Category: Stock Market

September has not been kind to the EML Payments Ltd (ASX: EML) share price.

Since the start of the month, shares in the payments company have tumbled more than 5%.

In comparison, the S&P/ASX All Technology Index (ASX: XTX) has clawed 1.3% higher for the month.

Let’s take a look at why investors have been bidding the EML share price lower this month.  

What’s been weighing down the EML share price?

Despite a strong start to the month, shares in EML have struggled to stay in the green.

Interestingly, the payments company has not released any major or price-sensitive news since the start of September.

As a result, there are various catalysts that could explain the recent weakness in EML’s share price.

In addition to broader volatility in domestic and international markets, the company has also had to battle uncertainty surrounding its Irish regulation issues.

The EML share price was rocked earlier this year after the Central Bank of Ireland voiced concerns over the company’s anti-money laundering financing compliance.

Additionally, investors could be re-rating shares in the payments company following its full-year results.  

How did EML perform in FY21?

For FY21, EML reported a record year with growth across a majority of its financial metrics.

Highlights from the company’s full-year report included;

• Group gross debit volume (GDV) up 42% to $19.7 billion.
• Record revenue of $194.2 million, an increase of 60% on FY20.
• Record underlying group earnings before interest, tax, depreciation, and amortisation (EBITDA) of $53.5 million, up 65%.
• Gross profit margins of 67%, down from 73% in FY20 due to a shift in business segments.
• New business GDV pipeline of $10.5 billion, with more than 300 prospects.
• Costs and provisions totalling $11.4 million in FY21 in relation to the Central Bank of Ireland regulatory investigation.

For FY22, EML is expecting to generate underlying EBITDA in a range of between $58 million to $65 million.

In response, the EML share price tanked more than 5% after releasing its report.

Snapshot of the EML share price

Despite a promising start to the year, the EML share price was shaken by regulation issues in Ireland.

Shares in EML have struggled to recover from the events and remain more than 5.5% lower for 2021.

The EML share price gained some of its losses back yesterday, closing higher at $3.96.

The post September hasn’t been a great month so far for the EML (ASX:EML) share price appeared first on The Motley Fool Australia.

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• 2 ASX shares that may be worth looking at this weekend
• Here’s why the EML (ASX:EML) share price is up 8% in the last month
• The EML Payments (ASX:EML) share price is rated as a strong buy

Motley Fool contributor Nikhil Gangaram 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 EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. 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 Westpac Banking Corp (ASX: WBC) share price is in focus this morning following the bank’s announcement that its New Zealand branch will be welcoming a new boss.

Catherine McGrath is set to take over the CEO position at Westpac New Zealand on 5 November.

The Westpac share price finished yesterday’s session trading at $25.07 after gaining 0.6% over the course of Thursday.

Let’s take a closer look at the upcoming changes for Westpac New Zealand.

Westpac New Zealand’s new CEO

The Westpac share price is on watch this morning amid word of its New Zealand business’ new boss.

From 15 November, Catherine McGrath will take on the CEO position at Westpac New Zealand.

McGrath’s most recent role was as head of channels at London-based bank, Barclays, where she oversaw 16,000 people.

She has also held executive roles at ASB Bank New Zealand and senior roles at Lloyds Bank.

Currently, Westpac’s New Zealand business is being run by interim CEO Simon Power, after former-CEO David McLean’s retirement.

Following McGrath’s appointment, Power will return to his role as general manager of institutional and business banking at Westpac New Zealand.

McGrath’s appointment is still subject to regulatory approvals.

Commentary from management

Westpac Group’s CEO, Peter King, commented on the news that might have put the bank’s share price in focus, saying:

Westpac New Zealand is a strong business that has been serving New Zealanders for 160 years. In our recent portfolio review of the business, we identified ways to improve service for customers, including improving our digital capabilities, an area in which Catherine has considerable management expertise.

Westpac New Zealand’s chair-elect, Pip Greenwood, also commented:

Catherine joins Westpac New Zealand at a time of opportunity for our business, as we support New Zealanders through the challenges of COVID-19, and we seek to differentiate ourselves through leading customer service.

Westpac share price snapshot

The Westpac share price has been performing well this year.

It has gained 27% year to date. It is also 53% higher than it was this time last year.

The post Westpac (ASX:WBC) share price in focus amid new NZ CEO appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) share price leads big four banks today despite broker’s bearish view
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• How could a stock market correction impact ASX 200 bank shares?

Motley Fool contributor Brooke Cooper 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has been trending upwards over the past 12 months. This comes as Australia’s third-largest bank has enjoyed positive investor sentiment, despite the economic impact caused by COVID-19.

At the end of Thursday’s market close, ANZ shares finished 1.07% higher to $27.38.

What’s going on with ANZ?

There are a couple of reasons why the ANZ share price has moved forward in 2021.

First and foremost, the bank released its third-quarter business update to the market on 18 August.

ANZ highlighted its CET1 ratio came in at 12.2%, a slight reduction from the 12.4% recorded in the previous period. In addition, the $1.5 billion buyback, which commenced on 4 August, is expected to reduce its CET1 ratio by 35 basis points.

The company also revealed a total provision release of $32 million for the quarter. This comprises an individual provision charge of $21 million and a collective provision release of $53 million.

The provision balance stood at $4.25 billion, with a collective provision coverage ratio of 1.24%.

In terms of the COVID-19 impact, ANZ noted that it has handed out roughly 1,300 customer loan deferrals during the current lockdown. This reflects about $600 million in value or 0.2% on its total home loan portfolio.

The other possible catalyst for the ANZ share price rise is Australia’s speedy vaccination program.

State governments have confirmed that once the majority of their populations are fully vaccinated, they will ease restrictions. This will see businesses get back to work and restart Australia’s economy. In turn, people will be able to service their loans, and the default rates will drop.

How much is ANZ forecast to pay in dividends?

With the bank scheduled to report its full-year results on 28 October, investors may be wondering about the dividend payments.

ANZ paid a fully franked dividend of 70 cents per share in July for the first half of FY21. This is above the 35 cents recorded in the prior period (FY20).

Goldman Sachs is forecasting a total FY21 dividend payment of 140 cents, implying a 70 cent-per-share final dividend payment. This would give ANZ a fully-franked current dividend yield of 5.11% and a forecasted payout ratio of roughly 65%. Not a bad return when including the strong ANZ share price rise.

It’s worth remembering that the company has consistently maintained or increased its dividend payments over the last 40 years. However, this does not account for the last 18 months due to COVID-19.

ANZ share price snapshot

In 2021, the ANZ share price has continued to rise in value, gaining more than 20% for investors. When factoring in the last 12 months, its shares are further in the green, up 60%.

On valuation grounds, ANZ presides a market capitalisation of approximately $77.12 billion, with 2.84 billion shares on its books.

The post The ANZ (ASX:ANZ) share price is now trading on a forecast 5.11% fully-franked dividend yield appeared first on The Motley Fool Australia.

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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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The S&P/ASX 200 Index (ASX: XJO) has lost about 3% from its most recent high about a month ago.

That would be 5% if it weren’t for a mini-rally the past couple of days.

AMP Capital chief economist Dr Shane Oliver reckons “it’s too early to say” whether the market has passed the bottom or if this is just the start of a correction.

The potential for giant Chinese real estate development company Evergrande to collapse had even brought out talks about it becoming a “Lehman Brothers moment” like in the global financial crisis.

“The wobbles in shares reflects a long worry list that has been building for a few months now,” he said on the company blog.

“Sharp market falls with talk of ‘Lehman moments’ are stressful for investors as no one likes to see their investments fall in value.”

Oliver does see the possibility of share markets suffering a correction this year, which is defined as a pullback of 10% or more from recent highs.

However, he reminded investors to keep an even-keeled mind during such times. Don’t panic. 

In fact, he presented 7 things to remember to avoid getting caught up in the doom-and-gloom hype:

Corrections are ‘healthy and normal’

According to Oliver, share market corrections happen regularly and they’re nothing out of the ordinary.

“While they all have different triggers and unfold differently, periodic corrections in share markets of the order of 5%, 15% and even 20% are healthy and normal.”

In fact, he presented a chart that showed the ASX 200 has had 10 dips of 5% or more in the past 10 years. Six of those were 10% or more.

“While share market pullbacks can be painful, they are healthy as they help limit complacency and excessive risk taking.”

The second reason not to worry excessively is that a correction rarely turns into a major bear market unless it is accompanied by a recession.

Oliver did not think this was likely.

“While global growth is likely to slow in 2022 business surveys remain strong and global growth is still likely to be strong at around 4%,” he said.

“In Australia, the delayed but now rapid vaccination program looks on track to allow a gradual reopening as we learn to live with higher levels of coronavirus through next quarter, avoiding recession ahead of much stronger growth next year.”

Don’t lock in your losses

Getting spooked by a correction and selling your shares is always a bad idea.

All that does is turn a paper loss into a real one, which has no chance of recovering.

“The best way to guard against deciding to sell on the basis of emotion after weakness in markets is to adopt a well thought-out, long-term strategy and stick to it.”

Also, when stock prices have fallen that’s a great chance to pick up some bargains.

“Look for opportunities’ pullbacks provide,” said Oliver.

“It’s impossible to time the bottom but one way to do it is to average [them] over time.”

The fifth reason to not overreact to a correction is that the market will often head opposite to how you feel.

“Shares and other related assets often bottom at the point of maximum bearishness, that is, just when you and everyone else feel most negative towards them. 

“So, the trick is to buck the crowd.”

ASX yields are pretty good at the moment

OIiver said that ASX shares are handing out some excellent dividends this year, which will offset the pain from falling stock prices.

“The income flow you are receiving from a well-diversified portfolio of shares is likely to remain attractive, particularly against bank deposits.”

And lastly, Oliver suggested “turning down the noise”.

“In times of uncertainty, negative news can reach fever pitch. But it often provides no perspective and only adds to the sense of panic,” he said. 

“All of this makes it harder to stick to an appropriate long-term strategy let alone see the opportunities that are thrown up.”

The post An ASX correction could be coming: Here’s what to do appeared first on The Motley Fool Australia.

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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 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 Premier Investments Limited (ASX: PMV) share price was on form on Thursday.

The retail conglomerate’s shares rose 3% to $27.63 following the release of its full year results.

What happened in FY 2021?

For the 12 months ended 31 July, Premier Investments reported an 18.7% increase in retail sales to $1,443.2 million and a 97% jump in statutory net profit after tax to $271.8 million.

A key driver of this growth was its Peter Alexander brand, which reported a 34.7% increase in sales to $388.2 million. This offset weakness in the Smiggle brand, which has been impacted by lockdowns.

Where next for the Premier Investments share price?

Brokers appear divided on where the Premier Investments share price is going next.

According to a note out of Goldman Sachs, its analysts have put a sell rating and $23.40 price target on its shares.

Based on the current Premier Investments share price, this implies potential downside of 15% over the next 12 months before dividends.

Goldman commented: “We upgrade our NPAT forecasts by +13.5% and +12% respectively over FY22/23e. We introduce our FY24 estimates. However, valuation still remains elevated vs. the peer group and on an associates adjusted basis. We maintain our Sell rating on PMV with a revised 12m Target Price of A$23.40, offering a total return downside of -12.4% to the current trading price.”

Bullish broker

However, the team at Bell Potter don’t agree with this view and are recommending its shares as a buy.

According to the note, the broker has upgraded Premier Investments’ shares to a buy rating and lifted its price target on them to $31.25.

Based on the current Premier Investments share price, this implies potential upside of 13% over the next 12 months before dividends. This stretches to 16% including dividends.

Bell Potter commented: “There is no material EPS changes, although given the improving outlook for Smiggle & continued strength in PMV’s other brands, we have improved the risk parameters used in our model. Including roll-forward our PT increases to $31.25 (previously $26.10).”

“While we expect a rebase in FY22 earnings, we believe this is already priced in & we now look beyond this and see the resumption of solid growth from FY23 onwards. With an implied Just Group EV/EBITDA (pre-AASB16) ~10x, we upgrade from Hold to Buy,” it added.

Time will tell which broker makes the right call.

The post Brokers give their verdict on the Premier Investments (ASX:PMV) share price 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 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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The Insurance Australia Group Ltd (ASX: IAG) share price has plunged in the past month amid a series of negative announcements.

Yesterday, the insurance giant’s shares encountered further losses, falling 0.62% to $4.84. In comparison, the S&P/ASX 200 Index (ASX: XJO) lifted 1.01% to 7,370.2 points.

Below, we take a closer look at IAG’s most recent result and how its shares have performed since.

What did IAG report for FY21?

IAG delivered its full-year results for the 2021 financial year to investors before market open on 11 August. The IAG share price closed the previous day at $5.28, just 4% off its 52-week high of $5.51.

Across the board, IAG recorded a mostly positive performance with growth in several key metrics:

• Gross written premium (GWP) improved 3.8% to $12,135 million
• Insurance profit jumped 35.9% to $1,007 million
• Underlying insurance margin fell 130 basis points to 14.7%
• Reported insurance margin grew 340 basis points to 13.5%
• Net loss after tax of $427 million
• Cash earnings up 170% to $747 million
• Unfranked final dividend of 13 cents per share bringing full-year dividend to 20 cents apiece

IAG managing director and CEO Nick Hawkins commented:

… I have put in place a new, more customer aligned operating model, reset our strategy for growth, and appointed a leadership team with deep insurance and customer expertise, and clear accountability for success. We are already seeing results from these changes and have momentum behind our strategy.

How did the IAG share price respond?

In the weeks following IAG’s result, its shares moved sideways before starting to descend on 7 September. Over that period, its shares have fallen almost 20%.

When looking at the last 12 months, the IAG share price is up by around 7.5%, with a smaller increase of just over 2.5% year to date. It’s worth noting however, the company’s shares have lost about 40% of its wealth since August 2019.

In contrast, the ASX 200 has gained 25% from this time last year and is up around 10% in 2021. The ASX 200 also reached a record high of 7,632 points in mid-August.

This shows that IAG shares have been outperformed by the benchmark, which historically tracks about 6% higher each year.

IAG commands a market capitalisation of roughly $11.93 billion and has approximately 2.47 billion shares on its books.

The post How has the IAG (ASX:IAG) share price been performing since reporting results? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woodside Petroleum Limited (ASX: WPL) share price has been one to watch in recent weeks. Shares in the Aussie energy giant climbed 2.4% higher on Wednesday to arrest a recent slide.

However, the company’s shares remain down 7.1% year to date in what is quickly becoming a formative year for the petroleum producer. So, how can investors focus on valuing the Woodside Petroleum share price in the current environment?

How do you value the Woodside Petroleum share price?

As with any energy or resource share, underlying commodity prices play an important part in valuation. It’s important for investors to understand the macro environment that underpins the outlook for ASX companies like Woodside.

Oil prices have been up and down throughout 2021. However, both WTI and Brent crude oil prices jumped more than 2% overnight in a good sign for the Woodside Petroleum share price.

It is worth noting that valuation is more of a long-term game. Investors are mostly concerned about their future cash flows from an investment, hence why the share market is often said to be forward looking.

In general, there are a few different ways to value ASX companies like Woodside. A commonly used measure of fundamental value includes a discounted cash flow (DCF) analysis. This involves modelling out key value drivers like forecast commodity prices, cost of debt and equity (to get a weighted-average cost of capital or “WACC”) and underlying expenses like operating and capital expenditure.

Discounting these back to today’s figures, and calculating a terminal value in the final year of the model, is one way investors can assess the intrinsic value of the Woodside share price.

What if I don’t want to use a full cash flow model?

Given the imprecise nature of valuations, it often pays to use multiple methodologies. Other common valuation techniques include relative value analysis, using metrics such as the price-to-earnings (P/E) ratio, and comparable transactions approach.

The Woodside Petroleum share price currently trades at a P/E ratio of 41.6 times earnings. What investors can do is assess how that compares to the P/E ratio of peers like Santos Ltd (ASX: STO) and a broader group. For reference, the Santos share price currently trades at a P/E ratio of 33.6 times. This helps to give a sense of where the Woodside share price sits relative to similar companies in order to assess value.

The comparable transactions approach is simple but can be tricky to find meaningful results. It involves finding recent mergers and acquisitions, gaining an average transaction multiple, discounting the value for a control premium by the acquirer, and applying that adjusted multiple to the Woodside Petroleum share price.

This is useful as it estimates what players in the market would actually be paying and can give a good market value guide. The downside is that there is often a limited set of truly comparable transactions relevant to the company.

Foolish takeaway

There’s no doubt it’s difficult to value the Woodside Petroleum share price right now. The group’s shares are down 7.1% in 2021 amid its BHP Group Ltd (ASX: BHP) merger, as well as changing oil prices.

Investors looking to value the company need to look at the long-term prospects for both crude oil and liquid natural gas (LNG). This could help inform the cash flows required to reach an intrinsic valuation in a DCF model.

Another option is to assess the relative value of the company’s shares. This can be done by using metrics such as the P/E ratio or comparable transactions in the market.

The post How do you value the Woodside Petroleum (ASX:WPL) share price? appeared first on The Motley Fool Australia.

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

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This month has not been kind to the Woolworths Group Ltd (ASX: WOW) share price.

Shares in the supermarket giant have tumbled more than 6.5% since the start of September.

By comparison, the broader S&P/ASX 200 Index (ASX: XJO) has dipped 2.09% since the start of the month.

Let’s take a look at what’s been weighing down Woolworths shares.

Why is the Woolworths share price struggling?

There have been many catalysts that have added pressure on the Woolworths share price this month.

In addition to general market volatility, the supermarket giant has also had its own developments to deal with.

Most recently, Woolworths reported shortages in its latest collectables promotion called Woolworths Bricks.

Earlier this month, the supermarket giant also made headlines after reducing its holdings in food box delivery company Marley Spoon AG (ASX: MMM).

Woolworths also released its Sustainability Plan 2025 in early September, noting several goals for the future.

How did Woolworths perform in FY21?

Late last month, shares in Woolworths received a boost after the company reported strong full-year results for FY21.

With COVID-19 lockdowns forcing many Australians to stay at home, a marked increase in consumption was noted.

This was reflected in the supermarket giant’s Australian food sales, which increased 5.4% to $44.4 billion for FY21.

Highlights from the company’s report included:

• Group sales rose 5.7% to $67,278 million
• eCommerce sales surged 58.1% to $5,602 million
• Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
• Group net profit after tax up 22.9% to $1,972 million

Thanks to an expansion in its margins, Woolworths shareholders were rewarded with a 14.6% increase in final dividend of 55 cents per share.

Snapshot of the Woolworths share price

Despite tumbling this past month, shares in Woolworths remain more than 12% higher since the start of the year.

In addition to its full-year report, the company also made headlines earlier this year following the demerger of its Endeavour business.

The Woolworths share price closed yesterday’s session slightly lower at $39.06.

The post September hasn’t been a great month so far for the Woolworths (ASX:WOW) share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 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 Rio Tinto Limited (ASX: RIO) share price has been well and truly out of form in September.

Since the start of the month, the mining giant’s shares have lost approximately 12% of their value.

Why is the Rio Tinto share price falling?

Investors have been selling down the Rio Tinto share price this month after the iron ore price went into free fall.

This was driven by demand concerns in China following curbs on steel production and fears that property giant Evergrande could collapse. The latter could have a huge impact on Chinese construction and ultimately demand for the steel making ingredient.

And while prices have rebounded in recent days after Evergrande made a bond repayment, the property giant is far from out of the woods.

Where next for its shares?

Unfortunately, one leading broker believes Rio Tinto’s shares could be heading lower from here.

A recent note out of UBS reveals that its analysts have retained their sell rating and cut their price target on the mining giant’s shares by 16% to $86.00.

Based on the current Rio Tinto share price of $98.86, this implies potential downside of 13% over the next 12 months.

UBS made the move following a quicker than expected correction by iron ore prices. This has led to a sharp downgrade to the broker’s iron ore price forecasts, which has led to an equally sharp reduction in its earnings estimates for Rio Tinto.

In addition, the broker has concerns over longer term iron ore prices due to an expected increase in supply from Africa and the availability of scrap steel in China.

All in all, UBS doesn’t believe the Rio Tinto share price has found its bottom just yet and appears to be cautioning investors against jumping in at this point.

The post Top broker sees Rio Tinto (ASX:RIO) share price sliding another 13% appeared first on The Motley Fool Australia.

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

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Are you looking for growth shares to buy? If you are, you may want to consider the two listed below.

Here’s why these growth shares are highly rated by analysts:

Bapcor Ltd (ASX: BAP)

Bapcor is the Asia Pacific region’s leading provider of vehicle parts, accessories, equipment, service and solutions.

It has been growing at a solid rate in recent years and this continued in FY 2021. For example, last month Bapcor released its full year results and reported a 20.4% increase in revenue to $1,761.7 million. Things were even better on the bottom line thanks to margin expansion. The company’s pro forma net profit after tax increased 46.5% to $130.1 million.

This was underpinned by growth across each of Bapcor’s business segments, driven by increased demand from consumers.

And while its guidance for FY 2022 was cautious because of lockdowns, its longer term outlook remains very positive. This is due to its strong market position and domestic and international expansion plans.

Credit Suisse is a fan of Bapcor. The broker currently has an outperform rating and $9.20 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Hipages is Australia’s largest online tradie marketplace and software-as-a-service (SaaS) provider connecting tradies with residential and commercial consumers across Australia.

It was also a strong performer in FY 2021. Last month Hipages released its results and revealed a 22% jump in revenue to $55.8 million and a 27% increase in its monthly recurring revenue (MRR) to $5.2 million.

This was underpinned by a 12% increase in job volumes to 1.53 million, a 12% lift in subscriptions to 31,200, and a 29% increase in average revenue per tradie to $1,536.

The good news is that Hipages has a significant market opportunity to grow into. The company commissioned further market research in FY 2021 to find the size of the total addressable market (TAM) of the tradie ecosystem. This research confirmed the TAM to be over $110 billion across the residential and commercial sectors.

Goldman Sachs is very positive on Hipages. It currently has a buy rating and $4.35 price target on the company’s shares.

The post 2 fantastic ASX growth shares tipped as buys appeared first on The Motley Fool Australia.

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• 2 stellar ASX growth shares rated as buys
• 2 growing ASX shares that analysts rate as 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. owns shares of and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. 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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