Category: Stock Market

The BetMakers Technology Group Ltd (ASX: BET) share price ended today’s session higher. The betting technology company announced a partnership for British and Irish horseracing in the minutes after market open.

At the closing bell, BetMakers shares travelled 4.52% higher to $1.155.

What did BetMakers announce?

The BetMakers share price lifted off during late market trade, with investors rallying up in the final hour.

In its release, BetMakers advised it signed a multi-year live streaming agreement with Sports Information Services and Racecourse Media Group.

The partnership will see live horseracing vision and wagering content from Britain and Ireland to approved corporate bookmakers in Australia. BetMakers will be the authorised supplier of the vision and content held under the rights of Sports Information Services and Racecourse Media Group. This gives licenced rights to more than 50 racecourses from both companies.

BetMakers CEO and managing director, Todd Buckingham touched on the milestone agreement, saying:

The model of a global racing network, importing and exporting live vision and wagering-related data and content to promote racing across regulated jurisdictions across the world 24/7, is something BetMakers has been successfully promoting. We are delighted to partner with SIS and RMG to bring British and Irish racing to as many punters as we can through our partner operators in Australia. This deal also supports British and Irish racing by increasing commercial returns for the sport.

Sports Information Services commercial director, Paul Witten went on to add:

This is an important step in driving greater access for British and Irish horseracing content in Australia where we know it is popular with punters.

And Racecourse Media Group commercial director, Nick Mills also said:

We are pleased to see this deal eventuate with BetMakers…

The deal results in a bigger audience within Australia, driving new digital revenues for our racecourses through increased returns generated by wagering turnover growth.

About the BetMakers share price

Over the last 12 months, BetMakers shares have risen by more than 180% and over 70% in 2021 alone. The company’s share price recorded a strong upwards trajectory before falling in late May on the Tabcorp Holdings Limited (ASX: TAH) proposed takeover.

At today’s price, BetMakers has a market capitalisation of roughly $938 million, with approximately 812 million shares outstanding.

The post Why the BetMakers (ASX:BET) share price finished the day 4% higher appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher
• Why the BetMakers (ASX:BET) share price is up 5% at lunchtime
• ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps
• Tabcorp (ASX:TAH) share price drops on demerger news
• BetMakers (ASX:BET) builds out tech with more acquisitions

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. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group 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/2V6FqEk

Afterpay Ltd (ASX: APT) shares stormed higher on Wednesday’s session. At market close, the Afterpay share price finished the day up 4.55% to $120.01.

Let’s take a look at today’s share price action from the buy now, pay later (BNPL) giant.

What fuelled the Afterpay share price?

Afterpay did not release any price-sensitive news to justify today’s bullish price action. And as reported by The Motley Fool earlier today, Afterpay shares have been the subject of some varied broker coverage of late.

But as we also covered today, Afterpay shares weren’t the only ASX tech shares feeling the love. The S&P/ASX 200 Info Tech Index (ASX: XIJ) finished the day 2.82% higher which followed a solid night of trading over on the tech-heavy Nasdaq Composite (NASDAQ: .IXIC).

What else has been happening?

Despite being a market darling last year, the Afterpay share price has had a paltry start to 2021.

Since the start of the year, shares in the company have jumped around in a wide trading range. As a result of the volatility, the Afterpay share price is currently only slightly up on the $119 at which it started the year.  

Having been sold-off in May, Afterpay shares enjoyed somewhat of a comeback during June and have gained 27% over the past month. Included in these gains was a boost late last month after the company announced further expansion into the US.

Afterpay advised that its ‘one-time’ card will be extended for US customers. As a result, customers will be able to shop at retailers such as Amazon.com, Inc. (NASDAQ: AMZN), Nike Inc (NYSE: NKE) and Target Corporation (NYSE: TGT).

The post The Afterpay (ASX:APT) share price stormed 5% higher today appeared first on The Motley Fool Australia.

More reading

• These ASX 200 tech shares are beating the broader market today
• Why Afterpay, Challenger, MyDeal, & St Barbara shares are charging higher
• Here’s what leading brokers are saying about the Afterpay (ASX:APT) share price in July 2021
• ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks
• Got Sezzle (ASX:SZL) shares? What’s in store for FY22?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 AFTERPAY T FPO, Amazon, and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon and Nike. 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/3wt7TBu

Healius Ltd (ASX: HLS) shares finished today’s session in the green, after setting a new 5-year high during intraday trading. The Healius share price jumped to an intraday high of $4.73, before retracing back down to close at $4.67 — 1.74% higher for the day.

Let’s take a look at some of today’s share price action for the Australian healthcare company.

Market insights from today’s session

The Healius share price climbed more than 3% from the open during today’s session, beating the previous 52-week high it set on 30 June.

Trading was flat in the first hour of activity, however, the share price action began around 11:00 a.m, with a move from $4.59 to $4.73 intraday, before trending sideways and then slightly lower at the close.

Today’s gains marked the highest level for Healius shares since mid-2015.

Trading volume today came in at around 2.5 million shares exchanging hands, which was well above the 20-day average volume-at-time (AVAT).

What could be behind today’s gains?

Whilst there was no market-sensitive information specific to the company released today, on 5 July investment banking giant Macquarie increased its price target by ~3% to $4.85 in an equity research report.

The ratings upgrade came following a similar update from JP Morgan on 30 June. In that report, the broker called for a $4.75 price target, which Healius shares almost hit today.

Further, a block trade of 2.14 million Healius shares, which equals 0.4% of the float, was traded today at a value of $10.1 million.

This caps off two block trades for Healius shares over the last two weeks. Block trades can impact a company’s share price through their large volume and order flow.

Healius share price snapshot

Finishing in the green over the previous 5 days, the Healius share price has extended its run year to date, posting gains of 25% since the start of the year.

Over the past 12 months, Healius shares have returned around 51%, outpacing the 22% returns of the S&P/ASX 200 Index (ASX: XJO) over the same period.

At the current market price, Healius has a market capitalisation of around $2.9 billion with a dividend yield of around 1.95%.

The post The Healius (ASX:HLS) share price hit a new 5-year high today appeared first on The Motley Fool Australia.

More reading

• How these top ASX biotech shares performed in FY21
• 2 ASX healthcare shares analysts rate highly
• 2 ASX shares hitting record highs this week

Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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/3hmozGs

The Burley Minerals Ltd (ASX: BUR) share price has hit the ASX boards running on Wednesday.

Earlier today, the iron ore and base metals explorer and developer’s shares rocketed as much as 105% to a high of 41 cents.

The Burley Minerals share price eventually closed the day 87.5% higher than its listing price at 37.5 cents.

Why did the Burley Minerals share price rocket higher?

Investors were bidding its shares higher today following the completion of its initial public offering (IPO). They appear to see a lot of potential in the company’s Yerecoin Project in Western Australia.

The Yerecoin Project comprises two exploration licenses that cover 105.5 km2 of land close to the exciting Julimar Project owned by Chalice Mining Ltd (ASX: CHN).

According to its prospectus, exploration activities to date have defined significant JORC-compliant magnetite resources within the project totalling 247 Mt @ 29.9% Fe producing a 68.1% Fe concentrate.

In addition, it notes that a number of historical studies have also been completed and the potential for “Julimar Style” PGE-Cu-Ni mineralisation has also been established.

Given how the Chalice Mining share price is up 650% over the last 12 months thanks largely to successful exploration at Julimar, investors appear optimistic the same could happen to the company’s shares if it has similar successes.

The Burley Minerals IPO

Burley Minerals raised $6 million via the issue of 30,000,000 shares at a price of $0.20 each. This gave it a market capitalisation of $12.2 million.

However, with the Burley Minerals share price charging higher today. Its market capitalisation has now climbed to almost $23 million.

The funds raised from the IPO will support current drilling of the western limb of Yerecoin Main. Management notes that there is immediate potential to extend and upgrade magnetite resources at Yerecoin Main and Yerecoin South.

There is also the potential for discovery of additional magnetite resources. Management highlights that there is an eye-shaped magnetic feature requiring investigation for presence of ultramafics and magnetite mineralisation.

This could make it one to watch in the coming months.

The post Burley Minerals (ASX:BUR) share price rockets 105% after IPO appeared first on The Motley Fool Australia.

More reading

• Why did the Austco Healthcare (ASX:AHC) share price rocket 15% today?
• Is the CBA (ASX:CBA) share price worth buying at $100?
• 2 excellent ASX tech shares named as buys
• Here are 3 of the most traded ASX 200 shares today
• Neometals (ASX:NMT) share price slips 8% following project review

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/3qRdCQ5

Shares in Austco Healthcare Ltd (ASX: AHC) were soaring today following a recommendation by Andrew Page, founder of share market research business Strawman. By market close, the Austco share price was trading at 15.5 cents – 14.81% higher than yesterday’s close.

However, earlier this afternoon, Austco shares were up by more than 18%, swapping hands for a 52-week high of 16 cents apiece intraday.

Austco is a microcap creating healthcare communication solutions. One of its major solutions is a nurse call system which it believes is the most advanced of its kind. It also provides a reporting and analytics platform for nurse call data and a mobile platform for its nurse call solution.

Let’s take a look at what Page had to say about Austco Healthcare today.

ASX pile-in

This afternoon, Page appeared on television program ausbiz stating he believed Austco shares could be a “‘life-changing stock”.

According to a Twitter Inc user, after Page’s appearance, the number of trades involving Austco shares increased 15 times over.

Really silly for people to pile in like that

— Andrew Page (@sage_simian) July 7, 2021

https://platform.twitter.com/widgets.js

Page replied to the Twitter user saying it was “really silly for people to pile in like that”.

In the program, Page commented on the risks associated with investing and noted the additional risks involved with investing in small companies. Of his recommendation, he said:

[picking a ‘life-changing’ stock] is a game that you have to go to the risky end of the spectrum… It’s an area where you only get 3 or 4 out of 10 [recommendations] right.

He went on to explain why he believes Austco shares make a solid investment for his own portfolio, saying:

This is a profitable company. They’re making about $3 million in profit. No debt. $6 million in cash. High inside ownership…. I think they’ve got a lot of potential here. If they can keep implementing these solutions [and] continuing to win, there’s a lot of upsides.

Those interested can watch the entire segment here.

Austco Healthcare share price snapshot

Thanks in part to today’s gains, the Austco share price is sitting more than 56% higher than it was at the beginning of 2021. It has also gained around 96% since this time last year.

The company has a market capitalisation of around $44 million, with approximately 284 million shares outstanding.

The post Why did the Austco Healthcare (ASX:AHC) share price rocket 15% today? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Austco (ASX:AHC) share price is rocketing 12% today

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. owns shares of and has recommended Twitter. 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/3hkevgR

The Commonwealth Bank of Australia (ASX: CBA) share price is currently trading at around $100. Could the major ASX bank be worth looking at after its strong run?

Over the last 12 months the CBA share price has risen by 41% and the last six months has seen a share price rise of 16% over the last six months.

What’s the latest from the bank?

The last price sensitive announcement from the big four ASX bank was the news of the sale of its general insurance business, CommInsure General Insurance, to the Hollard Group. It has established an exclusive 15-year strategic alliance with Hollard for the distribution of home and motor vehicle insurance products to CBA’s retail customers in Australia.

The consideration includes $625 million of upfront consideration, together with deferred payments. CBA will also continue to earn income on the distribution of home and motor insurance products. A pre-completion dividend is also expected to be received.

This sale is expected to increase its common equity tier 1 (CET1) capital by approximately $400 million, or 9 basis points. It’s estimated to result in a post-tax gain on sale of approximately $90 million, which includes estimated post-tax separation and transaction costs of approximately $130 million.

In terms of the actual CET1 ratio, it was 12.7% at the end of the quarter ending 31 March 2021.

The third quarter of FY21 saw the bank generate $2.4 billion of statutory net profit after tax (NPAT). It also saw cash net profit from continuing operations of $2.4 billion in the quarter, up 24% from the FY21 first half quarterly average, mainly driven by lower loan impairment expenses.

CBA saw income up 2% with above system core volume growth, improved margins and higher non-interest income partly offset by the impact of two fewer days. However, expenses were up 1% excluding remediation costs (and 2% including remediation costs).

Profit was significantly helped by a lower loan expense. An improved economic outlook resulted in a reduction in collective provisioning levels. However, CBA said that provision coverage remains strong and continues to reflect a cautious approach to managing risks as the economic recovery from COVID-19 continues.

Should investors look at the CBA share price?

Morgans doesn’t think that CBA shares represent good value when compared to the other big four banks of Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

Whilst the broker is positive on the improving outlook for the major banks and strengthening financials, the CBA share price has risen too far. That’s why its price target is $76, which implies that the CBA share price could fall by over 20% over the next 12 months if Morgans is right.

Looking ahead to FY22, Morgans thinks that CBA will pay a dividend of $4.17 per share, equating to a forward grossed-up dividend yield of 6%.

On Morgans’ numbers, CBA is valued at 18x FY22’s estimated earnings.

The post Is the CBA (ASX:CBA) share price worth buying at $100? appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) economists expect inflation sooner than RBA
• Forget CBA! Here are the 5 best performing ASX bank shares of FY21
• Leading brokers name 3 ASX shares to sell today
• Here’s what leading brokers are saying about the Commonwealth Bank of Australia (ASX:CBA) share price in July 2021.
• PEXA (ASX:PXA) share price jumps to new heights on first ‘normal’ trading day

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.

from The Motley Fool Australia https://ift.tt/3qP92ls

There are a number of companies in the tech sector that are expected to grow at a strong rate in the future.

Two that you might want to get better acquainted with are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is this printed circuit board (PCB) focused electronic design software provider. Although COVID-19 has been weighing on Altium’s performance and could lead to it falling short of guidance in FY 2021, management remains as positive as ever on the future.

This due to its industry-leading platform and a number of tailwinds which are underpinning increasing demand for electronic design software.

These include the rapidly growing artificial intelligence and internet of things markets, which are leading to a proliferation of electronic devices globally. All in all, management is aiming to more than double its revenue to US$500 million in the next five years and appears confident it will get there.

Credit Suisse is bullish on Altium. It recently put an outperform rating and $42.00 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX tech share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider that connects tradies with residential and commercial consumers. It has been growing at a strong rate in FY 2021 and looks well-placed to continue this positive form long into the future. This is thanks to the increasing popularity of its platform and its large market opportunity.

Analysts at Goldman Sachs are very positive on its prospects and currently have a buy rating and $3.40 price target on its shares. The broker notes that the company has a clear strategy to further evolve its ecosystem to increase the value it can provide to a tradie. It expects this to help the company grow its market share and total addressable market (TAM).

It explained: “In our view the road-map to build out the ecosystem provides a notable adjacency for HPG to grow its market share and TAM and provides a strong long-term growth driver. For context, HPG captures c.5% of total industry advertising spend. We see scope for this to grow at a meaningful rate as HPG’s service offering addresses a greater proportion of a tradie’s needs, noting that REA/CAR now capture c.40-60% of spending in their respective categories.”

The post 2 excellent ASX tech shares named as buys appeared first on The Motley Fool Australia.

More reading

• 3 stellar ASX growth shares that are highly rated
• Here are the 5 worst performing ASX 200 tech shares from FY21
• 3 stellar ASX growth shares analysts love
• Why the Altium (ASX:ALU) share price rocketed 30% higher in June
• These were the best performing ASX 200 shares in June

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 Altium and Hipages Group Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Altium. 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/3hmvbEF

The S&P/ASX 200 Index (ASX: XJO) is having a decent day on the markets today. At the time of writing, the ASX 200 looks set to end this Wednesday in the green (touch wood), and is currently up 0.76% to 7,317 points. But let’s have a look at the trees, rather than the forest, and check out which ASX 200 shares are trading with the heaviest volume today:

3 of the most traded ASX 200 shares today

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Sydney Airport is our first ASX 200 share to look at today. A hefty 18.33 million Sydney Airport shares have traded hands so far today. This company has been at the centre of attention on the share market this week, following the blockbuster proposed takeover deal announced on Monday. This saw the Sydney Airport share price shoot up by roughly 35%. Today, however, Sydney Airport shares are currently down 1.82% to $7.57. It’s likely a combination of these factors that are leading to such high trading volume.

Boral Limited (ASX: BLD)

Boral is another ASX 200 share that is being very heavily traded today. Currently, a substantial 36.79 million Boral shares have swapped hands so far this Wednesday. Boral is another ASX share that has had a rather sensational week. Having spent a fair amount of time rebuffing takeover advances from Seven Group Holdings Ltd (ASX: SVW) recently, we got the news this morning that Seven had bought enough Boral shares to raise its stake in the company to 34.5%. Seven had promised a higher takeover offer if it reached this level. As such, it’s perhaps no surprise the Boral share price is moving higher today. It’s currently up 0.27% to $7.40 a share. This in turn might be prompting such a large number of Boral hands to trade today.

Challenger Ltd (ASX: CGF)

Out final share, and the most traded ASX 200 company on the markets today, is Challenger. This annuities provider has seen a whopping 85.7 million shares trade hands so far today, substantially more than any other ASX 200 share. Again, we don’t have to look too far to understand why this is happening. The Challenger share price is currently up a hefty 8.87% today to $5.96 a share after rising as high as $6.22 this morning (up 14%).

Why? Challenger this morning announced that a “strategic partner” in  Apollo Global Management has agreed to acquire a 15% stake in Challenger from Caledonia Investments. This is clearly a vote of confidence in Challenger, and is probably the main catalyst behind the large volume of trades we are seeing today.

The post Here are 3 of the most traded ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• These ASX 200 tech shares are beating the broader market today
• The AFIC (ASX:AFI) share price just hit an all-time high
• Why Afterpay, Challenger, MyDeal, & St Barbara shares are charging higher
• Why the A2 Milk (ASX:A2M) share price is up more than 3% today
• ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks

Motley Fool contributor Sebastian Bowen 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 Challenger Limited. 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/3e9gD9B

Neometals Ltd (ASX: NMT) shares were well in the red today after the company announced the completion of its nickel mineral resources review. At market close, the Neometals share price was trading 8.18% lower at 50.5 cents.

Let’s take a closer look at today’s news from the Australian minerals explorer.

Mt Edwards project review complete

Today’s moves down for the Neometals share price came following the company’s announcement it has completed the nickel mineral resources review at its Mt Edwards nickel project. The analysis finalises a two-year examination of the project, which is located in Western Australia.

In the report, the company completed a review of 11 nickel mineral resources, with 9 mineral resources having been re-estimated between November 2019 and June 2021 using “new and existing data”.

The new global mineral resource was found to provide 162,560 tonnes of contained nickel, from a total of 10.220 million tonnes of ore that averaged a 1.6% nickel grade.

Regarding the Mt Edwards project, Neometals had this to say in today’s update:

The increase for the Mt Edwards 26N Mineral Resource announced 30 June 2021 is the last re-estimation considered necessary with the current information. An assessment of the Cooke1 and Widgie 32 Mineral Resources was completed by Richard Maddocks from Auralia Mining Consultants. In Mr Maddock’s assessment, the current estimates do not warrant reinterpretation given the available data.

Today’s release comes after a series of announcements made by the company since 29 June, each surrounding the Mt Edwards project.

Since 28 June, including today’s trading, the Neometals share price has spiked 9.8%. This is also in spite of today’s downside.

Neometals share price snapshot

At the current market price, Neometals has a market capitalisation of around $275 million and earnings per share (EPS) of -1.8 cents.

The Neometals share price has remained firmly in the green over the previous 12 months, clocking a 1-year return of more than 236%.

Since 1 January, the company’s shares have returned almost 84% to investors, outpacing the S&P/ASX 200 Index (ASX: XJO)’s return of around 11% over this time period.

Neometals shares are 5.6% in the red over the previous 1 month but have finished the previous 5 trading sessions in the green. The company’s shares are trading off their 52-week high of 59 cents but are above their 52-week low of 14 cents.

The post Neometals (ASX:NMT) share price slips 8% following project review appeared first on The Motley Fool Australia.

More reading

• Why the Neometals (ASX:NMT) share price is up 7% today
• Why the Neometals (ASX:NMT) share price is moving higher

The author Zach Bristow has no positions in any of the stocks mentioned. 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/3wlLHsR

Shares in Uniti Group Ltd (ASX: UWL) have spent today firmly in the green, punctuated by an explosive jump in trading around midday. At the market close, the Uniti share price was up 7% trading at $3.36.

Let’s take a closer look at what happened with the telecommunication provider today.

Broker says buy

Bell Potter analyst Chris Savage upgraded his recommendation for Uniti shares this morning, assigning a buy recommendation from a hold rating.

Savage set the price target to $3.60 in the research report on Uniti, raising the target from $3.20.

The broker’s new price target implies an upside potential of 7.5% from the current share price.

Bell Potter believes the company will likely report an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $130 million for FY21, which it believes is the number to watch in the earnings release next month.

On 23 June, analysts at Canaccord Genuity also increased their price target on Uniti shares to $3.70. JP Morgan released a positive equity research report in June as well, outlining the upside potential to the company’s NBN exposure.

These analyst upgrades came after the company was included in the ASX 200 after its reshuffling back in June.

The Uniti share price has climbed 15% since these broker notes, including today’s moves into the green.

Uniti share price snapshot

The company’s share price has outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of 0.8% today.

Today’s gains extend Uniti’s run in the green this year. The Uniti share price has posted a year to date return of almost 96%, building on a 119% 12-month return and outpacing the broad index’s 12-month return of around 22%.

At the current market price, Uniti Group has a market capitalisation of $2.26 billion, and trades at a price-to-earnings ratio (P/E) of 79.

The post The Uniti (ASX:UWL) share price has surged 7% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best ASX telecom shares of the 2021 financial year
• The Uniti Group (ASX:UWL) share price has rocketed 130% in 1 year
• 8 ASX shares that supercharged us out of COVID-19: analyst
• Why we avoid mining and biotech ASX shares: fund manager
• First time in 30 years! 6 ASX shares for crazy times: analyst

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

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