Category: Stock Market

The Whispir Ltd (ASX: WSP) share price has been a very strong performer on Wednesday.

In morning trade, the cloud-based communications management systems platform provider’s shares are up 14% to $2.40.

Why is the Whispir share price rocketing higher?

Investors have been bidding the Whispir share price higher today following the release of an update on its guidance for FY 2022 ahead of its annual general meeting.

According to the release, Whispir now expects its revenue to be in the range of $64 million to $68 million in FY 2022. This represents a year on year increase of between 34% and 42%.

In addition, it is an improvement on its prior guidance of revenue in the range of $57.2 million to $60.2 million which was given just over a month ago.

But the good news doesn’t stop there. Whispir’s guidance for EBITDA excluding non-cash share-based payments for FY 2022 is now a loss of $11.2 million to $13.2 million. This compares to previous guidance for a loss of $13 million to $15.5 million.

What is driving this?

Management advised that Whispir is well positioned for growth in FY 2022, predicated by its book of long-term, blue chip clients.

It notes that several new business wins, including a sizeable customer in North America, provides confidence that the sales pipeline is strong, and the product is delivering to meet the changing needs of customers across the core regions of ANZ, Asia, and North America.

Commenting on the upgraded revenue and EBITDA guidance, Founder and CEO, Jeromy Wells said: “This improved forecast performance, in revenue and EBITDA, validates that our strategy is working. Our updated guidance also highlights the valuable role we’re playing in the delivery of COVID specific communications across our install base.”

“Our ‘return to work’ and ‘vaccine roll-out’ campaigns are clearly benefiting our top-line and they also provide an increased opportunity, for up-sell and cross-sell, introducing our platform, and our products, to an expanding customer base,” he added.

The post Why is the Whispir (ASX:WSP) share price rocketing 14% higher? appeared first on The Motley Fool Australia.

More reading

• 2 exciting small cap ASX shares named as buys
• 2 high-growth ASX tech shares looking cheap right now

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 Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3CK3tZV

The Harvey Norman Holdings Limited (ASX: HVN) share price is falling on Wednesday. At the time of writing, shares in the company are down 2.41% to $5.065 apiece.

This follows the release of the retailer’s trading update for the period between 1 July 2021 and 21 November 2021.

Let’s take a look at how the company has fared.

Hard to beat record sales

In its update today, Harvey Norman has informed investors of a weaker start to the new financial year than its previous.

According to the release, aggregate sales revenue for the first 4 months and 20 days came in 8.8% lower than last year. For reference, the same period in 2020 was one of record performance for Harvey Norman.

At that time, sales revenue posted a year-on-year growth of 28.2%. Meanwhile, aggregated sales revenue is up 16.9% when compared to the pre-COVID-19 months in 2019.

A depreciation in multiple currencies where Harvey operates contributed to the weaker sales revenue growth. Namely, a 2.9% depreciation in the Euro, a 1.7% depreciation in the Singaporean dollar, and a 2.9% depreciation in the Malaysian Ringgit.

Although, this was partially offset by a 2.7% and 3.0% appreciation in the New Zealand dollar and UK pound respectively.

Similarly, the company’s profit before tax took a tumble compared to the prior corresponding period. Unaudited preliminary accounts for the period indicated a profit before tax of $217.42 million. This represents a 35.5% fall compared to last year’s $337.11 million. This significant drop in profits could be influencing the Harvey Norman share price fall today.

However, the retail giant is in a much better position than pre-COVID. Profit before tax is up 70.1% compared to the 2019 period.

Malaysia and Australian franchisees were the most impacted countries for sales revenue during the period. On a comparable basis, these regions were down 24.6% and 11.1% year on year.

Harvey Norman share price under the microscope

While the Harvey Norman share price remains above its pre-COVID levels, it has performed roughly in line with the benchmark index.

Since the start of 2021, the retail giant has gained 8.5%. Though, this fails to exceed the S&P/ASX 200 Index (ASX: XJO) which has climbed 10.9%.

The Harvey Norman share price currently trades on a price-to-earnings (P/E) ratio of 7.7 times.

The post Harvey Norman (ASX:HVN) share price falls as profit before tax sinks 35.5% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• JB Hi-Fi (ASX:JBH) share price jumps on broker upgrade
• 2 ASX shares to boom from new shopping habits: experts

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 owns shares of and has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3xoFRsL

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?

The downward trajectory of popular meme token Shiba Inu (CRYPTO: SHIB) is continuing Tuesday. As of 8 a.m. ET, it had fallen by more than 7% over the previous 24 hours. 

Earlier this week, it was reported that Shiba Inu had been dethroned as the most-traded cryptocurrency on popular exchange Coinbase (NASDAQ: COIN). Top cryptocurrencies Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) saw more trading volume than the meme token for the first time in three weeks. 

Additionally, Shiba Inu’s official Twitter account flagged various scams using the cryptocurrency to target investors interested in altcoins. The official Shiba Inu team has reiterated that it is not conducting any promotions of the token — no airdrops, no giveaways, no gifts, etc., so any social media account that says otherwise is likely involved in a scam.

So what?

Tuesday’s decline in SHIB was the largest among the top 15 cryptocurrencies by market capitalisation. Investors appear to be concerned that Shiba Inu is losing momentum and appeal among the category of retail investors who have propped up its price in recent months. 

Falling back behind Bitcoin and Ethereum in terms of trading volume is still nothing to be ashamed of. However, it’s clear that the speculative mania around Shiba Inu may be fizzling. This token has gone from accounting for approximately 25% of the trading volume on Coinbase a couple of weeks ago to 6.7% of the volume over the past week.

Additionally, concerns about the various scams popping up that utilize Shiba Inu may suggest to some investors that the meme token is simply too speculative to invest in. Those who have described the rally in meme tokens as a bubble may certainly point to the scammers attempting to target the Shiba Inu community as another reason to stay away from that cryptocurrency.

Now what?

For meme tokens like Shiba Inu, trading volume is an important metric. The fact that SHIB appears to be losing some lustre with investors suggests that its value may be under pressure for some time.

How much of this trading volume decline is related to investors losing interest, or to investors becoming wary of the bubble-like nature of the meme token space, is unclear. However, it appears that significant numbers of crypto investors are looking to rotate into (or at least diversify into) other surging cryptocurrencies right now.

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

The post Why Shiba Inu Coin sank 7% today appeared first on The Motley Fool Australia.

More reading

• The DigitalX share price has tumbled 30% in 8 days. What’s happening?
• Did the Bitcoin and Ethereum bubble burst just signal a crypto market top?
• Why ASIC chair warns ‘great caution’ needed when investing in crypto
• Planning to gift Bitcoin (CRYPTO:BTC) or another crypto for Christmas? You’re not alone
• Could carbon credits become the new crypto? This fundie thinks so

Chris MacDonald owns shares of Ethereum. The Motley Fool Australia’s parent company The Motley Fool Holdings Inc. owns shares of and recommends Bitcoin and Ethereum. 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.

from The Motley Fool Australia https://ift.tt/3cEt3oJ

The CSL Limited (ASX: CSL) share price is pushing higher on Wednesday morning.

At the time of writing, the biotherapeutics company’s shares are up 1% to $319.78.

Why is the CSL share price rising?

The catalyst for the rise in the CSL share price this morning appears to have been the release of an announcement relating to its Seqirus business.

According to the release, the U.S. Food and Drug Administration (FDA) has granted supplemental approval of a multi-dose vial (MDV) formulation of Audenz. This is the first-ever adjuvanted, cell-based influenza vaccine designed to help protect individuals six months of age and older against influenza A(H5N1) in the event of a pandemic.

Audenz was originally approved by the FDA in a single dose, prefilled syringe (PFS) presentation in 2020.

Management notes that FDA approval of the MDV presentation of Audenz marks an important milestone in Seqirus’ pandemic preparedness efforts in partnership with Biomedical Advanced Research and Development Authority (BARDA).

BARDA is a component of the Office of the Assistant Secretary for Preparedness and Response (ASPR) within the U.S. Department of Health and Human Services (HHS).

Under the terms of the public-private partnership, which was established in 2009, Seqirus would position itself to deliver 150 million influenza vaccine doses to the U.S. government to support an influenza pandemic response within six months.

Seqirus’ Executive Director, Marc Lacey, commented: “Producing AUDENZ in multi-dose vials allows for increased speed and efficiency, which is absolutely critical to help protect public health in the case of an influenza pandemic. According to the CDC, the influenza A(H5N1) virus is highly pathogenic and has high pandemic potential, so it’s critical to be prepared. Seqirus is committed to partnering with key stakeholders to develop adequate and effective influenza pandemic preparedness plans.”

What is pandemic influenza?

While similar to seasonal influenza, pandemic influenza is a contagious airborne respiratory disease which is unpredictable in timing and severity and has a higher risk of morbidity and mortality.

This is because there is likely to be little or no pre-existing immunity to the virus in the human population.

CSL notes that four influenza pandemics have occurred over the past century, with the 1918 pandemic being the most severe in recent history and estimated to have killed up to 50 million people worldwide. As such, this makes the work Seqirus is doing extremely important for the global population.

The post CSL (ASX:CSL) share price higher on US FDA flu vaccine news appeared first on The Motley Fool Australia.

More reading

• CSL (ASX:CSL) share price struggles despite new government funding
• Here’s why these brokers say the CSL (ASX:CSL) share price might be overcooked
• 2 outstanding blue chip ASX shares to buy this month
• Can CSL (ASX:CSL) shares regain their pre-COVID highs above $330?
• Why has the CSL (ASX:CSL) share price fallen over $7 in a week?

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 CSL Ltd. 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.

from The Motley Fool Australia https://ift.tt/30UCGg5

The PointsBet Holdings Ltd (ASX: PBH) share price is heading in the right direction at last on Wednesday.

In morning trade, the sports betting company’s shares have bounced off their 52-week low and are up 4% to $7.80.

Why is the PointsBet share price rising today?

Investors have been bidding the PointsBet share price higher today after it announced a positive development in the key United States market.

According to the release, through an exclusive partnership agreement with Colonial Downs Group and subsequent joint application for licensure, PointsBet has been awarded a temporary supplier license by the Virginia Lottery to offer online sports wagering in Virginia.

PointsBet’s USA CEO, Johnny Aitken, commented: “Being awarded the opportunity to offer PointsBet’s market-leading speed and ease of use, unrivaled slate of betting options, and overall in-play excellence to the people of Old Dominion is a great achievement and responsibility.”

“Alongside Colonial Downs, PointsBet is proud to partner with the Lottery in Virginia for our first lottery-regulated market license award. We couldn’t be more thrilled to further expand our exclusive relationship with NBC Sports – a staple to sports lovers in Virginia – and ultimately provide the great people in the state with the sportsbook they’ve been waiting for,” he added.

What now?

As the official, exclusive sports betting partner of NBC Sports, PointsBet intends to utilise the media giant’s premium television and digital assets to promote the PointsBet brand in Virginia.

Management also highlights that NBC Sports provides PointsBet with year-round, multi-platform media and marketing opportunities across its unmatched portfolio of events. This includes exclusive multi platform gameday integrations across NBC Sports Washington (in Virginia), which is the regional broadcast home to the Washington Wizards and Washington Capitals.

Despite today’s gain, the PointsBet share price is down 32% in 2021.

The post Why the PointsBet (ASX:PBH) share price is racing higher today appeared first on The Motley Fool Australia.

More reading

• Leading broker thinks Pointsbet (ASX:PBH) share price offers 60% upside
• These were the worst performing ASX 200 shares last week
• 3 fantastic ASX shares to buy this month
• PointsBet (ASX:PBH) share price tipped to surge 44% higher
• Why Brainchip, Chalice, Life360, and PointsBet shares are surging higher

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3DOBw4q

The TechnologyOne Ltd (ASX: TNE) share price was a poor performer on Tuesday.

The enterprise software company’s shares dropped almost 3% to $12.55 following the release of its full year results.

Why did the TechnologyOne share price fall?

The softness in the TechnologyOne share price appears to have been driven by its results falling a touch short of expectations.

For example, the company delivered revenue growth of 4% to $312 million. As a comparison, according to a note out of Bell Potter, its analysts were forecasting revenue of $315.1 million.

In addition, the broker highlights that TechnologyOne’s final dividend was increased 8% to 10.35 cents per share, whereas its analysts were forecasting a 10% increase.

That said, there were far more positives that negatives from the result according to Bell Potter.

For instance, Technology One still outperformed the broker’s profit expectations despite its revenue miss. Profit before tax (PBT) grew 19% to $97.8 million, which was the high end of the company’s guidance range and 1% ahead of Bell Potter’s forecast of $97.1 million.

This was driven by lower than expected expenses. The broker highlights that total expenses (including R&D and D&A) were down 1% despite the company guiding to flat expenses and increasing its R&D spend by 13% year on year.

Another highlight for the broker was the company’s key metric of SaaS annual recurring revenue. It notes that this grew 43% in FY 2021, which was ahead of its forecast of 35%.

Is this a buying opportunity?

Bell Potter appears to believe the weakness in the TechnologyOne share price is a buying opportunity. This morning it retained its buy rating and $15.00 price target on the company’s shares.

Based on the current TechnologyOne share price, this implies potential upside of almost 20% for investors.

It commented: “We have updated each valuation used in the determination of our price target for the earnings changes as well as market movements and time creep. […] The net result, however, is no change in our PT of $15.00 which is >15% premium to the share price so we maintain our BUY recommendation. Overall we are encouraged by the strong conversion of customers to SaaS and the material benefits this brings to the company.”

The post Is the TechnologyOne (ASX:TNE) share price a buy after its results? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls
• TechnologyOne (ASX:TNE) share price on watch following strong SaaS growth in FY21
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX 200 shares cruising past 52-week highs today
• Why this top broker is bullish on the TechnologyOne (ASX:TNE) share price

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.

from The Motley Fool Australia https://ift.tt/3xhOGV5

The Westpac Banking Corp (ASX: WBC) share price has fallen off a cliff since late October, shedding more than 15%.

The banking giant has faced tough trading conditions, which have led investors to flee after reporting its full-year results.

At yesterday’s closing bell, Westpac shares clawed back some gains to end the day 0.6% higher to $21.81.

How is Westpac performing lately?

Investors appear to have mixed feelings about the value of Westpac shares in the current climate. The company failed to hit market expectations in its 2021 scorecard, and its shares plummeted after the release.

Westpac experienced net interest margin (NIM) pressures driven by a raft of unfavourable market environment factors. Key drivers included lower spreads across new mortgages, reduced business lending interest rates, and reductions in personal and business lending average balances.

Analysts at Goldman Sachs believe that NIMs will continue to see headwinds in FY22 from competition and lower rates. This is expected to partially offset tailwinds generated by lower wholesale funding.

On volumes, Goldman Sachs predicts system housing loan growth to continue its positive momentum and for business lending to recover. Post-COVID-19 is expected to bring about a more positive operating environment and confident business sentiment.

Are Westpac shares good value?

Following the FY21 results, a number of brokers weighed in on the company’s share price.

Analysts at Morgan Stanley downgraded their outlook to an “equal weight” rating from “overweight” for the Westpac share price. The broker cut its price target by 14% to $24.80.

Goldman Sachs also reassessed their rating, reducing the view on Westpac shares by 11% to $25.60. Based on the current share price, this implies an upside of approximately 15%.

The most recent note came from multinational investment bank Bell Potter. The firm discounted Westpac shares by 4.1% to a 12-month price target of $26.

Westpac share price snapshot

Despite sinking in recent times, the Westpac share price has gained around 10% over the last 12 months. Although, when looking over a 5-year time frame, Westpac shares are down by more than 30%.

Westpac has a price-to-earnings (P/E) ratio of 17.45 and commands a market capitalisation of roughly $80.01 billion.

The post After falling 15% in a month, is the Westpac (ASX:WBC) share price good value? appeared first on The Motley Fool Australia.

More reading

• Is the CBA (ASX:CBA) share price premium relative to other big banks justified?
• Are ANZ (ASX:ANZ) and NAB (ASX:NAB) the best ASX bank shares to buy?
• Top broker says forget CBA (ASX:CBA) and buy Westpac (ASX:WBC) shares
• Analysts name Westpac (ASX:WBC) and this dividend share as buys
• Why is the NAB (ASX:NAB) share price outperforming the other big banks over the past month?

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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3nJBe9j

The Webjet Limited (ASX: WEB) share price will be on watch on Wednesday.

This follows the release of the online travel agent’s highly anticipated half year results.

Webjet share price on watch after TTV rebounds strongly

• Total transaction value (TTV) of $663 million
• Revenue of $55.4 million
• Operating expenses of $71.2 million
• Underlying EBITDA loss of $15.9 million
• Statutory EBITDA loss of $114.4 million
• Underlying net loss after tax before acquisition amortisation of $34.2 million
• Statutory loss after tax of $132.2 million
• Cash balance of $446 million at the end of September
• Deferred interim FY 2020 dividend of 9 cents to be paid in December

What happened during the half?

For the six months ended 30 September, Webjet experienced a significant improvement in booking volumes, particularly from its WebBeds business which is now producing positive cash. This led to the company recording TTV of $663 million and revenue of $55.4 million for the period.

This is more than double the TTV of $267 million and revenue of $22.6 million during the six months ended December 31 2020. No direct comparison was provided for the same period last year. This year Webjet changed its financial calendar to a 31 March year-end.

As for earnings, or rather its losses, Webjet reported an underlying EBITDA loss of $15.9 million and a statutory EBITDA loss of $114.4 million. The latter includes $72.3 million in non-operating expenses such as write-offs.

Surprisingly, despite the loss, Webjet’s improving outlook has given management the confidence to pay FY 2020’s deferred interim dividend of 9 cents per share. This will be paid on 23 December.

Commenting on the decision to pay a dividend, Webjet’s Chair, Roger Sharp, said: “Since Covid first impacted our business, we have built a strong capital base to ensure we are well positioned for the recovery. Although markets are recovering at different rates, our global reach means we have been able to leverage those markets recovering first and Webjet is once again generating positive cash. We are therefore paying the interim FY20 dividend that was deferred in April 2020 and would like to thank all our shareholders for their support.”

How does this compare with expectations?

This half year result appears to have been a bit of mixed bag, so it is hard to say which direction the Webjet share price will take today.

For example, Goldman Sachs was forecasting TTV of $668.6 million, revenue of $52.5 million, and an EBITDA loss of $13.4 million. This means Webjet has missed on TTV, beaten on revenue, and missed on EBITDA.

Management commentary

Webjet’s CEO, John Guscic, was pleased with the half and appears confident on the future.

He said “The half year results have demonstrated the power of Webjet’s geographic diversification and ability to sharply focus resources on those markets and customer segments that exhibit the earliest recovery patterns. In WebBeds, November TTV is already tracking at 63% of pre-Covid sales yet many key markets are still to open, and December is expected to eclipse November’s trading.”

Mr Guscic believes the shift to online booking will allow Webjet to win market share in the future.

“We see genuine opportunity to increase market share as consumers continue to shift to buying online and believe the exciting innovations offered by the Trip Ninja technology will play a key role in growing our share of the international flights market,” he added.

Another positive is that the company is approaching profitability in a strong financial position. The CEO revealed that this provides Webjet with potential opportunities to bolster its growth with acquisitions.

He commented: “Our reduced cost base, enhanced technology and strong customer service ethos, in conjunction with a culture of constant product innovation, places us in a powerful position to capture bookings as the recovery continues. Our strong capital base also ensures we can take advantage of strategic opportunities as they arise in a realigned and changing global industry.”

Mr Guscic also revealed that the third quarter has started positively and is tracking ahead of the second quarter, and expects this trend to continue in the quarters to come, before booking volumes eventually reach previous levels in around a year.

He explained: “While there remains short term uncertainty with pockets of new outbreaks around the world, we believe ongoing vaccinations, boosters and anti-viral treatments will stabilise the impact of Covid within the next 6- 12 months. Based on our current trajectory of outperforming the market in our WebBeds and Webjet OTA businesses, we believe we will be back at pre-Covid booking volumes by the second half of FY23 – October 2022 to March 2023.”

No guidance has been given for the second half or full year.

The post Webjet (ASX:WEB) share price on watch after reporting huge first half growth appeared first on The Motley Fool Australia.

More reading

• Is the reopening already priced into ASX 200 travel shares?
• Are Webjet (ASX:WEB) shares still worth buying with travel opening up?
• Here’s why the Webjet (ASX:WEB) share price is having a lousy start to the week
• Here’s why ASX 200 travel shares are getting hammered today
• ASX 200 (ASX:XJO) midday update: Lithium miners jump, Flight Centre tumbles

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 Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3HYkW4O

The Appen Ltd (ASX: APX) share price has been a hot topic over the course of the last two years. The artificial intelligence data services company experienced tough trading conditions brought on by the COVID-19 pandemic.

At Tuesday’s market close, Appen shares fell 3.48% to $11.39 apiece. Despite consecutive losses across the past three trading days, its shares are up almost 5% in a month.

Mondrian acquires an interest in Appen

The London-based international investment firm, Mondrian Investment Partners, purchased a sizeable stake in Appen last week.

The firm bought a 5.1% interest or 6,272,348 ordinary shares in the company. This puts Mondrian as Appen’s fifth- largest stakeholder, behind notable companies such as HSBC, JP Morgan, Citicorp and C & J Vonwiller.

The date of the acquisition commenced back on 20 October and finalised on 19 November.

Mondrian manages over US$60 billion in both diversified equity and fixed income asset classes.

What’s ahead for Appen?

Appen completed its restructure in May, focusing on its core business interests. While its half-year results were underwhelming, the company expects an improved second half. This is supported by a strong order book, higher confidence in its pipeline, and the expected second-half revenue skew. The latter is due to its customers’ delivery schedule for e-commerce, digital advertising, and search programs.

Instead of reporting the usual double-digit growth, however, Appen is projecting a slightly lower FY21 underlying earnings before interest, tax, depreciation and amortisation (EBITDA). The company advised of a full-year FY21 EBITDA guidance of between US$81 million to US$88 million, down $2 million from previous estimates.

Are Appen shares a buy?

Since the company’s half-year results, a number of brokers weighed in on the Appen share price.

Analysts at Macquarie cut their price target on Appen by 20% to $11.80. Bell Potter followed suit, also slashing its rating by 15% to $11.50 per share.

The most recent broker note, however, came from JP Morgan at the end of August. The investment firm had a more bearish sentiment, reducing its outlook on Appen by a whopping 45% to $13.50.

Nonetheless, JP Morgan’s price target still implies an upside of around 15% based on the current share price.

Appen share price snapshot

It’s been a tough 12 months for Appen shareholders, with the company’s share price falling 66% and year-to-date, down 53%. Appen has a price-to-earnings (P/E) ratio of 37.72, and a trailing dividend yield of 0.88%.

Appen commands a market capitalisation of around $1.4 billion, with approximately 123 million shares on its books.

The post Own Appen (ASX:APX) shares? Here’s why this $US60b fund just bought a 5% stake appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 tech shares Citi rates as buys
• These were the best performing ASX 200 shares last week
• 2 explosive ASX tech shares analysts love
• Top brokers name 3 ASX shares to buy next week
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Aaron Teboneras owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3r5aJx9

As Australia grapples with the double-vaccinated lifestyle, crazy house prices and still near-zero interest rates, major turbulence has rocked financial ASX shares.

For example, Westpac Banking Corp (ASX: WBC) shares have lost 15% over the past month, while the market turned on former darling Commonwealth Bank of Australia (ASX: CBA), shaving 10% off in the past week.

But with economic activity expected to pick up as the country moves beyond COVID-19 lockdowns, there will be no shortage of work for the finance sector.

Here are a pair of ASX shares that Wilson Asset Management analysts have singled out as ‘buy’:

The Tasmanian coming over to the mainland

With a market capitalisation of $512 million, MyState Limited (ASX: MYS) is definitely small fish compared to the big four banks.

Wilson equity analyst Sam Koch said the Tasmanian ASX share is starting to ramp up its presence on the east coast of the mainland.

“We recently participated in a capital raising the business did. They’re looking to deploy those proceeds in a way that could grow their loan book over time,” he told a WAM YouTube video.

“We think it could almost double their loan book over the next couple of years. MyState’s a buy.”

MyState shares have remained flat this year, just up 0.21% since the New Year’s fireworks.

ASX share going gangbusters in the US

Senior investment analyst Shaun Weick would buy Credit Corp Group Limited (ASX: CCP) right now.

Similar to MyState, shares for the debt buyer have remained flat in 2021, rising just 1.1%.

According to Weick, purchased debt ledger (PDL) volumes “have been depressed” in recent times due to the coronavirus pandemic.

“But we think as the economy reopens and the stimulus benefits unwind, you will see it pick up in credit growth activity.”

The analyst also thought Credit Corp leadership has done well to triple its “flow share” in the US market during the pandemic period.

“As those volumes recover, we can see a very strong growth trajectory for that US business — so we’ve got that one as a ‘buy’.”

Wilson Asset Management is not the only one high on this ASX share. Earlier this month, Ord Minnett slapped on a price target of $32 for the stock.

Credit Corp shares closed Tuesday at $31.15.

The post 2 financial ASX shares to buy right now: experts appeared first on The Motley Fool Australia.

More reading

• Brokers highly rate these 2 ASX shares
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2ZfPX2s