• Why 4DMedical, Block, Judo, and Mesoblast shares are pushing higher today

    A man sees some good news on his phone and gives a little cheer.

    A man sees some good news on his phone and gives a little cheer.

    The S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped deep into the red. At the time of writing, the benchmark index is down 1.4% to 7,736 points.

    Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising:

    4DMedical Ltd (ASX: 4DX)

    The 4DMedical share price is up 3% to 81 cents. This follows news that US President Biden has signed a six-bill, US$460 billion package on Saturday, approving full-year funding for the Department of Veterans Affairs among other offices. The new funding will include screening technologies, which 4DMedical could benefit from greatly.

    Block Inc (ASX: SQ2)

    The Block share price is up 4% to $121.58. This follows an equally strong night of trade for the payments company’s shares on Wall Street on Friday. Block’s shares have now doubled in value since the start of November.

    Judo Capital Holdings Ltd (ASX: JDO)

    The Judo Capital share price is up 4% to a 52-week high of $1.42. Investors have been buying this small business lender’s shares since the release of a broker note out of Goldman Sachs last week. Its analysts put a buy rating and $1.66 price target on the company’s shares. They said: “We think the market’s skepticism around the at-scale NIM focuses on the lending spread assumption of mid-4%, given the 1H24 spread was <4%.”

    Mesoblast Ltd (ASX: MSB)

    The Mesoblast share price is up 6.5% to 33.5 cents. This has been driven by news that the biotech company has been given a big boost from the US FDA. The federal agency revealed that it will support an accelerated approval pathway for rexlemestrocel-L under the existing Regenerative Medicine Advanced Therapy designation. It is Mesoblast’s allogeneic mesenchymal precursor cell product for patients with end-stage ischemic heart failure with reduced ejection fraction and a left ventricular assist device.

    The post Why 4DMedical, Block, Judo, and Mesoblast shares are pushing higher today appeared first on The Motley Fool Australia.

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    *Returns as of 1 February 2024

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

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  • Leading brokers name 3 ASX shares to buy today

    Woman in celebratory fist move looking at phone

    Woman in celebratory fist move looking at phone

    With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

    Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

    Flight Centre Travel Group Ltd (ASX: FLT)

    According to a note out of Citi, its analysts have retained their buy rating and $24.15 price target on this travel agent’s shares. The broker has been reviewing the travel sector following earnings season. Flight Centre has come out of its review favourably, with the broker continuing to prefer it over its rivals. Particularly given probable corporate travel market share gains in the ANZ region. The Flight Centre share price is trading at $21.54 on Monday.

    Goodman Group (ASX: GMG)

    A note out of Macquarie reveals that its analysts have retained their outperform rating on this industrial property company’s shares with an improved price target of $34.89. This follows a post-earnings season review of the listed property sector. Macquarie was pleased with Goodman’s performance and highlighted the company as a top pick. Especially given its potential to deliver double-digit earnings growth over the coming years. The Goodman share price is fetching $30.47 today.

    IDP Education Ltd (ASX: IEL)

    Analysts at Goldman Sachs have retained their buy rating and $26.60 price target on this language testing and student placement company’s shares. Goldman acknowledges that IDP Education continues to be impacted by regulatory changes that are restricting the flow of international students. However, it points out that the company is well positioned to capitalise when conditions normalise given improving student placement market share and investments into its network and platforms. The IDP Education share price is trading at $18.85 today.

    The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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    Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Goldman Sachs Group, Goodman Group, and Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group, Goodman Group, and Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why are CSL shares falling today?

    Cropped shot of an attractive young female scientist working on her computer in the laboratory.Cropped shot of an attractive young female scientist working on her computer in the laboratory.

    The CSL Ltd (ASX: CSL) share price is down 2% in early trading as the ASX healthcare share feels the effects of the ASX stock market sell-off. CSL shares also went ex-dividend today.

    On Friday in the US market, there was a sizeable decline in a number of stocks. Nvidia fell 5.5%, Eli Lilly dropped 2.3%, Microsoft declined 0.7%, Tesla fell 1.8% and so on. The S&P/ASX 200 Index (ASX: XJO) is currently down by 1.3%.

    Ex-dividend day

    One of the factors that may be impacting CSL shares today is that it went ex-dividend.

    An ex-dividend date tells the market when new investors buying shares will miss out on the upcoming dividend. There has to be a cut-off point for deciding who will and who won’t receive the dividend.

    Anyone who buys today is missing out on the interim dividend payment. Investors who bought CSL shares last week are eligible to receive the dividend, assuming they’re still shareholders on the record date (tomorrow).

    How much is being paid?

    CSL is going to pay a dividend of US$1.19 to shareholders, which at the time of the FY24 first-half result translated into approximately A$1.81 per share (an increase of 12%).

    At the current exchange rates, the upcoming payment equates to A$1.80 per share.

    CSL is expecting to release information about exchange rates for Australian and New Zealand dollar payments on 14 March 2024.

    The ASX healthcare share is planning to pay this dividend on 3 April 2024, which is only a few weeks away.

    CSL was able to deliver a bigger dividend after growing net profit after tax (NPAT) by 17% to US$1.9 billion in its FY24 first-half result. It also reported underlying earnings per share (EPS) growth of 11% to US$4.18.

    Profit expectations

    The company is expecting to report underlying NPATA of between US$2.9 billion to US$3 billion, which would be growth of between 13% to 17%.

    Management thinks the business is in a strong position to deliver annualised double-digit earnings growth over the medium term.

    On Commsec, the estimates imply the CSL share price is currently valued at 30 times FY24’s estimated earnings. It could pay an annual dividend of A$4, according to Commsec, which puts the forecast forward dividend yield at 1.4%.

    The post Why are CSL shares falling today? appeared first on The Motley Fool Australia.

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    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 positions in and has recommended CSL, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended CSL and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why is the Mesoblast share price jumping 16% on Monday?

    Happy shareholders clap and smile as they listen to a company earnings report.

    The market may be tumbling on Monday but the same cannot be said for the Mesoblast Ltd (ASX: MSB) share price.

    In early trade, the biotechnology company’s shares jumped 16% to 36.5 cents.

    Mesoblast’s shares have eased back a touch since then but remain up approximately 7% at the time of writing.

    Why is the Mesoblast share price jumping?

    Investors have been bidding the company’s shares higher this morning after it released an update on its rexlemestrocel-L therapy.

    It is Mesoblast’s allogeneic mesenchymal precursor cell (MPC) product for patients with end-stage ischemic heart failure with reduced ejection fraction (HFrEF) and a left ventricular assist device (LVAD).

    According to the release, following a meeting with the U.S. Food and Drug Administration (FDA) in February, it has been advised that the federal agency will support an accelerated approval pathway for rexlemestrocel-L under the existing Regenerative Medicine Advanced Therapy (RMAT) designation.

    The company highlights that the FDA’s comments indicated that the presented results may support a reasonable likelihood of clinical benefit of MPCs against mortality in LVAD patients, consistent with the criteria for accelerated approval.

    Mesoblast CEO, Dr. Silviu Itescu, commented:

    We are very pleased with FDA’s feedback that the presented results from our pivotal study of rexlemestrocel-L in end-stage HFrEF patients with LVADs may support an accelerated approval. We intend to request a pre-Biologics License Application (BLA) meeting to discuss data presentation, timing and FDA expectations for an accelerated approval filing.

    This certainly could be good news for both the company and sufferers. Mesoblast notes that every year in the United States over 100,000 patients progress to end-stage HFrEF. In these patients, more than 2,500 life-prolonging LVADs are implanted in the US annually, of whom approximately 80% undergo the procedure as destination or permanent therapy.

    The Mesoblast share price is now up approximately 25% since this time last month. Though, it remains down by a sizeable 63% on a 12-month basis.

    The post Why is the Mesoblast share price jumping 16% on Monday? appeared first on The Motley Fool Australia.

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    *Returns as of 1 February 2024

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

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  • This ASX 300 mining share could deliver a 60%+ return in 2024

    A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

    A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

    If you’re not averse to investing in the mining sector and are on the lookout for big returns, then it could be worth taking a closer look at one ASX 300 mining share.

    That mining share is Develop Global Ltd (ASX: DVP), which is an exploration, development, and underground mining services company.

    It owns two advanced Copper-Zinc projects near Port Hedland in the Pilbara region of Western Australia – the Sulphur Springs project and the Whim Creek Project.

    In addition, it owns the high-grade zinc-copper-lead-gold-silver Woodlawn project in New South Wales.

    Why is it an ASX 300 mining share to buy?

    Bell Potter was pleased with the company’s performance during the first half, noting that its revenue was ahead of expectations. It commented:

    DVP reported revenue of $65.8m was 5% ahead of our $62.5m estimate and up 162% YoY, driven by increased underground development and mining activity at the Bellevue Gold mine. Underlying EBITDA of $6.6m was lower than our $11.2m forecast and higher than -$5.1m in the prior period. This miss was due to higher-than-expected share-based payments and overheads.

    Looking ahead, the broker highlights that the ASX 300 mining share is positioned well thanks to growing mining services revenue and the upcoming Woodlawn restart. It adds:

    The forthcoming restart of Woodlawn operations (we expect by early CY25) coincides with growing revenue generation from the company’s underground mining services business, underpinning a ramp up in earnings FY24-26. A strong balance sheet and funds expected to be raised from deep-in-the-money options de-risks project financing for Sulphur Springs and Pioneer Dome. These developments represent medium term earnings growth drivers.

    Big returns

    Bell Potter has a buy rating and $4.10 price target on the company’s shares.

    Based on its current share price of $2.47, this implies potential upside of 66% for investors over the next 12 months.

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

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  • I think these ASX stocks are bargain buys after reporting season

    footwear asx share price on watch represented by look holding shoe and looking intentlyfootwear asx share price on watch represented by look holding shoe and looking intently

    ASX reporting season was fascinating to me, with a number of businesses reporting financials that were stronger than previously thought. I’m going to write about two ASX stocks that seem like bargains to me.

    The economy and households overall seem to have done better than expected, though there is pain in some places.

    With retail spending holding up quite well and the economy strengthening in the coming years, I think a couple of these ASX retail shares look like good buys.

    Universal Store Holdings Ltd (ASX: UNI)

    The Universal Store share price is down 22% from February 2023 and it’s down 45% from November 2021. I think it looks great value considering its result and potential growth.

    This business operates premium youth fashion brands, with the primary business being Universal Store. It operates the THRILLS and Worship brands within the CTC business, and it’s rolling out Perfect Stranger as a standalone retail store

    Universal Store’s FY24 half-year result showed 8.5% overall sales growth to $158 million, with Universal Store sales down 1.4% to $133.2 million, Perfect Stranger sales up 59.7% to $6.6 million and CTC sales up 4.2% to $25.3 million.

    It also reported an 80 basis point (0.80%) increase in the gross profit margin to 59.7%. Statutory net profit after tax (NPAT) grew by 16.7% to $20.7 million, while underlying earnings before interest and tax (EBIT) increased by 8.1% to $30.8 million, despite all of the spending on opening new stores.

    It opened six new stores during the first half – the store opening program is one of the main reasons I think the company has a promising future as it increases scale.

    The ASX stock impressively grew its interim dividend by 18% to 16.5 cents.

    According to the projections on Commsec, the ASX retail share is valued at under 13 times FY24’s estimated earnings and 10 times FY26’s estimated earnings. It could pay a grossed-up dividend yield of 9.6% in FY26.

    Accent Group Ltd (ASX: AX1)

    Accent acts as the distributor of a number of global shoe brands including Skechers, Vans, Kappa, Hoka, Dr Martens and CAT. It’s also responsible for its own businesses including The Athlete’s Foot, Stylerunner, Glue Store and Nude Lucy.

    The Accent share price is down 16% from 14 February 2024 and down 24% from 19 April 2023.

    Keeping in mind that HY24 was a 26-week period and HY23 was a 27-week period, owned sales fell 2% to $733 million, gross profit increased 0.6% to $414.9 million, the ASX stock’s EBIT dropped 21% to $72.3 million and net profit after tax declined 27.6% to $42.2 million.

    Sales and net profit declining is not exactly a positive. But, I believe it’s a cyclical decline that can turn around in FY25 onwards. It’s also opening up a compelling valuation to buy at. Total owned sales in the year to date at the end of January were up 1.6%.

    It continues to open new stores that can boost sales in the short term and the longer term, which can help with total sales and operating leverage.

    According to Commsec’s numbers, the Accent share price is valued at 14 times FY25’s estimated earnings and 12 times FY26’s estimated earnings. It could pay a grossed-up dividend yield of 10.3% in FY26.

    The post I think these ASX stocks are bargain buys after reporting season appeared first on The Motley Fool Australia.

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    *Returns as of 1 February 2024

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    Motley Fool contributor Tristan Harrison has positions in Accent Group. 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 Scott Phillips.

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  • Want to make big returns? ASX small-cap shares are poised to outperform

    Kid on a skateboard with cardboard wings soars along the road.Kid on a skateboard with cardboard wings soars along the road.

    ASX small-cap shares have been battered and bruised over the last few years, but now might be the time to look at those businesses with smaller market capitalisations.

    The broker Wilsons recently pointed out that ASX small-cap shares typically underperformed large caps in the lead-up to an economic slowdown, and this cycle had been “no exception”, with small-cap ASX shares underperforming “significantly” since 2021.

    However, Wilsons said the growing economic data of resilience, combined with easing inflation pressures, could “provide the foundations for a strong comeback in small cap benchmarks in 2024 and 2025 as global and domestic economic growth picks up again.”

    Here’s why the broker thinks investors should like (ASX) small-cap shares.

    Cheaper valuations

    Wilsons said small-caps were still trading at a “very wide and historically attractive discount relative” to large-cap stocks. Global small caps were supposedly trading at the “largest discount relative to large caps in over 20 years”.

    In previous periods, when small caps have traded at large discounts, they have gone on to deliver strong returns over the next 12 months, particularly when economic conditions and the official policy backdrop turn supportive.

    Economies to rebound?

    Wilsons suggested (ASX) small-cap shares outperformed large caps in the early, or expansionary, stages of the economic cycle as growth picks up again.

    The broker pointed to 2009 and 2020 as the last two times small caps were cheap, which then saw strong performance for the smaller businesses.

    Interest rate cuts

    What happens with interest rates can also have an essential influence on performance at the smaller end of the market.

    Wilsons said small caps have historically outperformed large caps in the year after an interest rate peak as policy is eased.

    On this topic, Wilsons wrote:

    We are cognizant of the risk of the lagged impact of tighter monetary policy as well as the higher-for-longer rate scenario. However, in our view, there are encouraging signs of a soft-landing scenario for both the US and global economy. The Australian economy also appears on track for a soft landing in 2024 followed by a growth pick up next year in response to lower policy rates.

    While it may not be a perfectly smooth ride, with valuations looking compelling, and the prospect of easier monetary policy encouraging a pick-up in growth over the next 12 to 18 months, we expect the small company asset class to perform well over the coming year and most likely beyond.

    My thoughts on ASX small-cap shares

    I agree with Wilsons, there are a number of attractive opportunities to be found on the ASX. I’m personally looking closely at names like Airtasker Ltd (ASX: ART) and Close The Loop Ltd (ASX: CLG) which are growing revenue, improving margins and have appealing growth potential.

    Some small-cap names have already soared in the last few months, with a few taken over by buyers.

    I think quality smaller companies are capable of outperforming bigger businesses over the long term because their growth runways are longer.

    The post Want to make big returns? ASX small-cap shares are poised to outperform appeared first on The Motley Fool Australia.

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    Motley Fool contributor Tristan Harrison has positions in Close The Loop. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Close The Loop. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has recommended Close The Loop. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • This ASX dividend share has soared 450% in a year! Is it still a buy?

    Woman sitting and looking at her phone smiling watching the share price go upWoman sitting and looking at her phone smiling watching the share price go up

    The ASX dividend share Step One Clothing Ltd (ASX: STP) has seen its share price rocket to the stars over the past year. Can the online retail company still be good value after its mammoth rise?

    Step One generated good growth in the FY24 first-half result, which was much more than the market had expected a year ago.

    Earnings recap

    The ASX dividend share reported 25.5% revenue growth to $45.1 million, a gross profit margin improvement from 80.7% to 81.2%, earnings before interest, tax, depreciation, and amortisation (EBITDA) growth of 35.6% to $10.1 million, and net profit after tax (NPAT) growth of 34.7% to $7.1 million.

    Revenue growth in Australia was only 8.9% to $26.2 million, while the United Kingdom saw 38% revenue growth to $14.7 million, and revenue in the United States jumped 256% to $4.1 million. Amazon sales have played an important part in sales growth in the UK and US, with the platform accounting for 6.1% of HY24 revenue, up from 4.9% in the prior year.

    The company advised the number of customer orders increased by 25.1%, while the average order value (AOV) increased by 4.7% to $94.47. this was driven by a “greater emphasis on upselling and volume-based promotional discounts.”

    It paid a dividend per share of 4 cents.

    Is the Step One share price a buy?

    The company is doing a number of things to try to grow in Australia, the UK and the US, while ensuring a balance between growth with profitability across all markets.

    The ASX dividend share wants to grow its women’s line, expand the customer funnel through partnerships with retailers and other organisations, broaden sales channels and marketplaces, expand the distribution of the women’s lines to the US, invest in its capabilities and product innovation, and continue to improve the customer experience.

    Based on the forecast numbers on Commsec, the Step One share price is valued at 30x FY24’s estimated earnings and 27x FY25’s estimated earnings.

    The business will need to keep growing at a good pace to justify the current valuation, but the outlook is bright, particularly if Step One can expand in other countries such as Canada, New Zealand and so on.

    The post This ASX dividend share has soared 450% in a year! Is it still a buy? appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Goldman Sachs says these ASX tech stocks are top buys

    Woman on her phone with diagrams of tech sector related elements linking with each other.

    The team at Goldman Sachs has been busy reviewing all the results that were released during earnings season.

    Three ASX tech stocks that the broker was pleased with are listed below. Here’s what the broker is saying about their results or outlooks:

    Life360 Inc (ASX: 360)

    This location technology company was a standout for Goldman Sachs during earnings season. It commented:

    360’s re-rate is only beginning, in our view, as it delivers solid subscription and EBITDA growth from the core business while opening up significant upside optionality via advertising monetisation. FY24E EBITDA guidance appears conservative relative to the operating leverage demonstrated in FY23A and provides visibility to >50% growth in both FY24/25E.

    Goldman has a buy rating and $14.20 price target on the ASX tech stock.

    Macquarie Technology Group Ltd (ASX: MAQ)

    Goldman was impressed with this data centre, telco, and cloud services company’s performance and believes is well-positioned for growth. It also highlights its attractive valuation compared to peers. It said:

    MAQ is poised to demonstrate the acceleration of its data centre growth pipeline through 2024, both from IC3W (now DA approved and underway, with potential to be upsized from 38MW to 45MW) and a new site in the Sydney metro area. The core Cloud Services / Telco businesses are performing well in the interim, and valuation remains compelling relative to listed peers.

    The broker has a buy rating and $93.00 price target on its shares.

    Readytech Holdings Ltd (ASX: RDY)

    A final ASX tech stock that has been given the thumbs up is enterprise software provider Readytech. While the broker wasn’t blown away by its update, it is feeling very positive on its outlook. It said:

    RDY slightly pushed out its revenue targets, though we highlight that the 1H24 miss was driven by lumpy implementation revenue as subscription continued to grow at a mid-high teens rate. The margin inflection point has arrived and we see material upside to both Visible Alpha Consensus Data estimates and valuation upon execution towards mid-term targets.

    Goldman has a buy rating and $4.25 price target on its shares.

    The post Goldman Sachs says these ASX tech stocks are top buys appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, and ReadyTech. The Motley Fool Australia has recommended ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Buy this ASX 200 biotech stock for a 20%+ return

    medical asx share price represented by doctor giving thumbs up

    medical asx share price represented by doctor giving thumbs up

    Telix Pharmaceuticals Ltd (ASX: TLX) shares are up approximately 75% over the last 12 months.

    Investors have been buying the ASX 200 biotech stock after it reported explosive growth in FY 2023 last month.

    The company delivered a 214% increase in total revenue to $502.5 million thanks to strong demand for its Illuccix product.

    Also growing rapidly was the company’s adjusted EBITDA, which more than doubled to $58.4 million from a loss of $67.8 million a year earlier.

    The good news is that the team at Bell Potter believe that its strong growth can continue. For example, the broker is forecasting a 45% jump in EBITDA to $84.9 million in FY 2024.

    And while Bell Potter then expects a decline in EBITDA to $68.7 million in FY 2025 due to an increase in costs, it believes the ASX 200 biotech stock’s EBITDA will then rebound massively the following year to a whopping $211.1 million.

    Is this ASX 200 biotech stock good value?

    Despite its strong gain over the past 12 months, Bell Potter still sees plenty of value in the company’s shares.

    This morning, it has retained its buy rating with an improved price target of $14.50. This implies potential upside of 24% for investors over the next 12 months.

    As well as being impressed with the ASX 200 biotech stock’s performance in FY 2023, the broker sees big positives from the announcement of plans to acquire ARTMS. It is a company specialising in the physics, chemistry and materials science of cyclotron produced radionuclides. Bell Potter commented:

    The acquisition is crucial for the supply of 89Z and the pending roll out of Zircaix for renal cancer imaging. TLX is validating multiple production locations for 89Zr in the US using the ARTMS core technology. The company also owns significant quantities of ultra pure 89Y being the raw material for production of 89Zr.

    We estimate the yield is ~50x that from a Gallium generator and will potentially allow for greater dosing flexibility and vastly reduce the cost of goods for at least a portion of the Illuccix doses sold. With this in mind the company intends to amend the NDA for Illuccix to support ARTMS QIS cyclotron production.

    The post Buy this ASX 200 biotech stock for a 20%+ return appeared first on The Motley Fool Australia.

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