Category: Stock Market

On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued manner. The benchmark index finished the day a fraction lower at 7,307.3 points.

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

ASX 200 expected to fall

The Australian share market looks set to edge lower this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% lower. This follows a mixed night of trade on Wall Street, which saw the Dow Jones fall 0.45%, the S&P 500 rise 0.2%, and the Nasdaq storm 1% higher.

Oil prices tumble

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be under pressure today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price is down 1.7% to US$72.83 a barrel and the Brent crude oil price has fallen 2% to US$74.69 a barrel. Oil prices slipped from three-year highs ahead of OPEC talks.

Tech shares could rise

Tech shares such as Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) could be on the rise today. This follows a very strong night of trade on the Nasdaq index, which saw the tech-heavy index jump to a record high. As the local tech sector tends to follow its lead, this bodes well for today’s session. Facebook helped drive the Nasdaq higher after the social media giant reached a trillion-dollar market cap for the first time.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,779.50 an ounce. Growing COVID-19 fears supported the safe haven asset.

Woolworths downgraded

The Woolworths Group Ltd (ASX: WOW) share price could be fully valued according to analysts at Goldman Sachs. This morning the broker downgraded the retail giant to a neutral rating with a reduced price target of $36.80. Goldman made the move after updating its valuation to account for the Endeavour demerger.

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

More reading

• ASX 200 flat, e-commerce ASX shares soar, Metcash rises
• Oil hits 3-year high! How are ASX energy shares reacting?
• Here are 3 of the most actively traded ASX 200 shares today
• The Zip (ASX:Z1P) share price is down 6%…profit taking, competition or lockdown fears?
• Warning: One thing could plunge ASX shares into crisis

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 AFTERPAY T FPO and Altium. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Altium. 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) was essentially flat today, ending the day at 7,307 points.

Here are some of the highlights from the ASX today:

Metcash Limited (ASX: MTS)

Metcash reported its FY21 result to the market, with Mitre 10 and Home Timber and Hardware performing strongly.

The ASX 200 share said that its group revenue increased by 9.9% to $14.3 billion.

Metcash generated underlying earnings before interest and tax (EBIT) of $401.4 million, up 19.9%.

Underlying profit after tax went up 27.1% to $252.7 million. The wholesaler and hardware business announced statutory profit after tax of $239 million (up from a loss of $56.8 million in the prior year). It generated $475.5 million of operating cashflow.

The board increased its FY21 total dividend by 40% to 17.5 cents per share, whilst also announcing an off-market share buyback of up to approximately $175 million.

Metcash also increased its total ownership in Total Tools from 70% to 85% for an acquisition cost of $59.4 million.

The CEO of Metcash, Jeff Adams, said:

It has been a standout year for Metcash, with record sales underpinning significant earnings growth and record operating cashflow.

All pillars performed strongly, and the group has successfully navigated significant challenges and uncertainty associated with COVID, while continuing to implement our MFuture growth initiatives.

Bapcor Ltd (ASX: BAP)

The Bapcor share price went up around 0.7% today after revealing its goals. It told investors about the medium-term growth targets for its networks.

Bapcor was going to reveal these new targets at its investor day a few days ago, but that had to be postponed due to COVID restrictions.

Physical store targets have increased in all segments. It outlined its supply chain and technology strategy. The Asian strategy has been expanded with the addition of Tye Soon. Bapcor also expanded on its environmental, social and governance commitment. Finally, its own brand targets were also increased in all segments.

With Australian trade, it currently has 200 stores and it wants to reach 260. Bapcor is going to open between 10 to 12 new stores per annum to reach this goal.

Looking at Australian retail, it has a target of 200 stores, where it currently has 133. Bapcor is planning to add approximately 12 new Autobarn stores per annum.

In Asia, the ASX 200 share is aiming to have more than 60 Thailand stores, where it currently has six. This results in a target of $100 million revenue in Thailand. The total Asian revenue goal is $500 million. It currently has $4 million of revenue from Thailand and $200 million with Tye Soon, an Asian-listed business that Bapcor recently bought a quarter of.

E-commerce ASX shares

Lockdowns and restrictions were enacted in different states and territories across Australia over the last few days.

E-commerce ASX shares had a green day today as many of them saw their strongest day for a while.

The Kogan.com Ltd (ASX: KGN) share price went up 6.6%, the Redbubble Ltd (ASX: RBL) share price increased by 8.2%, the Cettire Ltd (ASX: CTT) share price rose 14%, the Temple & Webster Group Ltd (ASX: TPW) share price climbed 10.2% and the Adore Beauty Group Ltd (ASX: ABY) share price went up 2.5%.

The post ASX 200 flat, e-commerce ASX shares soar, Metcash rises appeared first on The Motley Fool Australia.

More reading

• Oil hits 3-year high! How are ASX energy shares reacting?
• Here are 3 of the most actively traded ASX 200 shares today
• 2 beaten down ASX 200 shares that could be buys
• These are the 10 most shorted shares on the ASX
• Warning: One thing could plunge ASX shares into crisis

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. owns shares of and has recommended Cettire Limited, Kogan.com ltd, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Bapcor and Kogan.com ltd. The Motley Fool Australia has recommended Cettire Limited and Temple & Webster Group 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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Exchange traded funds (ETFs) continue to grow in popularity with investors and it isn’t hard to see why. Never has it been so easy for investors to gain access to groups of shares from all corners of the world.

But given how many ETFs there are to choose from, it can be hard to decide which ones to add to a portfolio. To narrow things down, I have picked out two highly rated and popular ETFs to get better acquainted with. They are as follows:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF aims to track the performance of the NASDAQ-100 Index before fees and expenses. This index comprises 100 of the largest non-financial companies listed on the NASDAQ market, and includes many companies that are at the forefront of the new economy.

BetaShares notes that this area of the market is underrepresented on the Australian share market. As a result, the ETF may benefit local investors that often have a large allocation to financials and mining companies and little exposure to technology.

Among the companies you’ll be buying a slice of are global giants such as Amazon, Apple, Facebook, Microsoft and Tesla. And given their positive long term growth prospects, this bodes well for the BetaShares NASDAQ 100 ETF’s performance over the coming years.

Over the last five years the ETF has generated a return of 23.6% per annum for investors.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to 1,507 of the world’s largest listed companies from major developed countries.

Vanguard notes that the ETF offers low-cost access to a broadly diversified range of securities that allows investors to participate in the long-term growth potential of international economies outside Australia. The fund manager believes this makes it suitable for buy and hold investors seeking long-term capital growth, some income, and international diversification.

Among the companies included in the fund are giant such as Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The Vanguard MSCI Index International Shares ETF has generated a total return of almost 14% per annum over the last five years.

The post 2 highly rated international ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• These ASX ETFs give investors access to global tech giants
• A2 Milk and Zip were among the most traded ASX shares last week
• 2 exciting ASX tech shares that could be buys
• 3 ASX ETFs that could give investors easy exposure to the US markets
• 3 high quality ETFs for ASX investors

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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) is having a fairly subdued start to the trading week this week. The ASX 200 has closed pretty much flat today, down 0.01% to 7,307 points.

One sector that didn’t really branch out for the index’s performance is ASX energy. That’s despite a big development in the crude oil price today.

According to a report in the Australian Financial Review (AFR) today, crude oil is sitting at a 3-year high. The two crude benchmarks relevant to ASX energy shares are both at their highest levels since October 2018 today.

Brent crude is sitting comfortably at US$76.18 a barrel at the time of writing. Meanwhile, West Texas Intermediate (WTI) crude is at US$74.05 a barrel.

According to the report, it is a rebounding demand for global travel that is pushing crude higher. A guessing game over what the market-setting Organisation of Petroleum Exporting Counties (OPEC) will do next is also fuelling demand. Daniel Hynes, the senior commodity strategist at ANZ, told the AFR the following:

So far [OPEC] has been able to negate the impact of travel restrictions on demand by coordinating a supply response that has kept the market from being flooded with excess cargo… It has reached a point, however, where its cautious approach could ultimately hurt the market…

The market is looking extremely tight over the next couple of quarters… We expect [OPEC+] will try to balance the market’s need for more supply against the fragile nature of the recovery in demand.

So with crude prices at a 3-year high, how are ASX energy shares faring today?

Black gold no longer for ASX energy shares?

Well, not that well, as we touched on earlier. The ASX’s largest oil company, Woodside Petroleum Ltd (ASX: WPL) was flat today at $22.53 a share. Although Woodside has recovered substantially (up 40% or so) from the lows we saw last year, it still remains more than 30% lower than the pricing we were seeing just prior to the onset of COVID-19 last year.

It’s a remarkably similar story with the ASX’s other pure oil shares such as Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO).

Why? Well, Hynes reckons it could be the level of risk that investors are seeing with the current oil market. Noting that crude oil consumption remains well below pre-pandemic levels, and 8% below 2019 levels, Hynes reckons that the fact that international borders remain all but closed is at play here:

[Oil demand could] struggle to rise further if the new delta variant of the coronavirus takes hold in major regions and forces officials to hold onto some restrictions.

Hynes is also looking to the potential of Iranian oil re-entering the global market following a potential loosening of sanctions. It looks like it will be yet another interesting year for oil in 2021.

The post Oil hits 3-year high! How are ASX energy shares reacting? appeared first on The Motley Fool Australia.

More reading

• Here are 3 of the most actively traded ASX 200 shares today
• Warning: One thing could plunge ASX shares into crisis
• Here’s why the Freelancer (ASX:FLN) share price is surging 7% today
• The ASX shares most impacted by Australia’s job squeeze
• Temple & Webster share price surges with other ASX COVID winners

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 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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Microsoft Corporation (NASDAQ: MSFT) has been the target of a cyberattack less than a week after eclipsing a $2 trillion market capitalisation.

On Friday, the US-based tech giant disclosed it had suffered a breach at the hand of hackers. Let’s take a look at the details.

Microsoft breach links with SolarWinds cyberattack

In a post to its security response center, Microsoft divulged that it was tracking new cyberattacks conducted by Russian hacking group Nobelium.

The group were successful in installing malicious software on a computer used by a Microsoft customer support employee. Nobelium proceeded to steal sensitive information which would be used to target Microsoft customers.

Accordingly, Microsoft responded by securing and removing access to the compromised device. Afterwards, the company noted its customer service agents have access to minimal personal information as part of its ‘Zero Trust’ approach to customer information.

Reportedly three customers were affected by the compromised data. All customers that were compromised or targeted were being contracted by the company.

Furthermore, the cyberattack on Microsoft was part of a larger attack targeting 36 countries. This activity predominately targeted IT companies and government organisations.

Cyberattack déjà vu

The hacking group involved in this breach was also responsible for the SolarWinds Corp (NYSE: SWI) attack in December 2020.

That breach was one of the largest in recent history, impacting 18,000 users including the U.S. Treasury, Department of Commerce, and Homeland Security.

“These attacks appear to be a continuation of a multiple efforts by Nobelium to target government agencies involved in foreign policy as part of intelligence gathering efforts,” said Microsoft.

Investing in combatting cyberattacks

Companies and governments are investing billions to fend off the rapidly growing occurrence of cyberattacks. With it becoming an increasing problem, the amount of funding funnelling into the sector is unprecedented.

So, if you are looking for ways to try and capitalise, there are options out there. One ASX-listed example is the Betashares Global Cybersecurity ETF (ASX: HACK). The exchange-traded fund (ETF) is invested in 40 of the world’s biggest and most innovative companies in the space.

Moreover, the top 5 holdings in the ETF currently consist of Crowdstrike Holdings Inc (NASDAQ: CRWD), Zscaler Inc (NASDAQ: ZS), Okta Inc (NASDAQ: OKTA), Accenture PLC (NYSE: ACN), and Cisco Systems Inc (NASDAQ: CSCO).

The HACK ETF climbed 0.42% higher to $9.52 per share in today’s session. Meanwhile, over the past 12 months, the fund has delivered a 17.8% return.

The post Microsoft (NASDAQ:MSFT) customers compromised in a cyberattack appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that could be worth looking at this weekend
• Microsoft (NASDAQ:MSFT) share price lifts company into $2 trillion club
• These ASX ETFs give investors access to global tech giants
• 2 exciting ETFs for ASX growth investors
• Will Microsoft’s Xbox game lineup match Sony’s PlayStation dominance?

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There are a lot of growth shares out there for investors to choose from. To narrow things down, I have picked out two that analysts love.

Here’s why analysts rate these growth shares highly:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. Over the past 80 years, Breville has become an iconic Australian brand, developing high quality and innovative products for kitchens around the world.

The good news is that the leading appliance manufacturer’s growth is not expected to end any time soon. This is thanks to strong demand, favourable industry tailwinds, its international expansion, and its ongoing R&D investment.

One leading broker that is confident that Breville’s strong growth can continue for some time to come is UBS. It is forecasting double-digit sales growth through to at least FY 2023.

In light of this, the broker rates its shares as a buy and has put a $35.70 price target on them.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is Australia’s largest enterprise software company. It provides a global software as a service (SaaS) ERP solution that transforms business and makes life simple for its customers. Management notes that its integrated enterprise SaaS solution is available on any device, anywhere and anytime and is incredibly easy to use. A testament to this is that over 1,200 leading corporations, government agencies, local councils and universities are powered by its software.

This has underpinned strong recurring revenue growth and is expected to continue doing so over the remainder of the 2020s. So much so, management is targeting annualised recurring revenue (ARR) of over $500 million by FY 2026. This is over double its current base ARR of $233 million.

Morgans is very positive on the company and recently put an add rating and $10.00 price target on its shares. It believes TechnologyOne can achieve its aspirational ARR target by FY 2026 based on existing legacy customer migration and new additions.

The post Here’s why analysts love these ASX growth shares appeared first on The Motley Fool Australia.

More reading

• 4 top ASX 200 shares analysts rate highly
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• 2 ASX 200 shares that might be buys for growth
• 2 ASX 200 blue chip shares rated as buys
• 2 quality ASX 200 tech shares that might be 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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Over the last 30 days, shares in Bank of Queensland Limited (ASX: BOQ) have outperformed those of all other S&P/ASX 200 Index (ASX: XJO) banks. At the time of writing, the Bank of Queensland share price is $9.05 – 1.12% higher than it was this time last month.

That makes it the best performing ASX 200 bank of the last 30 days.

Coming in second best is the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price, which has gained 0.39% in the same time frame.

The Commonwealth Bank of Australia (ASX:CBA) share price has fared the best out of the big four. Its shares have fallen 0.02% since this time last month.

Shares in Australia and New Zealand Banking Group Ltd (ASX: ANZ) have fallen 1.71%, while those of Westpac Banking Corp (ASX: WBC) are 2.20% lower than they were 30 days ago.

Bringing up the rear is National Australia Bank Ltd (ASX: NAB). Its share price has dropped 3.12%.

Let’s take a look at what Bank of Queensland has been up to this month.

The month that’s been

The Bank of Queensland has released 2 pieces of price sensitive news to the market lately.

The first was on 15 June, when the bank announced its upcoming APRA Basel III Pillar 3 report will include a decrease in its collective provision.

It also stated it plans to reduce its collective provision by another $75 million. Its share price gained 1.5% on the back of the news.

Then, on 21 June, Bank of Queensland released news the Treasurer of the Commonwealth of Australia had approved its proposed acquisition of Members Equity Bank (ME Bank).

Bank of Queensland has been updating the market on its planned acquisition of ME Bank since February. It is to pay around $1.3 billion in cash for the acquisition.

Now that the acquisition has received the Treasurer’s approval, the deal will go ahead on 1 July.

The market seemed excited by the news, as the Bank of Queensland share price ended the day’s trade 5.47% higher than its previous close.

Bank of Queensland share price snapshot

It’s been a good year so far for the Bank of Queensland share price.

Currently, it’s 20% higher than it was at the start of the year. It has also gained 51% since this time last year.

The bank has a market capitalisation of around $5.7 billion, with approximately 639 million shares outstanding.

The post Bank of Queensland shares outperforming all ASX 200 banks this month appeared first on The Motley Fool Australia.

More reading

• Why analysts rate Westpac (ASX:WBC) and this dividend share as buys
• Westpac’s (ASX:WBC) double life insurance divestment looms
• Westpac (ASX:WBC) share price dips following vehicle finance sale
• 5 outperforming ASX dividend shares unmasked
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

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 S&P/ASX 200 Index (ASX: XJO) is having a rather flat start to the trading week this week. At the time of writing, the ASX 200 is currently up a paltry 0.02% to 7,309.6 points. So let’s take a look at some of the ASX 200 shares that are proving popular today in terms of sheer trading volume.

3 ASX 200 shares that are making moves today

South32 Ltd (ASX: S32)

Diversified ASX 200 miner South32 is proving a popular share on the share market today, with 9.81 million shares having traded hands so far. There has been no major news or announcements out of the company today that might prompt an uptick in trading volume. Apart from a daily share buy-back notice, which is possibly contributing. However, South32 shares are currently defying the broader market’s gloom, and are up 1.37% at the time of writing. As we covered last week, South32 has also been a beneficiary of some attention from brokers recently, which might also be helping.

Qantas Airways Limited (ASX: QAN)

The Flying Kangaroo is also, well, flying on the ASX boards today. This ASX 200 share has seen a bumper 12.79 million shares change hands today so far. Unlike South32 though, this might be the result of a share price slump from the airline today. At the time of writing, Qantas shares are down a nasty 4.33% to $4.52 a share after falling close to 6% earlier in the trading day. We can probably blame the COVID/lockdown situation in Sydney and other parts of the country for this malaise. Other ASX travel-related shares have seen similar moves today.

Pilbara Minerals Ltd (ASX: PLS)

Yet again, Pilbara Minerals is starting the week off where it spent most of last week – at the top of the ASX 200’s most traded shares list. A hefty 14.06 million Pilbara shares have traded so far today. Like Qantas, this may be the result of a substantial fall in the value of Pilbara shares themselves today. Currently, Pilbara Minerals is down 3.57% to $1.43 a share after making a new all-time high of $1.60 a share last week. As my Fool colleague Brooke covered earlier, there’s not much in the way of major news or announcements out of Pilbara so far today. So this move might just be driven by market sentiment.

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

More reading

• ASX travel shares tumble amid widening COVID restrictions
• Warning: One thing could plunge ASX shares into crisis
• Here’s why the Freelancer (ASX:FLN) share price is surging 7% today
• Pilbara Minerals (ASX:PLS) shares are the most traded on the ASX 200 today
• The ASX shares most impacted by Australia’s job squeeze

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 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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If you’re on the lookout for dividend shares to buy, then you may wish to look at the ones listed below.

Here’s why analysts rate these ASX shares highly and are expecting generous yields ahead for investors:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this retail conglomerate. Accent has a focus on the leisure footwear market and has a growing stable of brands such as HYPEDC, Platypus, Sneaker Lab, and The Athlete’s Foot.

Thanks to favourable consumer spending trends, its growing store network, and strong business model, the company has been tipped to continue growing its earnings and dividend at a solid rate in the future.

Bell Potter is very positive on the company’s outlook and currently has a buy rating and $3.30 price target on its shares. It is also forecasting dividends of 11.7 cents per share in FY 2021 and then 12.3 cents per share in FY 2022. Based on the current Accent share price of $2.75, this will mean fully franked yields of 4.25% and 4.5%, respectively.

Commenting on Accent’s recent acquisition of Glue Store, its analysts said: “The acquisition of Glue Store will accelerate AX1’s growth in the fragmented youth apparel market. Glue Store strongly complements AX1’s existing banners in youth footwear and significantly expands AX1’s addressable market beyond footwear.”

Westpac Banking Corp (ASX: WBC)

This banking giant has been tipped as a dividend share to buy over at Citi. Its analysts have put a buy rating and $29.50 price target on its shares, making it the only big four bank that Citi is recommending at present.

The broker is forecasting fully franked dividends of 116 cents per share this year and the 118 cents per share in FY 2022. Based on the latest Westpac share price, this represents yields of 4.5% and 4.6%, respectively, over the next two years.

Citi revealed that it likes Westpac due to its improving outlook and the potential for earnings upgrades over the coming years. Especially given its bold cost reduction plans.

The broker said: “The premise of multi-year core earnings upgrades, layered on sector-wide asset quality improvements, leave WBC with a differentiated investment thesis. It remains our sole Buy in a sector that has rallied strongly in the COVID recovery.”

The post Why analysts rate Westpac (ASX:WBC) and this dividend share as buys appeared first on The Motley Fool Australia.

More reading

• Westpac’s (ASX:WBC) double life insurance divestment looms
• Westpac (ASX:WBC) share price dips following vehicle finance sale
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak
• Top brokers name 3 ASX shares to buy next week
• Brokers name 2 ASX dividend shares to buy

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 Accent Group. 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 Pro Medicus Limited (ASX: PME) share price has been an outstanding performer in 2021.

Since the start of the year, the health imaging technology company’s shares have raced 61% higher.

This means the Pro Medicus share price is now up a remarkable 110% since this time last year.

Can the Pro Medicus share price keep on rising?

Unfortunately, one leading broker is calling a top on the rampant Pro Medicus share price run.

According to a note out of Bell Potter from late last week, the broker has retained its hold rating with an improved price target of $49.00.

Based on the latest Pro Medicus share price of $57.00, this implies potential downside of 14% over the next 12 months.

What did the broker say?

Bell Potter recognises Pro Medicus as a quality company and notes that the moat around its earnings continues to widen as the use of sophisticated imaging technology continues to expand.

However, the “eye watering multiples” its shares trade on means the broker doesn’t see enough value right now to consider it a buy.

It commented: “We have a positive view of the company, although maintain our Hold rating based on valuation.”

Positioned for strong long term growth

Although Bell Potter may be waiting for a pullback before rating the Pro Medicus share price as a buy, it has spoken very positively about its long term growth prospects. This is due to its relatively modest market share at present.

It explained: “Despite encouraging progress with new business wins, we estimate PME’s share of market at 3% to 5% (in the market for radiology image viewing), hence there remains a vast horizon of potential new business opportunity, all of which may reasonably be expected to come to market over the next 2 decades.”

“Increasingly we expect new business will come from second and third tier healthcare systems operating below the pre-eminent Institutional level healthcare systems (i.e. Northwestern, UCLA, Yale). The contract wins announced to the market over the LTM included three such deals (Medstar, Intermountain & Vermont). While these clients maintain a lower profile, their average deal size remains highly attractive business. The Intermountain Healthcare deal (January 2021) was one of the largest deals in PME’s history ($40m over 7 years, covering 24 hospitals and 200 outpatient clinics),” the broker added.

The post Top broker gives its verdict on the Pro Medicus (ASX:PME) share price appeared first on The Motley Fool Australia.

More reading

• Investing $20k into these ASX shares 10 years ago would have made you very rich
• Pro Medicus (ASX:PME) share price jumps 7% following broker notes
• Top brokers name 3 ASX shares to sell today
• Why Afterpay, Core Lithium, De Grey Mining, & Pro Medicus are storming higher
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5

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 Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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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