The S&P/ASX 200 Index (ASX: XJO) is having another solid session. In afternoon trade, the benchmark index is up 0.5% to 7,652.8 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

AGL Energy Limited (ASX: AGL)

The AGL share price is up 10.5% to $8.82. This follows the release of the energy giant’s half-year results. AGL posted a 20% drop in revenue to $6,183 million but a whopping 358.6% jump in underlying profit after tax to $399 million. This strong profit growth was driven partly by higher wholesale electricity pricing. In light of this profit growth, the AGL board increased its interim dividend by 225% to 26 cents per share.

Cochlear Limited (ASX: COH)

The Cochlear share price is up 4% to $303.01. Investors have been buying this hearing solutions company’s shares after it upgraded its FY 2024 guidance. Cochlear now expects underlying net profit in the range of $385 million to $400 million, which will be a 26% to 31% increase year on year. It was previously guiding to underlying net profit of $355 million to $375 million. The upgrade was driven by stronger than expected cochlear implant revenue.

Mirvac Group (ASX: MGR)

The Mirvac share price is up 5% to $2.25. This is despite the property company reporting a sizeable profit decline for the first half. It reported operating profit of $252 million, down 17% on the prior corresponding period. Investors may have been expecting a larger decline.

News Corporation (ASX: NWS)

The News Corp share price is up 6.5% to $41.99. This has been driven by the release of the media giant’s second quarter update this morning. News Corp reported a 3% increase in quarterly revenue to US$2.59 billion and a 95% jump in net profit to US$183 million. Management said: “News Corp again saw growth in both revenue and profitability this quarter as we continue to realize the collective benefit of our strategic shift to digital and subscription revenues, and away from sometimes volatile advertising revenues.”

The post Why AGL, Cochlear, Mirvac, and News Corp shares are storming higher appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares rocketing over 10% today
• Guess which ASX 200 stock is jumping on a 95% profit surge
• AGL share price rockets 15% after half-year profit surge
• Cochlear shares jump 6% on guidance upgrade
• 5 things to watch on the ASX 200 on Thursday

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 Cochlear. The Motley Fool Australia has recommended Cochlear. 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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The materials sector can be merciless at times. Prone to the occasional oversupply and unceremonious price dumping, the ups and downs through cycles are not for the faint at heart. Few are likely as attuned to this experience as Tim Goyder after the agonising year that has transpired for the Liontown Resources Ltd (ASX: LTR) share price.

As chair and second-largest shareholder of the lithium developer, Goyder watched on while the lion’s share of his net worth evaporated during the last four months. From the height of $3.15 per share in 2023 to the sobering 95 cents on Wednesday afternoon, approximately $641 million has been wiped from the entrepreneur’s fortunes.

Where did it all go pear-shaped? More importantly, are Liontown’s prospects capable of reinstating Goyder’s billionaire status?

Lithium riches cost a king’s ransom

Between 2021 and early 2023, the lithium industry minted money like nobody’s business. A meteoric boom in electric vehicles outpaced supply at the time, sending the price of the battery ingredient to unbelievable heights.

Many shareholders — including board members, management, and founders — witnessed their on-paper wealth explode during this time. However, the price of admission turns out to be steep as the sector grapples with oversupply.

For Liontown Resources, the descending path has looked markedly different to the trajectory of lithium prices, illustrated above. The company’s share price and Goyder’s wealth were buttressed by a $3.00 per share proposed bid from lithium juggernaut Albermarle Corporation (NYSE: ALB).

Yet, the support was quickly dashed when Albermarle pulled the pin in October. Liontown resorted to tapping debt and equity markets to secure enough funding to develop its Kathleen Valley project independently.

Despite the shored-up finances, the market has had difficulty stomaching the company’s market capitalisation. The Liontown share price has toppled 45% since October, reflecting the reinstated uncertainty of a pre-revenue mining company.

What’s next for the Liontown share price?

Forging forward, Liontown is continuing with its development efforts at Kathleen Valley. Now chewing through investor capital and saddled with debt, the priority is getting the project to production for Liontown to become self-sustaining. As of last week, the project is at 72% completion.

Following in the footsteps of other ASX lithium shares, the company revealed in its quarterly activities report that it is assessing its operations due to ‘short to medium-term lithium price forecasts’. Specifically, Liontown is weighing up delaying its mine expansion until market conditions improve.

Fortunately, some commentators are cautiously optimistic about lithium from here. For example, Jon Bishop of Jarden Securities believes the bottom of the cycle is near. Additionally, restocking in China from late March could boost the electrifying material, according to S&P Global Commodity Insights.

It all sounds positive for the Liontown share price. However, a key moment will come when the miner begins producing lithium. Only then will shareholders know for sure whether it can produce material profitably at the prevailing price.

The post Liontown’s share price crash has cost its chair $641 million. What now? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 7 ASX lithium shares going gangbusters today
• 2 dirt cheap ASX lithium shares to buy when the rout is over
• 5 ASX mining shares with projects being spruiked by the Australian Federal Government
• Where will the bottom be for the scorched lithium price?

Motley Fool contributor Mitchell Lawler has positions in Albemarle. 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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The Westpac Banking Corp (ASX: WBC) share price has continued its positive run on Thursday.

So much so, the banking giant’s shares have just hit a 52-week high of $24.40.

This means that its shares are up an impressive 18% since the start of November.

Why is the Westpac share price at a 52-week high?

Investors have been piling into the banking sector over the last couple of months on the belief that tough trading conditions and competition pressures are now easing.

In addition, the recent re-rating of bank shares to higher multiples has been triggered by the prospect of multiple rate cuts and optimism over the economy and banks’ earnings over the next two years according to analysts at Morgan Stanley.

It recently noted that ASX bank shares are now trading on earnings multiples greater than 15 times. This is higher than the pre-COVID 10-year average of approximately 12.2 times earnings.

Clearly optimism is high. But is it too late to invest? Let’s find out.

Where next for Westpac’s shares?

Most brokers believes that the Westpac share price is either overvalued or fully valued.

For example, Morgan Stanley has an underweight rating and $21.70 price target, and Macquarie has an outperform rating but a price target ($24.00) which is lower than where its shares currently trade.

But there is one broker that is more bullish than the rest – Ord Minnett.

A recent note out of the broker reveals that its analysts have an accumulate rating and $28.00 price target on the bank’s shares. This implies potential upside of almost 15% for investors over the next 12 months.

And with the broker forecasting a $1.44 per share fully franked dividend in FY 2024 (and FY 2025), the total 12-month potential return stretches to 5.9%.

Time will tell which broker makes the right call.

The post Why has the Westpac share price just hit a 52-week high? appeared first on The Motley Fool Australia.

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• Want to buy ASX 200 bank shares? You need to read this
• 7 must-see results this ASX reporting season before buying or selling
• ASX passive income: Is Westpac stock a buy, sell, or hold?
• Here’s what Westpac says the RBA will do with interest rates next week
• 3 high-yield ASX shares for considerable passive income (7%-plus dividends!)

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie 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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There are a number of S&P/ASX 200 Index (ASX: XJO) stocks that have handed investors outsized gains so far in 2024.

But one company is racing ahead of the pack.

Any guesses?

If you said ASX 200 tech stock Megaport Ltd (ASX: MP1) give yourself a virtual gold star.

Despite slipping 1.1% in afternoon trade today, the Megaport share price is up a whopping 39.3% since the opening bell kicked off trading for 2024 on 2 January. That sees the ASX 200 tech stock up more than 106% over the past 12 months.

For some context, the ASX 200 is up 0.4% year to date, and up just under 2% over the past full year.

Megaport, if you’re not familiar, provides Network as a Service (NaaS) solutions. The company’s software network helps businesses quickly connect their network to services through its portal.

Here’s what’s been driving investor interest in the ASX 200 stock.

Why are investors bidding up this ASX 200 stock?

Among the ongoing tailwinds for the Megaport share is the rapid global growth in data centres.

The company recently rolled out a new platform called Megaport Reach, which it says enables customers to “connect to over 1,000 clouds/service providers/data centres in less than 60 seconds”.

And business has been booming.

The ASX 200 stock closed up an eye-popping 27.6% on 30 January following the release of the company’s quarterly update for the three months ending 31 December.

Among the highlights, Megaport reported total quarterly revenue of $48.6 million. That was up an impressive 31% year on year, spurred by ongoing growth in customers and services across all its operational regions.

Megaport reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $15.1 million for the quarter.

And the company’s positive net cash flow of $6.9 million increased by 23% from the prior quarter. Megaport’s cash balance grew by $7.3 million over the three months to $62.5 million, as at 31 December.

And management said these figures would have been higher yet, if not for a significant negative foreign exchange impact amid a stronger Aussie dollar.

Despite the strong 2024 performance from this ASX 200 stock, Goldman Sachs forecasts more gains to come.

The broker has a buy rating on the stock with a $13.50 price target on Megaport shares.

That represents a potential 5.5% further upside from the current $12.80 per share Megaport is trading at currently.

The post Guess which ASX 200 stock is leading the share price gains in 2024? appeared first on The Motley Fool Australia.

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• Goldman Sachs says Telstra and these 6 ASX shares are buys
• How ASX shares vs. property performed in January
• These were the best performers on the ASX 200 in January
• Here are the top 10 ASX 200 shares today
• Why Gold Road, Ioneer, Megaport, and Nickel Industries shares are roaring higher

Motley Fool contributor Bernd Struben 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 Megaport. The Motley Fool Australia has recommended Megaport. 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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Owning Medibank Private Ltd (ASX: MPL) shares could mean getting a large and growing dividend. The ASX healthcare share is a leading private health insurance provider. Its scale gives it operating leverage and the ability to make stronger profits than rivals and to pay pleasing dividends.

Medibank has a few different divisions, though it’s best known for its Medibank and ahm brands.

The company has an impressive dividend record. Since it started paying a dividend in 2015, it has grown its annual payout every year apart from FY20, which was impacted by the COVID-19 pandemic. There may be more good dividends on the horizon.

Strong dividends expected

Using the Commsec projection, Medibank shareholders are forecast to receive an annual dividend per share of 15.8 cents in FY24. This would be a cash yield of 4.1% and a grossed-up dividend yield of 5.9%.

The annual dividend per share could then increase to 16.9 cents per share, which would be a year-over-year rise of 7%. If it pays that amount, the cash yield would be 4.4%, and the grossed-up dividend yield would be 6.3%.

Why is the passive income so good?

There are two things that directly affect the dividend yield of any business. There’s the private/earnings (P/E) ratio – the multiple of earnings it trades at – and the dividend payout ratio.

In FY24, the Commsec numbers suggest the dividend payout ratio could be 80.6%, and the FY25 dividend payout ratio could be 80.9%. These are quite generous payouts but still leave about a fifth of the profit made within the business for re-investment and/or improving the balance sheet.

The Medibank share price is trading at under 20x FY24’s estimated earnings, and it’s trading at 18x FY25’s estimated earnings, according to the forecasts on Commsec.

Can the Medibank dividends keep growing?

The ASX healthcare share can grow its profit in a number of different ways.

It’s looking to reduce its operating expenditure where it can, which can help grow its profit margins. The business can keep growing its number of policyholders, helped by ageing tailwinds and population growth.

Medibank could also decide to keep diversifying its business by expanding into new areas organically or with acquisitions.

While I’m not expecting rocketing growth, I think the company can keep delivering dividend growth, particularly if policyholder numbers keep increasing.   

The post Want a large and growing dividend? Medibank shares might be the answer 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 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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Looking at Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares today, and one might assume that there’s nothing too special going on in the dividend department with this ASX 200 investing house. But it’s worth discussing today that Soul Patts shares are trading with a dividend yield of 2.59%.

Now that’s not terrible. But it doesn’t look particularly compelling either, even if you consider that it always comes fully franked. After all, you can easily get a dividend yield above 5% from many of the ASX’s biggest miners at present. Or 6% if you turn to the ASX banking sector right now.

Yet some investors are currently enjoying more than a 22% yield on their Soul Patts shares as we speak.

How is that possible, when this company is trading on a trailing yield of 2.59%?

Well, it’s because those investors have held their shares for a very long time, and have reaped the rewards of holding one of the most prolific inocme payers on the ASX.

How are some investors banking a 22% yield on their Soul Patts shares?

Let me explain. Soul Patts is the only ASX share on our stock market that has a 23-year streak of annually raising its investor payouts. Yep, this company has increased its annual dividend every single year since 2000.

Back in 2000, Soul Patts paid out a total of 10.4 cents per share in dividend payments. Last year, that annual total had risen to 87 cents – an increase of just over 736% across 23 years.

At the beginning of the year 2000, Soul Patts shares were asking just $3.90 apiece. If an investor picked up some shares back then, they would have received a yield of 2.67% at the time. But if that investor held those shares in their portfolio ever since, then 2023’s dividend payments would have netted them a yield on cost of 22.3%.

Of course, at the time, no one was to know that Soul Patts was about to embark on such a lucrative dividend spree over the coming decades. But for those who saw that the company had a strong management team and a well-thought-out roadmap for the company’s growth, it might not be a surprise today.

Anyone who picked out Soul Patts back in 2000 for $3.90 a share would have also enjoyed a (coincidental) 763% capital gain from the company too – given those shares that were going for $3.90 in 2000 are now fetching $33.66 at the time of writing.

This all just goes to show how lucrative a rising dividend can be over a long period of time.

The post Soul Patts shares: Here’s how some investors are getting a 22% yield appeared first on The Motley Fool Australia.

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• How can I make $1,000 a month from ASX shares?
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• Got $15,000? How I’d invest for a bulletproof ASX passive-income portfolio
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Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended 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 Scott Phillips.

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The Santos Ltd (ASX: STO) share price is sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy company are trading for $7.33 apiece, down 1.1% as we head into the Thursday lunch hour.

This comes on the heels of yesterday’s 5.8% tumble.

ASX 200 investors pressured the Santos share price on Wednesday after news broke that discussion of a potential merger with Woodside Energy Group Ltd (ASX: WDS) did not result in a transaction.

By comparison, the Woodside share price closed up 0.5% yesterday. Woodside shares are down 0.5% today.

With the Santos share price now down 7.2% since last Friday’s close, I believe ASX 200 investors are overreacting. In fact, I believe Santos has the potential to surge in 2024.

Here’s why.

The end of the Woodside merger and the Santos share price

Commenting on the end of the merger talks with Woodside, Santos CEO Kevin Gallagher said (quoted by The Australian), “Santos has a very strong future as an independent entity, our base business is strong, and our strategy has significant upside over and above where the company is currently trading.”

Indeed, the company owns a portfolio of high-quality energy assets across much of the globe.

And a series of recent court wins, which helped boost the Santos share price at the time, have paved the way for the company to continue laying the pipeline and complete the other required works at its $5.7 billion offshore Barossa gas project.

Some analysts are concerned that the legal delays could lead to increased costs and later production than planned. But Santos maintains that its Barossa project will be delivered on time and within budget.

The ASX 200 energy company is targeting first production in 2025, amid expectations of ongoing global demand growth for LNG.

“We are continuing to work to the budget and schedule as per guidance,” a Santos spokeswoman said in January.

Atop from the strong LNG market, with gas bringing in some 63% of the company’s fourth-quarter revenue, the outlook for oil prices in the first half of 2024 is also looking strong. This should offer some solid tailwinds for the Santos share price over the coming months.

The United States Energy Information Administration (EIA) forecasts a drop in the recent record levels of US oil output will continue, with US producers not returning to new peak levels until 2025.

With the slowdown in US production (the US is the world’s top oil producer) coming alongside the extended and increased production cuts from OPEC+, the EIA expects Brent crude to trade for around US$85 per barrel. And the agency noted oil prices could rise higher than its forecast with “ongoing risks of supply disruptions in the Middle East”.

With Brent crude currently trading for US$79 per barrel, an 8% or more lift from today’s prices should help boost the Santos share price.

New merger potentials

Atop its strong potential as an independent company, the Santos share price could see a big boost if the stock attracts new buyout interest, as a number of analysts are speculating.

That might come in the form of a proposal for a full acquisition. Or it could see an offer for part of Santos’ business, with its LNG assets in focus as a potential takeover target that could boost the company’s value.

According to Ben Cleary, investment manager of Tribeca Global Natural Resources (quoted by The Australian):

Regardless of Woodside walking, Santos seems to now be in play, the company trades on a lower price to net present value to most of the global peer group given their strong project pipeline in LNG and I would assume others will emerge for some or all of the company.

“We expect Santos will still try and drum up interest for some of its portfolio,” E&P Capital analyst Adam Martin added.

The post Why the Santos share price could surge in 2024 without Woodside appeared first on The Motley Fool Australia.

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• Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today
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• Why this US forecast just lifted my 2024 outlook for the Woodside share price
• Santos shares incinerate 8% as Woodside walks away
• Why CSR, Janison, Myer, and Santos shares are tumbling today

Motley Fool contributor Bernd Struben 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decent gain. At the time of writing, the benchmark index is up 0.5% to 7,654.7 points.

Four ASX share that have failed to follow the market’s lead are listed below. Here’s why they are falling:

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation share price is down 12% to $2.93. This follows the release of the aviation services company’s half year results. Alliance reported statutory profit before tax of $37.7 million, which was an increase of 296% year on year. Overshadowing this was the company’s growing debt. Its net debt has increased to $244.6 million, which is more than half its market capitalisation. It notes that it “is at an inflection point when viewed using the scope of an auditor,” which has noted an “Emphasis of Matter.”

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is down over 6% to $1.07. This has been driven by the release of the fund manager’s funds under management (FUM) update for January. According to the release, Platinum reported FUM of $15,190 million, which was down from $15,447 million at the end of December. This was partly caused by net outflows of approximately $166 million for the month.

REA Group Ltd (ASX: REA)

The REA share price is down 3.5% to $177.49. This morning, this property listings company released its first half results and revealed revenue growth of 18% and profit growth of 22%. While this was ahead of expectations, its outlook commentary appears to have disappointed. This saw the company increase its cost guidance for FY 2024.

Santos Ltd (ASX: STO)

The Santos share price is down over 1% to $7.32. Investors have been selling this energy producer’s shares over the last couple of sessions after its merger talks with Woodside Energy Group Ltd (ASX: WDS) concluded without a deal being reached.

The post Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today appeared first on The Motley Fool Australia.

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• REA share price tumbles despite 22% profit jump
• 5 things to watch on the ASX 200 on Thursday
• Santos shares incinerate 8% as Woodside walks away
• Why CSR, Janison, Myer, and Santos shares are tumbling today
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended REA Group. The Motley Fool Australia has recommended Alliance Aviation Services and REA 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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The team at Morgans has been busy picking out its best ASX 200 share ideas for February.

The first two ASX 200 shares we looked at can be found here. Read on for two more picks:

Mineral Resources Ltd (ASX: MIN)

The broker remains positive on this beaten down ASX 200 mining and mining services share.

It believes it is well-positioned to handle lower lithium prices thanks to the diversity of its operations. In addition, it highlights its strong organic growth potential. Morgans said:

MIN is a founder-led business and top tier miner and crusher that has grown consistently despite barely issuing a share over the last decade. Also helping our investment view is that MIN’s diversification leaves it far more capable of tolerating volatility in lithium markets than its peers in the sector. We see MIN’s lithium / iron ore market exposures as an ideal combination to benefit from the China gradual recover. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.

Its analysts have an add rating and lofty $72.00 price target on Mineral Resources’ shares.

QBE Insurance Group Ltd (ASX: QBE)

Morgans is a big fan of this insurance giant and sees it as an ASX 200 share to buy.

Its positive view is based on its expectation for premium increases and cost reductions to drive solid earnings growth over the coming years. In addition, it highlights the company’s cheap valuation. It said:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on 8x FY24F PE.

Morgans has an add rating and $17.56 price target on QBE’s shares. It also expects a very generous 6%+ dividend yield in FY 2024.

The post Morgans names more of the best ASX 200 shares to buy in February appeared first on The Motley Fool Australia.

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More reading

• 7 ASX lithium shares going gangbusters today
• These 3 ASX 200 shares just got some big broker upgrades!
• The ASX dividend dream: 18% returns to fuel your income goals
• Why Goldman Sachs thinks QBE shares are a top buy
• Why Credit Corp, Playside, QBE, and Skycity shares are pushing higher today

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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Cettire Ltd (ASX: CTT) shares caught the eye of investors on Wednesday.

The online luxury products retailer’s shares rocketed higher after it delivered a very strong half-year result.

As a reminder, for the six months ended 31 December, the small cap ASX share reported a 90% lift in gross revenue to $460.5 million and a 56% lift in EBITDA to $26.1 million.

This was driven by a combination of higher repeat customers, a 4% lift in average order value, and an 83% increase in active customers to 576,000.

Can this small cap ASX share keep rising?

The team at Bell Potter has been looking over the result and was very impressed. It commented:

Cettire (CTT) reported their 1H24 result and sales revenue of $354m (+89% on pcp) & Adjusted EBITDA of $26m were solid beats to BPe. The 2H24 has commenced strongly with January gross revenue +80% as the company noted a healthy demand environment across its geographies and EBITDA profitability maintained. The cash position of $99m was also a beat to BPe $74m. CTT flagged exploring of capital management initiatives given the strong balance sheet at present.

In light of this, the broker has responded by retaining its buy rating and lifting its price target on the small cap ASX share by 20% to $4.80.

Based on the latest Cettire share price, this implies potential upside of 14.5% for investors over the next 12 months. Bell Potter adds:

We think CTT’s ability to outperform their peer group far outweighs others given the ~0.9% market share and further supported by the current consolidation the luxury ecommerce market. We also view CTT’s current EBITDA margins ahead of other ecommerce players with minimum risk associated with the drop-ship inventory model. We retain our BUY recommendation.

Cettire’s shares are now up 135% over the last 12 months.

The post Bell Potter says this rocketing small cap ASX share can keep climbing appeared first on The Motley Fool Australia.

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More reading

• Why Cettire, Dexus Industria, Pilbara Minerals, and Zip shares are jumping today
• Cettire share price rockets 40% on ‘exceptional result’
• 2 ASX growth stocks that could turn $10,000 into $30,000 by 2030
• $20,000 in savings? Here’s how I’d try to turn that into $1,463 a month of passive income
• Buy these ASX growth shares for market-beating returns

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire. 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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