Category: Stock Market

More reading

• ANZ (ASX:ANZ) share price on watch after reporting $2.9bn half year profit
• Is the SEEK (ASX:SEK) share price in the buy zone?
• Why Soul Patts (ASX:SOL) is such a strong ASX dividend share
• 2 buy-rated ASX dividend shares for income investors
• 5 things to watch on the ASX 200 on Wednesday

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post LIVE COVERAGE: ASX to fall; ANZ delivers $2.9 billion profit, increases dividend appeared first on The Motley Fool Australia.

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

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price will be one to watch closely on Wednesday.

This follows the release of the banking giant’s highly anticipated half year results.

How did ANZ perform in the first half?

For the six months ended 31 March, ANZ reported a statutory profit after tax of $2,943 million and cash earnings from continuing operations of $2,990 million. This was up 45% and 28%, respectively, on the second half of FY 2020.

Boosting ANZ’s result was a net credit provision release of $491 million for the half. This is up from a net release of $150 million during the first quarter.

The bank advised that despite ongoing uncertainty, the credit provision release is a result of the improving economic outlook over the course of the half, as well as some loan volume reductions. It notes that home loan and small business customers have also behaved prudently by building savings buffers through the half.

This ultimately led to ANZ reporting earnings per share of 105.3 cents, return on equity of 9.7%, and a CET1 ratio of 12.4%.

Positively for shareholders and the ANZ share price today, this allowed the ANZ board to declare a fully franked interim dividend of 70 cents per share.

How does this compare to expectations?

According to a note out of Goldman Sachs, its analysts were expecting cash earnings (pre-one offs) of $3,073 million and a fully franked interim dividend of 60 cents per share.

So, while it has fallen a touch short of expectations for earnings, it has smashed them for dividends.

The latter potentially could bode well for the ANZ share price on Wednesday.

What were the drivers of its result?

ANZ’s Chief Executive Officer, Shayne Elliott, advised that all sides of the business performed well, which was complemented by cost reductions.

He said: “Following the trends of the first quarter, all parts of our business performed well. Costs were down 2% and we also increased investment in new digital capability that will provide ongoing productivity improvements and better customer outcomes.”

“Australia Retail & Commercial had another good half, becoming the third largest home lender in the market. Deposits performed well, with retail and small business customers behaving prudently by building solid savings and offset balances through the half,” he added.

And while its Institutional business reported lower revenues, this was in line with expectations.

Mr Elliott explained: “Lower revenues in our Institutional business were largely expected due to the impact of falling interest rates as well as a normalisation of Markets revenue after an exceptionally strong 2020. Our disciplined focus on credit management has been a positive with our largest customers going into the pandemic from a position of strength and adapting fast to the rapidly changing environment.”

Positively, its New Zealand business performed strongly.

“New Zealand continued its recent strong performance with record lending growth combined with disciplined cost management. This is a well-run business that is an important part of our overall portfolio and is well-placed to manage increased regulatory capital demands,” the Chief Executive advised.

Outlook

Mr Elliott appears cautiously optimistic on the future.

He said: “There is still significant uncertainty. You only need to look at how the pandemic is playing out overseas, as well as recent lock-downs, to realise how quickly the situation can escalate.”

Before adding: “ANZ is in a strong position both financially and operationally. We are well capitalised and our disciplined approach to costs over many years has us well placed to invest in opportunities to grow our business in targeted segments. The work to digitise core processes and platforms continues at pace and this will be more visible to customers towards the end of the year.”

The ANZ share price is up 25% since the start of the year.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Morgans just added these ASX shares to its “best ideas” buy list
• ASX 200 Weekly Wrap: Shares have average week but a great month
• ANZ (ASX:ANZ) share price lower after announcing $817m earnings impact
• Why ASX bank shares may be facing a big sell-off in the next few weeks

Motley Fool contributor James Mickleboro 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.

The post ANZ (ASX:ANZ) share price on watch after reporting $2.9bn half year profit appeared first on The Motley Fool Australia.

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

The SEEK Limited (ASX: SEK) share price was on form again on Tuesday.

The job listings giant’s shares jumped 7% at one stage to reach a record high of $32.92 before closing the day at $31.30.

Why did the SEEK share price hit a record high?

Investors were scrambling to buy the company’s shares yesterday following the release of an update.

That update revealed that all conditions precedent to completion of the Zhaopin transaction have been satisfied. Following its selldown, management intends to return some of the proceeds to shareholders via a 20 cents per share special dividend.

In addition to this, SEEK revealed that its performance has been stronger than expected in FY 2021. As a result, it has upgraded its guidance.

It now expects revenue of ~$1,740 million and EBITDA of ~$510 million in FY 2021. This compares to previous guidance of ~$1,700 million and ~$510 million, respectively.

And on the bottom line, SEEK’s reported net profit after tax is expected to be $150 million. This is up from $100 million previously.

Is it too late to invest?

Analysts at Goldman Sachs believe it could be too late to invest and feel its shares are fully valued at the current level.

According to a note, the broker has retained its neutral rating but lifted its price target by 11% to $30.40.

Based on the current SEEK share price, this implies potential downside of approximately 3% over the next 12 months.

What did Goldman say?

Goldman Sachs was pleased with SEEK’s update and its stronger than expected guidance upgrade.

It said: “SEK is experiencing significant leverage to the strong ANZ economic recovery, from both improving volumes, but also the resulting increased yield per listing due to dynamic pricing. This is not entirely unexpected, and we had expected a guidance upgrade given strong recent ANZ data points. However, we had also expected increased investment, mitigating the size of the EBITDA upgrade. We are also pleased to see the stronger revenues/commentary around Asia, given this segment delivered what we viewed as a particularly soft 1H21 result.”

However, it believes that there are better ways for investors to benefit from the ANZ economic recovery – News Corporation (ASX: NWS) and Nine Entertainment Co Holdings Ltd (ASX: NEC).

It explained: “Overall we revise our SEK earnings estimates to reflect the stronger underlying result (i.e. EBITDA +5% / +7% / +10% in FY21-23E), but also incorporating the Zhaopin sell down. As a result our SEK EBITDA declines -1%/ -23%/ -20% in FY21-23E, but NPAT increases +11% /+5% /+10%. Our SEK TP increases +11% to A$30.40, reflecting the earnings upgrades & higher ESV value. We stay Neutral on SEK, as although it is delivering strong earnings’ momentum, we attribute the majority of this to the broader macro recovery, and would prefer play this through News Corporation or Nine.”

More reading

• ASX 200 rises, Flight Centre drops, Super Retail grows
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher
• ASX 200 up 0.2%: SEEK hits record high, Flight Centre tumbles
• SEEK (ASX:SEK) share price jumps 7% to record high on trading update
• These ASX 200 shares are tracking the Aussie economy higher in 2021

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is the SEEK (ASX:SEK) share price in the buy zone? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ti9cBz

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), also known as Soul Patts, is one of the strongest ASX dividend shares around.

What is Soul Patts?

It’s an investment conglomerate that has been listed since 1903. That makes it one of the oldest businesses on the ASX.

Soul Patts started off as a pharmacy business but now it’s diversified across a number of sectors.

The business has been served by multiple generations of some families. More than 40 employees have worked for the company for over 50 years. Five generations of the Pattinson family have served the company, as have three generations of the Dixson, Spence, Rowe and Letters families.

The long-term nature of the employees means that the business itself can plan and act in the company’s long-term interests. They themselves are sizeable shareholders of the business, so they’re certainly aligned.

Diversification

One of the strongest things about the current Soul Patts business is that it’s invested in a number of sectors.

Some of the biggest ones include telecommunications, building products, resources, listed investment companies (LICs), financial services, agriculture, pharmacies, swimming schools and property.

In terms of actual businesses, it’s biggest listed investments includes TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Pengana International Equities Ltd (ASX: PIA), Pengana Capital Group Ltd (ASX: PCG), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT).

Flexible investment mandate

Soul Patts is not stuck being a telco or a bank like Telstra Corporation Ltd (ASX: TLS) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

This investment mandate gives Soul Patts the ability to pick whatever investment it wants in whichever sector it’s targeting, listed or unlisted.

It gives the investment team a wide array of potential opportunities which allows it to find the right ideas at the different points of economic cycles.

That’s how it has ended up with a portfolio ranging from agriculture to luxury retirement living.

Dividend growth

Soul Patts has a very impressive dividend record, particularly for an ASX share.

It has increased its dividend every year going back to 2000. Soul Patts has also paid a dividend every year going back to 1903, including through wars, recessions and COVID-19.

That dividend growth is funded by the cashflow of investment income from its portfolio. That comprises dividends, distributions and interest income.

Each year, Soul Patts pays a dividend from that net cashflow (after expenses). It holds back some of the cashflow to reinvest into more opportunities. This adds more cashflow, like a growing snowball that’s rolling downhill each year.

What’s the ASX dividend share’s yield?

At the current Soul Patts share price it offers a grossed-up dividend yield of 2.9%.

That’s not very high, the big search for yield by income investors has driven up share prices. However, the yield remains comfortably higher than what you can get in interest from the bank.

More reading

• 2 ASX dividend shares that keep growing their dividend every year
• 3 small caps ASX dividend shares offering big income
• 3 ASX dividend shares to buy today

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Soul Patts (ASX:SOL) is such a strong ASX dividend share appeared first on The Motley Fool Australia.

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

As was widely expected, on Tuesday the Reserve Bank of Australia elected to keep the cash rate on hold at the record low of 0.1%.

Unfortunately, this looks likely to remain the case for some time to come, possibly even years.

In light of this, dividend shares look likely to remain the best place to earn a passive income for the foreseeable future.

But which ASX dividend shares should you buy? Here are two to consider:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is this supermarket operator. It could be a good option for investors due to its strong business model, refreshed strategy, and positive long term outlook.

Goldman Sachs is a big fan of the company and last week put a buy rating and $20.50 price target on its shares. It continues to forecast solid growth in earnings and dividends over the coming years.

In respect to the latter, the broker is forecasting dividends per share of 62 cents in FY 2021 and 66 cents in FY 2022. Based on the current Coles share price of $16.50, this will mean fully franked yields of 3.75% and 4%, respectively, over the next two years.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

This airport operator could be a good option for patient investors. This is because with domestic tourism recovering and vaccines rolling out across the world, it may not be long until Sydney Airport’s terminals are packed full of passengers again.

One broker that is positive on the company is Goldman Sachs. It believes it is worth being patient with Sydney Airport and currently has a buy rating and $6.73 price target on its shares.

And while the broker isn’t expecting a material dividend yield this year, it is forecasting a swift recovery.

Based on the current Sydney Airport share price, its analysts are forecasting dividend yields of 1.6% in FY 2021 and then 4.5% in FY 2022.

More reading

• 3 reasons why Coles (ASX:COL) is a top ASX dividend share
• Vicinity (ASX:VCX) sees improvements as it struggles back to COVID-normal
• 2 of the best ASX 200 blue chip shares to buy today
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 buy-rated ASX dividend shares for income investors appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3xLq6M9

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.55% to 7,067.9 points.

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

ASX 200 expected to fall

It looks set to be a difficult day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.35% lower this morning. This follows a poor night of trade on Wall Street which saw the Dow Jones rise slightly but the S&P 500 fall 0.7% and the Nasdaq sink 1.9%. The latter could be bad news for local tech shares, which tend to follow the Nasdaq’s lead.

ANZ half year update

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price will be one to watch today when it releases its half year results. According to a note out of Goldman Sachs, its analysts are expecting the banking giant to report first half cash earnings (pre-one offs) of $3,073 million. This will be a massive 117% increase on the prior corresponding period, which of course was impacted by COVID-19. The broker is expecting this to allow the ANZ board to declare a fully franked interim dividend of 60 cents per share.

Oil prices storm higher

It could be a good day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) on Wednesday after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 2.1% to US$65.81 a barrel and the Brent crude oil price has climbed 2.1% to US$68.97 a barrel. Demand optimism has been lifting prices this week.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could come under pressure after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.7% to US$1,779.30 an ounce. This follows comments by US Treasury Secretary, Janet Yellen. She said that interest rates may need to rise to stop the US economy from overheating.

Nearmap guidance upgrade

The Nearmap Ltd (ASX: NEA) share price will be one to watch today following an after market update yesterday. According to the release, trading has remained strong and the company now expects to deliver annual contract value (ACV) of $128 million to $132 million in FY 2021. This compares to its previous guidance of $120 million to $128 million. It will also be a 20% to 24% increase on FY 2020’s ACV of $106.4 million.

More reading

• ASX 200 rises, Flight Centre drops, Super Retail grows
• 2 exciting ASX tech shares that have been tipped as buys
• Nearmap (ASX:NEA) share price on watch after upgrading guidance
• Struggling ASX gold shares just got upgraded by a top broker
• Will May make eight straight months of gains for the ASX 200?

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

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

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

The S&P/ASX 200 Index (ASX: XJO) went up by 0.6% to 7,068 points.

Here are some of the highlights from the ASX today:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price fell 4.6% after giving a trading update to investors.

Flight Centre said that it has seen record sales revenue in March after a more subdued January and February. There has been a significant uplift globally at the end of FY21’s third quarter.

March was comfortably higher than the previous COVID-19 record.

The turnover was up more than $100 million higher than February. That’s an increase of 32.7% month on month. It takes gross quarterly total transaction value back above $1 billion for the first time after the onset of COVID.

Flight Centre is currently expecting further growth in April. The recovery continues despite heavy restrictions in key markets.

The Australian corporate and leisure businesses and US leisure business are contributing strongly to the recent improvement.

Flight Centre said that the ending of jobkeeper means it has lost the $5 million to $7 million subsidy per month in Australia during the fourth quarter. It expects to recoup this if state borders stay open.

The ASX 200 business is continuing to target a return in profit before tax during FY22 on a month to month basis in both corporate and leisure.

It’s currently expecting FY21 second half losses to be broadly in line with the first half.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price went up 0.7% today in reaction to the trading update.

Super Retail has continued to see strong growth. It gave a trading update for the first 44 weeks of FY21.

Supercheap Auto sales were up 21%, Rebel sales were up 20%, BCF sales were up 59%, Macpac sales were up 17%. Overall sales went up by 28%.

Anthony Heraghty, the CEO of Super Retail, said:

Given the continued strength of customer demand, the group has maintained relatively subdued levels of promotional activity in the second half. As a result, the gross margin improvement which the group delivered in the first half has been maintained in the second half.

The group is in a well-stocked inventory position, which has benefited from the arrival of orders made in the first half. Higher shipping costs in the second half have impacted inventory costs but these have been partly offset by favourable currency movements.

As previously advised, second half operating expenses will reflect catch-up up projects deferred during COVID-19 and increased re-investment in the business.

SEEK Limited (ASX: SEK)

The SEEK share price went up around 2% after giving an update.

The employment business said that it announced that all conditions had been completed for the Zhaopin transaction. This will reduce the Zhaopin stake from 61.1% to 23.5%. Around $500 million of the total anticipated gross proceeds (almost $700 million) were received in April 2021.

SEEK said that it intends to pay a dividend of 20 cents per share. It’s now operating well within its pre-existing borrower group covenant limits including payment of the dividend.

Based on the transaction value, the ASX 200 share’s 23.5% ownership of Zhaopin is valued at $515 million.

SEEK has changed its FY21 guidance, excluding significant items. Revenue will be in the order of almost $1.6 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) will be in the order of $480 million. Seek’s share of net profit losses for its early stage ventures (ESV) will be in the order of $50 million.

The reported net profit is expected to be in the order of $140 million.

More reading

• Struggling ASX gold shares just got upgraded by a top broker
• Will May make eight straight months of gains for the ASX 200?
• 3 things you need to know about the RBA’s interest rate decision today
• Why AnteoTech, Domain, Flight Centre, & Nick Scali are sinking today
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 rises, Flight Centre drops, Super Retail grows appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3edl17M

Because of a number of favourable tailwinds including ageing populations, better technologies and treatments, and increased chronic disease burden, demand for healthcare services is expected to increase strongly over the next few decades.

As a result of this, the healthcare sector has been tipped as an area of the market to consider for long term investments.

But which healthcare ASX shares should you buy? Two that are highly rated are listed below:

Cochlear Limited (ASX: COH)

The first ASX healthcare share to look at is Cochlear. It is a global leader in the development, manufacture, and distribution of cochlear implantable devices for the hearing impaired.

After being hit hard by the pandemic, Cochlear bounced back incredibly strongly during the first half of FY 2021. In fact, for the six months ended 31 December, Cochlear recorded an underlying net profit of $125.3 million.

This was down just 4% in constant currency from its record first half profit a year earlier. It is worth remembering that the prior corresponding period was before COVID-19, which demonstrates just how quickly it has rebounded.

Positively, due to its strong market position and the industry’s high barriers to entry, Cochlear looks well-placed for growth over the long term. Especially given how hearing loss is typically a part of getting older and the number of over 65s is expected explode over the coming decades.

Macquarie is positive on the company. Its analysts currently have an outperform rating and $245.00 price target on Cochlear’s shares.

Pro Medicus Limited (ASX: PME)

Another ASX healthcare share to look at is Pro Medicus. It is a healthcare technology company that provides healthcare organisations with radiology information systems, picture archiving and communication systems, and advanced visualisation solutions.

Pro Medicus has been growing strongly over the last few years. This has been driven by its industry-leading technology and the structural shift away from legacy systems.

Positively, the company has continued this positive form in FY 2021. For example, in February the company reported a 7.8% increase in revenue to $31.6 million and a 25.9% jump in underlying profit before tax to $18.76 million.

The good news is that more of the same is expected in the second half. Particularly given how Pro Medicus has won a number of lucrative contracts with major healthcare institutions since the turn of the year.

Looking ahead, the company still has a large pipeline of sales opportunities that could be converted in the near future and drive further growth.

Goldman Sachs is a fan of Pro Medicus. The broker currently has a buy rating and $53.80 price target on its shares.

More reading

• Top ASX shares to buy in May 2021
• 2 highly rated ASX growth shares for May
• Fundie reveals why the Pro Medicus (ASX:PME) share price is still a buy
• The ASX healthcare shares Goldman Sachs rates as a buy
• Why this ASX share bull market could run for longer

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

The post 2 excellent healthcare ASX shares with strong long term growth potential appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/33aD2gE

If you’re a growth investor, then you’re in luck. The local share market is home to a number of top companies that have the potential to grow strongly in the future.

Three top ASX growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is this gaming technology company. While Aristocrat’s performance has been impacted greatly by the closure of casinos, it is beginning to rebound now the crisis is easing and casinos are reopening. Looking ahead, it looks well-placed for growth over the long term thanks to its industry-leading poker machines and its growing digital business. The latter has been a big winner from the pandemic and is generating material recurring revenues thanks to increased mobile gaming.

Citi is positive on Aristocrat Leisure. Its analysts currently have a buy rating and $40.60 price target on its shares.

NEXTDC Ltd (ASX: NXT)

NEXTDC is a leading data centre operator which has been benefiting greatly from the increasing amount of data being generated by consumers and businesses. This has certainly been the case during the pandemic thanks to the accelerating shift to the cloud. This led to a surge in demand for data centre capacity, underpinning strong revenue and operating earnings growth. Another positive is the significant amount of its future capacity already contracted, which will be supportive of growth over the next few years. This could be boosted further by its potential expansion into Singapore and Tokyo.

UBS is a fan of the company and has a buy rating and $15.40 price target on its shares.

Zip Co Ltd (ASX: Z1P)

A final growth share to look at is this buy now pay later provider. It has been growing at a rapid rate in recent years thanks to the growing popularity of the payment method and its international expansion. The latter has been a huge success thanks to its US-based QuadPay business. Pleasingly, QuadPay has a $5 trillion market opportunity, which gives it a significant runway for growth over the next decade. Zip has also recently launched in the UK market and has its eyes on further expansions in the near future.

Citi is also positive on Zip. Last month the broker upgraded its shares to a buy rating with an $11.30 price target.

More reading

• a2 Milk and Zip were among the most traded ASX shares last week
• These are the 10 most shorted shares on the ASX
• Why is the Zip (ASX:Z1P) share price falling on hard times?
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Aristocrat (ASX:ALL) share price up 7% this month, tipped to go higher

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 ZIPCOLTD FPO. 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.

The post 3 buy-rated ASX growth shares for investors in May appeared first on The Motley Fool Australia.

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

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:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is San Francisco-based app maker Life360.

It provides families with a market leading app which includes features such as real-time location sharing and notifications and Crash Detection and Roadside Assistance. These features are clearly resonating well with families, with Life360 recently revealing 28 million monthly active users.

Pleasingly, the company has just announced the acquisition of Jiobit for US$37 million. The addition of the provider of wearable location devices is very supportive of its growth strategy and opens up cross-selling opportunities.

Credit Suisse is a fan of the company and believes it is well-placed for growth. The broker currently has an outperform rating and $8.30 price target on its shares. This compares to the latest Life360 share price of $5.75.

Nearmap Ltd (ASX: NEA)

Another ASX tech share to look at is Nearmap. It is an aerial imagery technology and location data company.

Its aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this gives businesses the tools to scale quickly and bring their most important initiatives to life.

Nearmap has been growing at a strong rate over the last few years thanks to increasing demand for its services in the ANZ and North American markets. Positively, this has continued in FY 2021, with the company upgrading its guidance today.

Looking ahead, management appears confident that it is well-positioned for growth thanks to its recent $90 million capital raising and new growth initiatives. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Citi is bullish on the company. It currently has a buy rating and $3.10 price target on its shares. This compares to the latest Nearmap share price of $2.06.

More reading

• Nearmap (ASX:NEA) share price on watch after upgrading guidance
• Brokers name 3 ASX shares to buy now
• Life360 (ASX:360) share price climbs on ‘accelerating growth’
• Why Bingo, Life360, Tabcorp, & Vulcan shares are storming higher
• Life360 (ASX:360) share price jumps 9% to record high on acquisition news

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 Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Life360, Inc. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 exciting ASX tech shares that have been tipped as buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3teXt6z