Category: Stock Market

The Vulcan Energy Resources Ltd (ASX: VUL) share price has returned from its trading halt and is shooting higher.

At the time of writing, the lithium developer’s shares are up 11% to $12.87.

Why is the Vulcan share price charging higher?

Investors have been bidding the Vulcan share price higher today after it released an announcement relating to a new binding offtake agreement.

According to the release, Vulcan has signed a binding lithium hydroxide offtake agreement with Umicore. It is a leader in cathode materials production used in lithium-ion batteries for electrified transportation.

The agreement is for an initial five-year term, with the start of commercial delivery set for 2025. Umicore will purchase a minimum of 28,000 tonnes and a maximum of 42,000 tonnes of battery grade lithium hydroxide over the duration of the agreement. Pricing will be based on market prices on a take-or-pay basis.

The release notes that in Nysa, Poland, Umicore has built the first cathode materials plant in Europe. The plant is expected to start production around year end of 2021 and the materials that will be produced in Nysa will be sold to battery cell makers who produce the batteries for electric vehicles.

Management commentary

Vulcan’s Managing Director, Francis Wedin, commented: “Umicore, a leading cathode manufacturer and the first in Europe, will be a valuable offtake partner for Vulcan, as a direct consumer of Vulcan’s lithium hydroxide products.”

“With our recent announcements of agreements with LG Energy Solution and Renault Group, we now have a diversified mix of offtakers from the cathode, battery and automotive sectors, with further agreements expected in the near term.”

“Importantly, Umicore also shares our ambition to decarbonise the battery supply chain in Europe, by building a carbon neutral cathode plant in Poland. We look forward to a long and fruitful cooperation with Umicore as we progress our Zero Carbon Litihum Project,” he added.

The post Why the Vulcan (ASX:VUL) share price is jumping 11% on Monday appeared first on The Motley Fool Australia.

More reading

• Why the Vulcan (ASX:VUL) share price is in a trading halt
• Why has the Vulcan Energy (ASX:VUL) share price plunged 27% in a month?
• How did ASX lithium shares perform in the FY22 first quarter?
• Which shares are the biggest winners and losers on the ASX 300 today?
• Vulcan (ASX:VUL) share price falls despite positive lithium plant update

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

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The Audinate Group Ltd (ASX: AD8) share price is under pressure on Monday morning.

At the time of writing, the media networking solutions provider’s shares are down 10% to $8.84.

Why is the Audinate share price crashing?

Investors have been selling down the Audinate share price today following the release of its first quarter update.

According to the release, Audinate has started the new financial year in a very positive fashion. For the three months ended 30 September, the company achieved unaudited revenue of US$7.6 million. This represents a 46.1% increase over the prior corresponding period and is a record quarterly performance.

Things would have been even better for Audinate if it were not for factory closures in both Malaysia and China that limited further revenue growth during the period.

What’s driving this growth?

Management advised that this strong revenue growth was driven by demand for Dante products continuing to reach record highs.

In fact, demand has been so strong that the backlog of orders for chips, cards, and modules increased to US$14.8 million at the end of the quarter.

Management advised that this reflects original equipment manufacturer (OEM) customers placing orders further into the future and strong underlying growth in demand.

So why are its shares tumbling?

Weighing heavily on the Audinate share price today has been management’s warning that component shortages are expected to impact its second half performance.

It notes that an important supplier has informed Audinate of an unexpected and sudden reduction in the supply of a silicon chip used primarily in the Brooklyn II, Broadway and Dante video products. This component is also purchased directly from the supplier by OEM customers for use in high channel count reference designs and some IP Core implementations.

In light of this, with immediate effect the supplier can no longer guarantee delivery of open orders for Audinate or other customers using the affected part. For Audinate, this means for orders dating back to January of this year.

What now?

In response, Audinate is accelerating plans to release the next generation Brooklyn product by the fourth quarter. The new generation Brooklyn product will be a pin compatible, drop-in replacement for the current Brooklyn II. It expects most OEMs to be able to incorporate it in their products with little or no re-design.

However, until then, the company’s revenues are expected to be severely impact. For example, management notes that the component shortage constrains its ability to supply products that have historically delivered approximately 43% of Audinate’s revenue.

And while the company still expects to deliver revenue growth in FY 2022, it will not be in the pre-COVID historical range.

Audinate’s Co-Founder and CEO, Aidan Williams, commented: “Whilst it is disappointing when unexpected events emerge, I have been pleased with the way in which the team has galvanised into action and been able to accelerate some of the plans we already had in the technology roadmap.”

“While there will be an additional element of uncertainty heading into the second half of FY22, I remain confident that we will be able to overcome another COVID related speed bump. Underlying demand is at record levels and we will do our best to satisfy as much of it as we possibly can over the remainder of the financial year,” he concluded.

The post Audinate (ASX:AD8) share price crashes 10% on Q1 update appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 high quality ASX tech shares to buy in October
• Why the Audinate (ASX:AD8) share price is rated as a buy
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• 3 small cap ASX shares analysts rate highly

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 AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL 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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Leading fund manager Wilson Asset Management (WAM) has revealed two ASX shares that it rates as buys within the WAM Research Limited (ASX: WAX) portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

One of the LICs is called WAM Research, which looks at smaller businesses on the ASX.

WAM describes WAM Research as a LIC that invests in the most compelling undervalued growth opportunities in the Australian market.

The WAM Research portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 16.8% per annum since the strategy changed in July 2010, which is superior to the S&P/ASX All Ordinaries Accumulation Index return of 9.6% per annum.

These are the two ASX shares that WAM outlined in its most recent monthly update:

Webjet Limited (ASX: WEB)

WAM says that Webjet is a digital travel business and an online travel agent for flights, hotels, car hire, insurance and motorhomes in the domestic market and internationally.

The fund manager noted that the Webjet share price went to an 18-month high on investor sentiment that domestic and international travel will return after headlines of borders reopening.

Webjet itself gave a trading update where it said that its strategy coming out of COVID will mean it can be cashflow positive in the first half of FY22.

WAM said that Webjet’s management have positioned the ASX share to exit the COVID-19 era to capitalise on opportunities to significantly increase market share gains while operating a structurally lower cost base, which will lead to higher profit margins.

Whilst the Delta variant has impacted ASX travel shares significantly, the fund manager is positive on certain travel companies like Webjet and believe the company see “significant upside” as conditions normalise and more international markets reopen.

Maas Group Holdings Ltd (ASX: MGH)

The other ASX share that was named was MAAS Group, which is a vertically integrated construction materials, equipment and services provider with a property development segment.

WAM noted that in September, the ASX share revealed it had signed an agreement to buy the Earth Commodities hardrock quarry operation in Gladstone. This will enable the company to achieve synergies within its Central Queensland Construction Materials business and improve its growth opportunities over the year ahead.

The fund manager says that with strategically located quarry assets, significant unutilised capacity and a substantial pipeline of infrastructure spend expected over the coming there years to five years, WAM believes the organic growth outlook for the business is compelling. MAAS Group is expected to be further enhanced by bolt-on acquisitions and WAM sees potential for corporate action within the property arm.

The post These 2 ASX shares have been named as good opportunities appeared first on The Motley Fool Australia.

More reading

• ASX travel shares on watch as US border reopens
• Here’s why the Webjet (ASX:WEB) share price is lifting 4% on Friday
• Wilson Asset Management (WAM) thinks these 2 top ASX shares are a buy
• Top broker sees 15% upside in the Webjet (ASX:WEB) share price
• Why the Webjet (ASX:WEB) share price has beaten the ASX 200 in the last 6 months

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 owns shares of and 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 will be in focus today as travel between Australia and New Zealand is reportedly going to restart.

What’s happening with borders?

According to reporting by News.com.au, quarantine-free travel from New Zealand’s South Island will restart next week.

Chief medical officer Paul Kelly said travel can restart because there have been no locally-acquired COVID cases since last year.

However, travel from the North Island won’t happen until the end of the month.

Both NSW and Victoria have agreed to this plan, though it remains to be seen what will happen with the other states.

News.com.au quoted Mr Kelly:

There is very good work being done to stop people from the North Island going to the South Island, so that is not a risk.

We hope to allow anyone who’s been in the South Island of New Zealand, whether they’re Australians, New Zealanders or other nationalities, to come in quarantine-free.

There are some Australians who have been stuck in the South Island New Zealand for quite some time and we’d welcome them home.

How easy will it be for passengers to get into Australia?

It was reported that, according to the Department of Health, people travelling from New Zealand will need to take a pre-departure PCR test within 72 hours of their flight and show evidence they are fully vaccinated.

Those potential passengers will also need to declare that they hadn’t been in New Zealand’s North Island for the prior two weeks.

It was also announce that Singapore and Australia are in talks to open quarantine-free travel. It is in “rapid development”.

What could this mean for the Qantas share price?

The Qantas profit has been impacted heavily by the limited number of passengers it has been able to transport since the beginning of the COVID-19 pandemic. But it’s expecting a recovery.

In just FY21 it saw an underlying loss before tax of $1.83 billion and a statutory loss before tax of $2.35 billion. Qantas said at the time that it had suffered a $12 billion revenue impact from COVID-19 in FY21.

Despite all of those impacts, it saw statutory net free cashflow of $267 million in the second half of FY21. It also said that its restructuring program was ahead of target, delivering $650 million in year one.

Around 95% of domestic flying was cash positive and a record performance by Qantas Freight “mostly” offset the cost of idling international operations.

Talking about FY22, Qantas said that it was expecting group domestic capacity to reach 110% of pre-COVID capacity in the second half of FY22. As Australia’s international borders open, it was expecting capacity to reach 30% to 40% in the third quarter and 50% to 70% in the fourth quarter.

Its recovery plan is expected to deliver an additional $200 million of cost benefits. Qantas was also expecting a continuing strong cash contribution from its Qantas loyalty division, with plans to offer more ways to earn points and status credits on the ground.

Domestic freight demand is expected to remain strong. However, international freight ‘belly space’ is expected to be constrained until international capacity stabilises.

After the recent sale of land, Qantas CEO Alan Joyce said that it would use those $802 million of funds to pay down debt. He also said:

The restart date for international travel has been brought forward and the thresholds for domestic borders opening in most states should be reached in the next two months. We know there is a lot of pent-up demand that we’re ready to capitalise on, with some strong signs already.

The post Qantas (ASX:QAN) share price on watch as New Zealand travel returns appeared first on The Motley Fool Australia.

More reading

• Could the Qantas (ASX:QAN) share price soar to $6.50 by the end of 2021?
• Why ARB, Flight Centre, HUB24, and Qantas shares are rising today
• Qantas (ASX:QAN) share price rises after $800 million land sale agreement
• Why this top broker is bullish on the Qantas (ASX:QAN) share price
• NSW cash splash, business confidence up, Qantas (ASX:QAN) down on Bonza news. Scott Phillips on Nine’s Late News

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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The Aristocrat Leisure Limited (ASX: ALL) share price won’t be going anywhere on Monday.

This morning the gaming technology company requested a trading halt.

Why is the Aristocrat Leisure share price paused?

This morning Aristocrat requested a trading halt so that it could undertake an equity raising to fund a major acquisition.

According to the release, the company has made a cash offer to acquire London-listed leading global online gambling software and content supplier, Playtech, for $5 billion.

This represents a valuation multiple of 11.4x Playtech’s adjusted EBITDA for the twelve months ended 30 June 2021.

Management believes the acquisition will accelerate Aristocrat’s growth strategy over the medium term and deliver sustainable shareholder value. It is expected to be mid to high single digit earnings per share accretive during the first full year of ownership.

The good news for the company is that the Playtech Board is unanimously recommending that its shareholders vote in favour of the deal. Playtech directors who own Playtech shares have irrevocably undertaken to vote in favour of the takeover.

In addition, Aristocrat has received letters of intent or irrevocable undertakings from a number of major Playtech shareholders, including Playtech’s largest shareholder. Combined, a total of approximately 63.4 million shares will be voting in favour of the deal, representing approximately 20.7% of Playtech’s outstanding shares.

What is Playtech?

Playtech comprises two key business segments: Business-to-Business gambling (B2B) and Business-to-Consumer gambling (B2C).

Playtech’s B2B gambling operations include the design, development, and distribution of software and services to the online and land-based gambling industry. It covers all key online real-money gaming (online RMG) segments, including casino, live casino, poker, bingo and sports betting, monetising via a revenue share model.

Playtech’s B2C gambling operations predominantly consists of Snaitech (Italy), a vertically integrated retail and online business leveraging Playtech’s proprietary technology and capabilities. As a leading Italy-based multi-channel gaming operator, it is free of any meaningful channel conflict with Aristocrat’s existing operations. Other B2C brands include HPYBET and SunBingo. HPYBET is Playtech’s retail sports betting B2C business, operating betting shops in Austria and Germany.

Equity raising

The release explains that Aristocrat expects to fund the acquisition with $1.1 billion of existing cash, a $2.8 billion Term Loan B issuance, and $1.3 billion equity raising. The latter will be via an underwritten pro rata accelerated renounceable entitlement offer with rights trading. This is to provide the fairest possible structure for Aristocrat shareholders.

These funds will be raised at $41.85 per new share, which represents an 8.6% discount to the Aristocrat Leisure share price at Friday’s close.

Trading update

Also potentially giving the Aristocrat Leisure share price a boost upon its return is its trading update.

The release notes that Aristocrat expects its NPATA to come in at $864 million in FY 2021 . This will be an 81.1% increase year on year. This strong growth reflects positive performances across all its operations during the 12 months.

The Aristocrat Leisure share price is up 46% in 2021.

The post Aristocrat (ASX:ALL) share price halted for $5bn Playtech acquisition appeared first on The Motley Fool Australia.

More reading

• These brokers think the Aristocrat (ASX:ALL) share price can keep climbing
• Brokers name 3 ASX shares to buy today
• 2 top ASX shares that could be strong buys

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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Are you looking for some dividend shares to boost your income portfolio?

If you are, then you might want to look at the ones listed below. Here’s why these ASX 200 dividend shares could be in the buy zone:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

ANZ could be an ASX 200 dividend share to buy if you’re looking for exposure to the banking sector. This is due to the prospect of generous and growing dividends in the coming years thanks to its improving performance, cost reduction plans, and its strong balance sheet.

The team at Morgans see a lot of value in the bank’s shares and have an add rating and $34.50 price target on them.

As for dividends, the broker is forecasting fully franked dividends per share of $1.45 in FY 2021 and then $1.65 in FY 2022. Based on the current ANZ share price of $27.87, this will mean yields of 5.2% and 5.9%, respectively.

The post 2 ASX 200 dividend shares to buy now 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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While the S&P/ASX 200 Index (ASX: XJO) has risen more than 50% from the COVID-19 low in March 2020, there are some ASX shares that have gone down the gurgler.

For some, the price plunge was entirely self-inflicted, while for others external forces conspired to bring down their prospects.

However, with NSW now reaching 80% double-vaccination coverage and about to end quarantine for incoming travellers, will these ASX shares return to their pre-COVID glory?

One market commentator certainly thinks there are some beaten-up ASX shares that might reward long-term investors.

“Patience is an asset,” said Switzer Financial Group founder Peter Switzer on Youtube.

“You can try and trade by buying a stock and flipping it once you’re happy with the gain that you’ve made. But timing can be tricky, just like betting on the four-legged lottery on Melbourne Cup day.”

Here are 3 punished stocks that Switzer holds out hope for.

‘Huge customers’ and ‘certainly believable’ potential

Nuix Ltd (ASX: NXL) only listed in December but its shareholders might feel like they’ve lived through a lifetime this year.

After an initial public offering (IPO) that saw Nuix shares issued at $5.31, the software company shot up above $11 in January before a series of financial downgrades and governance scandals deflated momentum.

On Friday, Nuix shares finished the session at $2.58 but Switzer suspects this low might be a buying opportunity.

“Analysts believe the company has a target price that suggests it could go up 156%,” he said.

“Even if they’re only half-right, I’d be happy with half of 156%.”

Nuix provides analytics software that allows large institutions, like law enforcement, to make sense of huge troves of unstructured data, such as emails.

“It has huge customers in both the public and the private domain and it was a hugely successful company until all this misreporting really lowered the boom,” said Switzer.

“The potential for the company still is certainly believable.”

ASX share with 77% upside potential

Machine learning services provider Appen Ltd (ASX: APX) has seen its shares drop 73% over the past year.

The company has lost revenue from its mainly US-based clients, who have withdrawn non-essential spending since the arrival of the coronavirus pandemic.

But Switzer still has faith in Appen’s long-term prospects.

“This is a company that’s really well-positioned for the future of business, because it’s in artificial intelligence, it’s in machine learning — and it’s got some pretty big customers out there,” he said.

“This is a company that, when business gets back to normal, it’ll actually start to improve.”

According to Switzer, 4 of the big broking houses have a target price well above Friday’s closing share price of $9.65. The lowest is $11 from Credit Suisse, while Citi is the most bullish at $17.

If Appen reaches Citi’s price target, investors buying at Friday’s price will gain 76%.

Give this stock one more year before you give up

Of course, long-term investing doesn’t mean one should recklessly hold onto a stock out of blind faith.

Sometimes, if a business has changed for the worse, you have to cut it loose to prevent further damage to the portfolio.

A2 Milk Company Ltd (ASX: A2M) shares have lost 66% since their July 2020 highs due to the company’s Chinese sales channel plummeting because of international travel bans.

But Switzer reckons shareholders should give it a bit more time before completely condemning the stock.

“I don’t know when A2 Milk will be out of the woods but I am going to give it another year,” he said.

“This is a quality company … the future will look good for this company, but it just might take some time before that future comes to reality.”

The post 3 punished ASX shares that could come roaring back appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• These were the best performing ASX 200 shares last week
• Top brokers name 3 ASX shares to sell today
• Could the A2 Milk (ASX:A2M) share price hit $8 by the end of 2021?
• Analysts name 3 excellent ASX growth shares to buy

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tony Yoo owns shares of A2 Milk and 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’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool Australia has recommended A2 Milk. 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 planning to add some growth shares to your portfolio, then you may want to look at the shares listed below.

All three of these ASX growth shares have been tipped as buys recently. Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is the leading appliance manufacturer behind a collection of brands including Sage and the eponymous Breville brand. Over the last decade, the company has been growing at a solid rate. This has been driven by acquisitions, its international expansion, and its continued investment in research and development. The latter is ensuring that Breville has a strong and innovative product portfolio that resonates well with consumers.

Morgans is positive on the company’s long term growth outlook. As a result, its analysts currently have an add rating and $34.00 price target on its shares.

Life360 Inc (ASX: 360)

Another highly rated ASX growth share to look at is Life360. It is the growing technology company behind the Life360 mobile app. This is an app used by 32.3 million people each month (an increase of 28% year on year), offering features such as communications, driver safety, and location sharing. Life360 has also recently expanded into the wearables market, increasing its total addressable market and opening up cross selling opportunities. This and the further monetisation of its customer base looks set to underpin strong revenue growth in the coming years. As of Life360’s last update, the company’s annualised monthly revenue (AMR) was up 36% to US$105.9 million.

Bell Potter is fan of the company. It currently has a buy rating and $10.75 price target on Life360’s shares.

PointsBet Holdings Ltd (ASX: PBH)

A final growth share for investors to look at is PointsBet. It is a sports wagering operator and iGaming provider with operations in the ANZ, Canadian, and US markets. PointsBet offers innovative sports betting products and services via its scalable cloud-based platform. It has been growing at a rapid rate thanks to the increasing popularity of mobile sports betting and innovative new products.

Goldman Sachs currently has a buy rating and $14.75 price target on the company’s shares. It is positive on PointsBet’s long term growth prospects due to its massive US opportunity.

The post 3 highly rated ASX growth shares to buy appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, EOS, GUD, & PointsBet shares are charging higher
• PointsBet (ASX:PBH) share price lifts following Canada update
• 2 ASX shares delivering rapid growth
• 3 excellent ASX growth shares to buy now
• Could the PointsBet (ASX:PBH) share price hit $15 by the end of 2021?

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 Life360, Inc. and 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.

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On Friday the S&P/ASX 200 Index (ASX: XJO) was on form and finished the week on a positive note. The benchmark index rose 0.7% to 7,362 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to start the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.4% higher this morning. This follows a strong end to the week on Wall Street, which saw the Dow Jones rise 1.1%, the S&P 500 climb 0.75%, and the Nasdaq push 0.5% higher.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid start to the week after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price is up 1.2% to US$82.28 a barrel and the Brent crude oil price has risen 1% to US$84.86 a barrel. Oil prices climbed to three-year highs amid supply deficit forecasts.

Rio Tinto named as a buy

The Rio Tinto Limited (ASX: RIO) share price could be in the buy zone according to analysts at Goldman Sachs. In response to its third quarter update, the broker has put a buy rating and $122.40 price target on the mining giant’s shares. It said: “We note the new guidance is in-line with GSe and the Sep Q production was overall in-line or a touch better than GSe.”

Gold price sinks

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week in the red after the gold price tumbled lower on Friday night. According to CNBC, the spot gold price fell 1.7% to US$1,768.30 an ounce. Improving investor sentiment appears to have weighed on the safe haven asset.

Iron ore price falls

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch after the spot iron ore price softened on Friday night. According to Metal Bulletin, the benchmark iron ore price fell 0.5% to US$125.22 a tonne. This iron ore price recorded a small weekly gain during another volatile week.

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

More reading

• Can the BHP share price hit $56 by the end of 2021?
• Top brokers name 3 ASX shares to buy next week
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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

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The tech sector is home to a number of companies with strong growth potential.

Two that are highly rated are listed below. Here’s what you need to know about these tech shares:

Adore Beauty Group Limited (ASX: ABY)

The first tech share to consider is Australia’s leading online beauty retailer, Adore Beauty.

Though, calling it just an online beauty retailer is a bit of a disservice as it is so much more. Since launching in 2000, Adore Beauty has evolved into an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 260 brands and 10,800 products.

It has been growing strongly over the last few years and this has continued in FY 2022. Adore Beauty released its first quarter update last week and reported a 25% increase in revenue to $63.8 million. This was underpinned by a 24% jump in active customers to 874,000 and returning customer growth of 63%.

Positively, even when annualised, this is just a fraction of the beauty and personal care (BPC) market in Australia which is estimated to be worth $11.2 billion. Furthermore, it is expected to grow at a 26% CAGR through to 2024.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $6.00 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another ASX tech share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its Nitro Productivity Suite. The Nitro Productivity Suite provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

In FY 2021, Nitro is aiming for annualised recurring revenue (ARR) of between US$39 million and US$42 million. This will be up strongly year on year but still well short of its total addressable market which is estimated to be $28 billion.

The team at UBS are very positive on Nitro. Last week they initiated coverage on the company with a buy rating and $4.70 price target. The broker believes Nitro’s ARR could surpass US$100 million by FY 2024.

The post 2 excellent ASX tech shares tipped for big things 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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Nitro Software 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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