like hair-thin microfluidic channels. To put this in perspective, these channels are less than 20 micrometres in width (about 3x thinner than human hair).

The channels enable sample processing as well as transportation into smaller built-in sensors for analysing biochemical targets.

The latest development marks another milestone in Archer’s pursuit of commercialising its biochip technology.

Best-in-class capabilities in nanofabrication is a global competitive advantage in the multibillion-dollar point of care medical diagnostics industry. There are few companies developing and commercialising biochips because it’s difficult to achieve precision engineering at the nano scale.

What did Archer management say?

Archer CEO Dr Mohammad Choucair commented:

This is a significant achievement, as the Company has now, with its in-house capability, developed the biochemical foundations to potentially allow for future operations and applications of Archer’s biochip in the detection of various diseases.

There are few examples of lab-on-a-chip technologies that detect nucleic acids without the need for PCR. Archer’s biochemical processes could potentially allow for on-chip detection of pathogens, with several practical advantages, including eliminating cold-logistics supply chain requirements and the need for PCR, if favourable.

About the Archer share price

The Archer share price has surged by 138% in the past 12 months. However, the company’s shares are still more than 50% off their all-time high of $3.08 reached in mid-August.

Based on valuation grounds, Archer presides a market capitalisation of $318 million, with 247 million shares on issue.

The post Archer Materials (ASX:AXE) share price leaps 4% on biochip update appeared first on The Motley Fool Australia.

More reading

• Why the Archer Materials (ASX:AXE) share price is charging 5% higher

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 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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Shares in Bank of Queensland Limited (ASX: BOQ) have been on the downward slope these past 2 months. In fact, they have lost more than 21% in that time.

The bank’s share price tumbled off a 1 October closing high of $9.72 and hasn’t recovered since. Instead, Bank of Queensland shares have set lower-highs and lower-lows in that time.

Whereas the S&P/ASX 200 Financials Index (ASX: XFJ) has slipped more than 8% in the last month, the bank’s shares are down 13%.

In light of this, we’ve sifted through the scrolls of wisdom from the experts to try and understand what the outlook for Bank of Queensland investors might be this Christmas.

Here’s what we found from leading investment banks Jefferies and JP Morgan.

Is Bank of Queensland a buy for Christmas?

It depends on where you look and who you ask for this one. Analyst sentiment is spread thinly between bullish investors and those on the sidelines.

According to the team at Jefferies, however, perhaps not. The firm has a neutral rating on Bank of Queensland shares and values the bank at $7.50/share. At the time of writing, that implies a downside potential of around 2%.

Jefferies notes that Bank of Queensland’s estimates for strong housing growth accompanied by a contraction in net interest margin (NIM) by 0.05%–0.07% in FY22 are susceptible to risk.

Analysts at the firm commented that “it’s hard to think the BOQ NIM will not be similarly impacted” from risks other majors have faced, resulting in “NIM erosion” this year.

As such, the bank is Jefferies’ least-preferred name out of all the Australian majors.

Meanwhile, the team at JP Morgan has a different opinion on the direction of Bank of Queensland shares.

It notes the bank’s 2H FY21 cash earnings were 2% above internal estimates. It’s also satisfied with its FY22 guidance outlook.

JP Morgan reckons that Bank Of Queensland appears “well positioned to deal with industry headwinds”. It arrives at this stance partly due to near-term funding cost savings, which have further to fall than peers.

In addition, the firm sees potential for “optimisation in both its own deposit book and the funding mix of ME Bank.” and notes, “cementing improvements in broker channel performance and the digital offering to customers.”

The broker points to Bank of Queensland’s large valuation discount from its peers. It argues the market is not paying for “synergies from the ME Bank acquisition, albeit we acknowledge that this will require careful execution.”

In contrast to Jefferies, it likes Bank of Queensland the best out of all the majors alongside National Australia Bank Ltd (ASX: NAB). It slapped an outperform rating and $10 price target on the shares. That implies an upside potential of 31% at last check.

What’s the sentiment on BOQ’s share price?

In fact, of all the firms covering Bank of Queensland, 75% have it as a buy. Just 1 has it as a sell. The remainder are neutral on its share price.

Both Credit Suisse and Morgans are most bullish. These firm value Bank of Queensland at $11 per share and placing outperform and add ratings, respectively.

The consensus price target amongst this group is $9.62, in itself implying a margin of safety of 26% at the time of writing.

Evans and Partners disagrees, and reckons it is a sell with an $8 price target – a step above what Jefferies has the bank valued at.

So is Bank of Queensland one for under the Christmas tree this year? According to the bulk of analysts covering the share, most are bullish on the direction of its share price and recommend it as a buy.

However, analyst recommendations are only one drop in the bucket of investment reasoning one must undertake before making that decision. Remember to conduct your own due diligence before deciding whether it goes on your Christmas list.

The post Should Bank of Queensland (ASX:BOQ) shares be on your Christmas list? Here’s what top brokers think appeared first on The Motley Fool Australia.

More reading

• What’s JP Morgan saying about ASX 200 bank shares?
• Are Bank of Queensland (ASX:BOQ) shares really going to pay a 10% dividend yield?
• Here’s why Morgans tips 30% upside for the Bank of Queensland (ASX:BOQ) share price
• What is Bank of Queensland (ASX:BOQ) doing to compete with BNPL rivals?
• The Bank of Queensland (ASX:BOQ) dividend is being paid today. Here’s what you need to know

The author has no positions 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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Shares in industrial engineering solutions company Worley Ltd (ASX: WOR) edged 0.42% lower today as investors digested an investor presentation released by the company.

In its presentation, the company gave a broad level overview of its situation, its strategy and the total addressable market (TAM) it intends to position itself in.

Alas, here are some of the takeouts from Worley’s investor presentation today.

What did Worley present today?

In the presentation released to investors earlier, Worley covered its strategy moving forward into FY22 and beyond. The company detailed several of its growth areas and gave a high-level view of how it intends to get there.

For instance, Worley highlighted that it is partnering with Shell to produce sustainable aviation fuel and renewable diesel after Shell awarded the company a “significant low-carbon fuels services contract in The Netherlands”.

The facility is expected to be one of the biggest of its kind in Europe and will produce 820,000 tonnes of sustainable aviation fuel (SAF) and renewable diesel every year, Worley says.

With respect to its existing asset base, it intends on adapting assets by exploring solutions such as extending, repurposing, or decommissioning, plus will focus on sustainable solutions to improve efficiency.

Worley states the “foundation for growth” in this domain is built on approximately 200 projects in the “FY22 pipeline in adaptation, asset life management and systemic efficiency”.

The company also gave a broad overview of the Direct air capture (DAC) to fuels project. This venture is expected to be the first commercial scale project of its kind and is anticipated to produce “up to 100 million litres of ultra low carbon fuel annually”.

Aside from this, Worley also detailed its role at the Hu’u Project – a large high-grade copper and gold ore body in Indonesia. The site is owned by Vale S.A. and PT Aneka Tambang but is being studied by PT Sumbawa Timur Mining.

Worley has been appointed as the mining study manager with additional responsibility for reporting and estimating all contributors to the study.

Throughout the presentation – which was light on financials – Worley reiterated that its purpose was in “delivering a more sustainable world” whilst its ambition is to be “recognised globally as the leader in sustainability solutions”.

Worley share price snapshot

It’s been a horrendous year for Worley shareholders who are swimming in a sea of red across all time frames. In the past 12 months, the Worley share price has slipped over 27% after losing more than 17% this year to date.

In the past month alone, it has fallen over 12% and is also down 3% for the week. Needless to say, the Worley share price has lagged the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of around 10% in the last year.

The post Here’s why the Worley (ASX:WOR) share price whirled lower today appeared first on The Motley Fool Australia.

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The author has no positions 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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