The S&P/ASX 200 Index (ASX: XJO) is having a very pleasing start to the week so far during this Monday’s trading session. At the time of writing, the ASX 200 has gained a healthy 0.44% and is back over 6,920 points. But we can’t say quite the same for the Telstra Corporation Ltd (ASX: TLS) share price.

Telstra shares seem to have gotten up on the wrong side of the bed this morning. While the markets were enjoying some time in the sun. Telstra shares opened at $3.88 this morning, below the $3.90 the ASX 200 telco closed at last week.

After a brief stint in positive territory around lunchtime today, the Telstra share price is back in the red so far this afternoon and is now going for $3.89, down 0.13% for the day.

So what might be happening with Telstra shares that have excluded this company from the gains the broader market is enjoying?

Why is the Telstra share price having a stroppy Monday?

Well, it’s hard to say. Telstra hasn’t put out any news or announcements today. Or indeed, over this month so far. But we can see that it’s not just Telstra that the markets are feeling lukewarm about this Monday. Telstra’s fellow telco TPG Telecom Ltd (ASX: TPG) is also having a lacklustre day. Its shares are presently flat at $4.82 each.

Aussie Broadband Ltd (ASX: ABB) is faring worse again. The Aussie Broadband share price is currently down by a nasty 2.39% at $2.45 a share.

That’s despite no news out of any of these companies either.

So we can only conclude that the markets just aren’t in a buying mood when it comes to ASX communications shares. Indeed, the communications sector is one of only four ASX 200 sectors in the red today. So it doesn’t seem to be a Telstra-specific problem that is dampening investor appetites for the telco’s shares this Monday.

At the current Telstra share price, the ASX 200 telco remains down by 7.6% in 2022 so far. Telstra has a trailing dividend yield of 4.23% at this share price.

The post Why is the Telstra share price trailing the ASX 200 on Monday? appeared first on The Motley Fool Australia.

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More reading

• No deal: Why ASX 200 coal share Coronado is sinking today
• Why is the Macquarie share price starting the week lower?
• Do Wesfarmers shares really offer 22% upside AND growing dividends?
• Has this overlooked ASX 200 share really gained more than 1,200% in just 10 years?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and TPG Telecom 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a gain. At the time of writing, the benchmark index is up 0.45% to 6,923.1 points.

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

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is up 12% to 34.2 cents. This morning this rare earths developer announced offtake agreements with automakers Hyundai and Kia. The company will supply the two with up to 1,500 tonnes of neodymium and praseodymium (NdPr) annually from its Nolans Project. The agreement is on a seven-year term, with the potential for a five-year extension.

BHP Group Ltd (ASX: BHP)

The BHP share price is up almost 5% to $40.41. Investors have been buying BHP and other mining shares after commodity prices stormed higher on Friday. This was driven by speculation that China could end its COVID zero policy. Unfortunately, Chinese authorities have since quashed this speculation but that hasn’t stopped BHP’s shares from rising.

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is up 10% to $3.84. This follows an announcement by the gold explorer relating to its Mt Gibson Gold Project (MGGP) in Western Australia. According to the release, the company has increased its mineral resource estimate at MGGP by 32% to 2,755,000 ounces. Management also sees opportunities to increase its mineral resource further.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is up 4% to $18.09. Investors have been buying Newcrest and other gold miners on Monday after a strong night for the precious metal on Friday. This has led to the S&P/ASX All Ordinaries Gold index rising a sizeable 4.7% this afternoon.

The post Why Arafura Rare Earths, BHP, Capricorn Metals, and Newcrest shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 mining shares bolting out the gates on Monday?
• Arafura share price rockets 10% on Hyundai and Kia rare earths deal
• Why is this newly minted ASX 200 share rocketing 10% on Monday?
• Why is the BHP share price charging 4% higher?
• 5 things to watch on the ASX 200 on Monday

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 article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The cryptocurrency market is changing, evolving into an asset class for investors — many of them younger — looking for exposure outside of traditional assets like stocks and bonds.  

Charles Schwab (NYSE: SCHW), a financial services company that provides customers with various investment products, recently conducted a study that shows just how far cryptocurrencies have come in the past decade. The survey asked 1,000 customers with 401(k)s aged 21 to 70 a range of questions related to investing, retirement, and more. Participants were split into four age groups: baby boomers, Gen X, millennials, and Gen Z.  

There were plenty of recurring themes in the study that usually had to do with the embrace of new technology in their investing practices or lack thereof. Millennials and Gen Z consistently showed that they are interested in less traditional assets, and are utilizing smart phones and social media to research and facilitate trades. 

Most interesting was the divide in sentiment on cryptocurrencies between younger generations and the older ones. Only 4% of baby boomers owned cryptocurrencies, compared with 47% of millennials and 43% of Gen Z. 

In addition, participants were asked about what new assets they would like to have access to in their 401(k). At the top of the list for millennials and Gen Z were cryptocurrencies. Roughly 45% of those cohorts wanted to have cryptocurrency options, while only 31% of Gen X and just 11% of baby boomers wanted similar access. 

This research shows similar trends to what a Bank of America study found in mid-October: Cryptocurrencies are becoming more sought after by younger investors. As this trend continues to evolve, it should further legitimize the asset class — and that makes it a great time for investors to get in now while it’s still early. 

Narrowing your options

But there are thousands of cryptocurrencies in circulation today. Which ones should investors prioritize?

To get a better idea, we should look at what cryptocurrencies financial service companies are interested in. Turns out there is one that clearly stands out from the rest: Bitcoin (CRYPTO: BTC). 

As the world’s first and most valuable cryptocurrency, Bitcoin is in a class of its own since being created in 2009. Over the last dozen years or so, Bitcoin has transformed from a highly speculative asset deemed to only be used by criminals to one that is owned by high-profile investors, and even Fortune 500 companies like Tesla.

It’s this visibility that has helped it become one of the most sought-after cryptocurrencies today, and investment firms are coming to this realization. Charles Schwab competitor Fidelity became the first financial services company to offer its 401(k) customers exposure to Bitcoin in April. Since then, similar moves have been made by other companies to meet client demands. In August 2022 the world’s largest asset management firm, BlackRock, partnered with the popular cryptocurrency exchange Coinbase to offer its institutional customers access to Bitcoin trading.

There are other examples, but simply put, Bitcoin is leaps and bounds ahead of any other cryptocurrency when it comes to becoming a recognized asset. As the second-most-valuable cryptocurrency, Ethereum might be the next best option to Bitcoin, but the distance separating the two is wide. For this reason, Bitcoin seems to be the most likely candidate out of all cryptocurrencies to go mainstream first.

We should expect demand for Bitcoin to filter into the world of finance, business, and even our every day lives as younger investors continue to seek exposure. This process won’t happen overnight, or even in the coming months, but will likely take years. This is why now is a great opportunity to buy Bitcoin in preparation for a future where the original cryptocurrency cements itself as a necessary addition to every portfolio. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post This one trend could send Bitcoin even higher appeared first on The Motley Fool Australia.

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More reading

• Ethereum and Bitcoin price crash spells the end for these Aussie crypto ETFs
• Up 18% in a month, could it still be worth buying Ethereum at its current price?
• The Bitcoin price leapt 10% in October. Here’s why
• Why one of the smartest investors bought Bitcoin and thinks you should too
• The Bitcoin price may be decoupling from US stocks. Is this why?

RJ Fulton has positions in Bitcoin. Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Coinbase Global, Inc., Ethereum, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Charles Schwab. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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With so many shares to choose from on the ASX, it can be hard 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 leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

ARB Corporation Limited (ASX: ARB)

According to a note out of Citi, its analysts have retained their buy rating and $39.25 price target on this 4×4 products company’s shares. Citi notes that US rival Fox Factory has released its quarterly update and revealed solid sales trends. The broker believes this bodes well for ARB’s performance in the second quarter. The ARB share price is trading at $27.84 this afternoon.

CSL Limited (ASX: CSL)

A note out of Morgans reveals that its analysts have retained their add rating and $312.20 price target on this biotherapeutics company’s shares. This follows the release of the company’s research and development update. Morgans highlights that management conservatively estimates that at least 10 compounds (~20% of the total pipeline) have the potential to be standard of care treatments. The CSL share price is fetching $276.49 on Monday.

Rio Tinto Limited (ASX: RIO)

Analysts at Goldman Sachs have retained their buy rating but trimmed their price target on this mining giant’s shares to $112.60. While the broker has trimmed its copper price forecasts, it isn’t enough to change its positive view. Particularly given that its shares are trading at 0.8x net asset value with an attractive dividend yield. The broker also highlights that Rio Tinto is aiming to acquire the remainder of Turquoise Hill, which would almost double its ownership of the massive Oyu Tolgoi project. Goldman believes the project will be long life, low cost, and offers significant expansion potential. The Rio Tinto share price is trading at $95.57 this afternoon.

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

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More reading

• Own CSL shares? Here’s what brokers are saying about its R&D pipeline
• Why are ASX 200 mining shares bolting out the gates on Monday?
• Why is the Rio Tinto share price having such a stellar start to the week?
• Why I’m seriously considering investing $10,000 in these ASX 200 shares
• Why did the Rio Tinto share price underperform by over 10% in October?

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 CSL Ltd. The Motley Fool Australia has recommended ARB Corporation 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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One of the big pieces of ASX news last week was the fate of the Bravura Solutions Ltd (ASX: BVS) share price. The All Ordinaries Index (ASX: XAO) had a decent, if wild, time last week. But All Ords share Bravura had a real clanger.

On Thursday, this All Ords financial technology company lost a staggering 52.3% of its value in a single trading session.

As we covered at the time, the catalyst for this precipitous drop in value was the disappointing update Bravura released after market close on Wednesday.

This told investors that, after a review, the company needed to be “reconfigured”:

The review has indicated that whilst Bravura has solid foundations, the business will be required to be reconfigured to scale our products across customers.

This will require enhancing the existing technology stack to unlock the existing microservices strategy, drive higher resale multiples on technology development and reduce single customer efforts.

Bravura also sharply downgraded its FY2023 guidance and flagged that it was likely to book a loss on the bottom line.

Investors were not impressed, needless to say.

Bravura director buys the dip

But one insider appears to welcome this massive share price collapse for Bravura. That would be Neil Broekhuizen.

Broekhuizen is an indeprendent non-executive chair and director of Bravura. According to an ASX notice, Broekhuizen owned 215,000 shares of the company before 4 November.

But on that date, Broekhuizen went shopping. He acquired a whopping 636,000 shares on 4 November. This was at an average price of 62.53 cents per share. The buy-the-dip move almost quadrupled Broekhuizen’s share count to 851,000.

Broekhuizen didn’t get in at the bottom by any means. Bravura bottomed out at 54 cents a share last Thursday. But even so, Broekhuizen has already been handsomely rewarded for his pounce. Today, the Bravura share price is trading at 71 cents. That’s up a staggering 19% for the day.

This means that Broekhuizen has already booked an approximate profit of $60,000 on his purchase of the All Ords share last week.

So it seems that Broekhuizen may have pulled off a classic ‘be greedy when others are fearful’ play right out of the Warren Buffett handbook. No doubt Bravura investors have taken this as a positive sign.

The post This ASX All Ords share dumped 50% last week, now a director is buying up big appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, Bravura, Magellan, and Pendal shares are dropping
• Why Bravura, Domino’s, Lendlease, and Woolworths shares are sinking
• Why is the Bravura share price crashing 59% today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bravura Solutions Ltd. The Motley Fool Australia has positions in and has recommended Bravura Solutions Ltd. 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 Coronado Global Resources Inc (ASX: CRN) share price is down in the dumps on Monday after the company revealed takeover talks between it and a global coal giant have gone up in smoke.

It was previously in discussions with Peabody Energy Corporation (NYSE: BTU) regarding a potential combination of the companies. However, such talks have come to an end.

The market isn’t reacting well to the news. It’s bidding the Coronado share price 5.95% lower to trade at $2.135 right now.

Let’s take a closer look at the latest news from the S&P/ASX 200 Index (ASX: XJO) coal miner.

ASX 200 coal share tumbles as takeover talks abandoned

The Coronado share price is tumbling on news it won’t be merging with $6 billion New York-listed coal pure-play Peabody.

The pair confirmed they were discussing joining forces after rumours hit headlines last month.

As The Motley Fool Australia reported at the time, their combination would have created a $9 billion powerhouse, with both companies operating coal mines in Australia and the United States.

Though, the ASX 200 coal giant said today’s announcement wouldn’t impact its plans for the fourth quarter.

The Coronado share price was unmoved when the company downgraded its full-year guidance on the back of wet weather events last week.

It now expects to post between 16.9 million tonnes and 17.1 million tonnes of saleable production in 2022. That’s down from prior guidance of between 18 million tones and 19 million tonnes.

It also incorporates fourth-quarter production estimates of between 5.3 million tonnes and 5.5 million tonnes.

It also expects its average mining costs per sold tonne to come in at between US$81 and US$83 in 2022 – up from prior guidance of US$79 to US$81.  

The company’s focus is on upping its production this quarter. Today’s release stated:

Coronado continues to pursue and implement its existing capital management plans and remains focussed on its existing capital investments and long-term development strategy.

Coronado Global Resources share price snapshot

Today’s fall hasn’t been enough to plunge the Coronado share price into the long-term red.

The stock has gained 65% since the start of 2022. It’s also 61% higher than it was this time last year.

Meanwhile, the ASX 200 has dumped 9% year to date and 7% over the last 12 months.

The post No deal: Why ASX 200 coal share Coronado is sinking today appeared first on The Motley Fool Australia.

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More reading

• Why is the Macquarie share price starting the week lower?
• Do Wesfarmers shares really offer 22% upside AND growing dividends?
• Has this overlooked ASX 200 share really gained more than 1,200% in just 10 years?
• 5 things to watch on the ASX 200 on Monday
• Hotels, hurt feelings, and HR hassles, but Fortescue’s biggest shareholder still got richer this week

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

As stock prices continue to sink, many investors are concerned about what that means for their portfolios.

The S&P 500 and the Nasdaq are officially in bear market territory after falling more than 20% from their peaks earlier this year, and nobody knows how long it will take for the market to recover.

Is it still worth it, then, to continue investing right now? And is it possible to make money even when we’re in a bear market? It depends on your strategy.

How not to invest during a bear market

During periods of volatility, it can be tempting to try to time the market — or buy only when prices are at their lowest and sell when they reach their peaks.  

In theory, this strategy makes sense. By investing when the market is at rock bottom, you can take advantage of those lower prices. Then when stock prices rebound, you can sell your investments for a hefty profit.

However, timing the market successfully is incredibly difficult, and it relies more on luck than skill in most cases. The stock market is unpredictable, and even the experts don’t know exactly when prices will bottom out or how high they will get. If you buy or sell at the wrong moment, it could be costly.

Also, short-term investing outlooks can be riskier. Stocks that have the potential for short-term gains aren’t always the healthiest investments overall, and there’s a chance they may not recover from a market downturn. If you put a lot of money into short-term investments in the hopes of making a quick buck, you could lose more than you gain if those stocks fail.

A safer way to make money during periods of volatility

The good news is that it is possible to make money during a bear market, and it’s easier than you might think. The key is to invest in strong companies and hold those stocks for the long term –regardless of what the market is doing.

Strong stocks from healthy companies are far more likely to recover from periods of volatility. That means no matter how far stock prices fall, you can rest easier knowing your investments have a good chance of bouncing back when the market inevitably recovers.

By holding your stocks for the long term, it also won’t matter how many ups and downs the market experiences on its road to recovery. You don’t need to predict how stock prices will fluctuate like you would if you were timing the market, because all that matters is that your investments see positive returns over time.

Historically, the market has seen positive long-term returns. In fact, in the last two decades alone, the S&P 500 is up more than 150%. That’s despite several major downturns, including the dot-com meltdown, the Great Recession, the COVID-19 crash in 2020, and the current slump.    

^SPX data by YCharts

While nobody knows exactly how the market will perform in the coming weeks or months, we do know that over the long run, it will experience positive average returns.

There are never any guarantees when it comes to the stock market. But by investing in quality stocks and holding your investments for the long term, it’s far more likely you’ll generate wealth despite all of the ups and downs along the way. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Can you make money during a bear market? It depends appeared first on The Motley Fool Australia.

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More reading

• This ASX All Ords share dumped 50% last week, now a director is buying up big
• No deal: Why ASX 200 coal share Coronado is sinking today
• Broker tips A2 Milk share price to jump 24%
• This ASX fintech just got a banking license, and its share price surged 54%
• Own CSL shares? Here’s what brokers are saying about its R&D pipeline

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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The A2 Milk Company Ltd (ASX: A2M) share price has started the week positively.

In afternoon trade, the infant formula company’s shares are up 1.5% to $5.50.

This means the A2 Milk share price is now up 5% since this time last week.

Why is the A2 Milk share price rising?

Investors have been buying the company’s shares since last week’s announcement of US FDA approval to import its infant formula into the enormous market.

According to the announcement, the FDA has approved the import, sale, and distribution of a2 Platinum infant formula products (Stages 1 and 2) from New Zealand through to 3 January 2023. This can be extended through to October 2025 at the FDA’s discretion.

A2 Milk was granted approval after changing its product design to meet the US FDA’s requirements. This will see the products manufactured with different scoops, mixing instructions, and labelling.

Broker reaction

The team at Bell Potter reacted positively to the news. In response, the broker retained its buy rating and lifted its price target slightly to $6.80. This implies potential upside of almost 24% for investors over the next 12 months.

Bell Potter was pleased with the news. Though, it acknowledges that that the gross margin on these products is expected to be lower. As a result, it has only modestly increased its earnings estimates for the coming years.

A2M expects US gross margins to be lower than average, distribution costs to be higher (initially air freighted), some rework costs, and incremental marketing and trade investment to enter the category. The prevalence of slotting fees, tariffs (once a certain import quota has been met) and higher marketing (as a proportion of sales) in our view are likely to result in more modest margins than those generated in Australian IMF channels.

We have adjusted our forecasts to incorporate modest sales volumes in the US IMF category through to FY25e (assuming sustained market access) and also updated for 1H23 NZD movements. The net effect is NPAT upgrades of +2% in FY23e, +1% in FY24e and +3% in FY25e.

Nevertheless, the broker believes the US business could eventually become a meaningful contributor to its earnings. It concludes:

We view the initial entry into the US IMF category as incrementally positive, though note the scale of A2M’s existing US fresh distribution footprint implies this could be a more meaningful contributor should sales velocities approach levels seen in other markets.

The post Broker tips A2 Milk share price to jump 24% appeared first on The Motley Fool Australia.

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More reading

• Why did the A2 Milk share price go backwards in October?
• Brokers name 3 ASX shares to buy today
• Why A2 Milk, Bravura, Magellan, and Pendal shares are dropping
• Here are the top 10 ASX 200 shares today
• Why A2 Milk, New Hope, Perpetual, and Talga shares are charging higher

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 A2 Milk. 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 Novatti Group Ltd (ASX: NOV) share price is lighting up today after the ASX fintech share revealed it’s been granted a restricted banking license.

The Novatti share price emerged from a trading halt to rocket 54% higher this morning. At the time of writing, Novatti shares are trading at 28 cents apiece, up 49%, giving the company a market capitalisation of $94.2 million.

Novatti granted its banking wish

The ASX fintech share has been trying to get its hands on a banking license for some time now. It first submitted an application to the Australian Prudential Regulation Authority (APRA) in November 2019.

This morning, Novatti revealed that this license finally has been granted after years of waiting.

Specifically, Novatti’s dedicated banking subsidiary, International Bank of Australia, has been granted a restricted authorised deposit-taking institution (RADI) license. This license allows holders to conduct limited business banking in Australia before meeting the requirements of the full prudential framework. 

Part of this restriction phase comes with the expectation that a RADI will progress to an authorised deposit-taking institution (ADI) license. As a result, the restricted phase is for a maximum of two years. After that, the RADI will either progress to an ADI license or the holder will exit banking.

Other ASX shares currently holding an ADI license include Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), AMP Ltd (ASX: AMP), and Tyro Payments Ltd (ASX: TYR).

Novatti holds a 91% interest in International Bank of Australia and will tip in a further $5 million as part of a series A funding round to launch the banking business.

What does Novatti have planned for banking?

Novatti’s managing director, Peter Cook, sees banking services as significant across card issuing, merchant acquiring, billing, and cross-border payments.

It underpins the infrastructure and capability of Novatti’s core payments business. So, in turn, it brings the opportunity to increase margins.

What’s more, Cook noted that International Bank of Australia has the advantage of leveraging Novatti’s existing payments ecosystem and global footprint to help win customers quickly.

International Bank of Australia has its sights set on fintech customers, believing this market segment has been underserved by traditional banks.

Guy Carvalho, CEO of International Bank of Australia, commented:

For a long time, we have known that traditional banks have not been able to keep up with the requirements of the disruptive business models of fintechs, particularly those offering alternative ways to make or accept payments, domestically or internationally. IBOA will overcome this challenge, leveraging technology to enable the seamless end-to-end movement of money.

International Bank of Australia also sees significant potential in the underserved migrant sector. Commenting on the opportunity, Carvalho said:

The bank will have the advantage of being able to leverage Novatti’s existing payments ecosystem and global operating base to reach potential customers overseas and enable them to set-up bank accounts and transact before they even set foot in Australia.

In its investor presentation, the company noted it would be the first bank in Australia to offer a service of this kind.

As an example, with a borderless bank account, it says customers would be able to pay for their university fees and apartment bond instantly before arriving in Australia, avoiding costly foreign exchange and international transaction fees.

Novatti share price snapshot

While ultra-competitive, payments and banking are big business, so it’s no surprise to see the Novatti share price race higher today.

Today’s surge has almost erased all of Novatti’s share price losses this year. At 28 cents, Novatti shares are now sitting just 5% below where they ended 2021. But they’re still far from the lofty heights achieved in mid-2021 when shares catapulted to around 80 cents.

In FY22, Novatti doubled its sales revenue to $32.5 million but extended its net loss to $16.6 million.

The post This ASX fintech just got a banking license, and its share price surged 54% appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has positions in Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Macquarie Group Limited and Tyro Payments. 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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CSL Limited (ASX: CSL) shares are pushing higher on Monday.

At the time of writing, the biotherapeutics giant’s shares are up 0.5% to $276.85.

Why are CSL shares rising?

CSL shares are rising on Monday after brokers responded positively to the company’s research and development (R&D) update.

One of those brokers was Morgans, which has responded by retaining its add rating and $312.20 price target on the company’s shares.

Morgans was pleased with the update and notes that a decent proportion of the pipeline has the potential to become standard of care treatments. It commented:

Internal efforts and the Vifor acquisition have seen the R&D pipeline grow c70% with the majority late-stage programs. Management is optimistic of the future “conservatively” estimating at least 10 compounds (c20% of the total pipeline) having the potential to be standard of care for the targeted patient group.

Key catalysts include: potential approval and launch of the first-ever hemophilia B gene therapy EtranaDez; Phase 3 data for anti-FXIIa antibody garadacimab in HAE; and Phase 2 recruitment completion of CSL112 for reducing secondary heart attacks.

What else are brokers saying?

The team at Citi was equally positive and has retained its buy rating and $340.00 price target. Like Morgans, the broker has highlighted the CSL112 therapy as a key highlight. It stated:

CSL held its annual event updating the market on its R&D programs. The R&D budget is significant at US$1.16bn in FY22 or ~11% of revenue. CSL will continue to spend ~10-11% of revenue on R&D annually. The pipeline now includes assets from recently acquired Vifor with two assets in Phase 3. Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.

Finally, Goldman Sachs responded by maintaining its neutral rating and $291.00 price target. Its analysts note that the garadacimab (CSL312) product has the potential to be a “pipeline in a product” thanks to multiple end use possibilities. The broker explained:

CSL312 is a humanised anti-factor XIIa monoclonal antibody in development for multiple indications including as a subcutaneous therapy for HAE, with the potential for administration every 4 weeks (vs. every 2-3 days for Haegarda). Given its early position in the coagulation cascade, there is also potential application in various other disorders (including fibrosis, cardiovascular and inflammatory indications).

The post Own CSL shares? Here’s what brokers are saying about its R&D pipeline appeared first on The Motley Fool Australia.

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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 CSL Ltd. 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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