One leading broker thinks that the Qantas Airways Limited (ASX: QAN) share price could rise strongly in FY23.

Despite the worst of the COVID-19 impacts fading into the distance for Qantas, the ASX airline share is still seeing elevated volatility. Over the past two months, the Qantas share price is down around 15%.

Qantas has experienced some difficulties in servicing pre-COVID levels of demand as its planes get back in the sky again.

According to reporting by The Age, Citi analyst Samuel Seow has said Qantas needs to improve its performance amid its ongoing operational problems. However, employing more staff will come at a higher cost.

But, despite these issues, some experts think that Qantas shares are an opportunity.

UBS is optimistic about the Qantas share price

One broker that particularly likes the ASX airline share is UBS.

According to reporting by The Australian, UBS rates Qantas as a buy, with a price target of $6.55. That implies a possible rise of around 40% over the next 12 months.

The broker noted the Qantas share price has dropped in recent weeks. UBS suggested the decline was largely because investors may be worried about what an economic downturn could do to the airline as a result of inflation as well as higher interest rates.

UBS suggested that the airline may well underperform in a recession. But, UBS said:

However if, as we expect, a less severe ‘soft landing’ macro scenario plays out for Australia, then QAN offers strong valuation upside and on the balance of probabilities we see QAN as compelling at its current price.

We think the downside is less severe because we expect Qantas earnings to be more resilient under a downturn scenario today versus previous cycles.

This view is based on the different trading context – pent-up demand, time to adapt, less intense competition – and a different-looking Qantas itself – lower fixed costs, more capex flexibility, higher mix of income from loyalty – such that Qantas’ strategy is more likely to match capacity with demand to sustain profitable fares and loads, rather than grow aggressively and discount fares to fill seats.

Valuation

UBS estimates suggest that Qantas is going to return to profitability in FY23.

If the ASX share is able to generate the expected earnings, then it is valued at 15 times the projected earnings for the 2023 financial year.

The post ‘Downside is less severe’: Why some brokers are still bullish on the Qantas share price appeared first on The Motley Fool Australia.

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More reading

• Qantas share price descends as management recruited for ground-handling work
• Brokers name 3 ASX shares to buy today
• Why Core Lithium, European Lithium, Incannex, and Qantas shares are pushing higher
• ‘Higher costs and lower capacity’: Why this broker tips the Qantas share price to nosedive
• Are Qantas shares worth buying ahead of this month’s earnings result?

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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This month is reporting season, so there will be some price movements, at least in individual ASX shares.

Armytage Private chair Lee IaFraté this month has his eyes on a pair of stocks that fit his “conservative” and “fundamental” investment approach.

“Avoid the noise,” he told Reach Markets.

Share price already bounced, but this is just the start

Four-wheel drive accessories provider ARB Corporation Limited (ASX: ARB) has performed handsomely since the 1980s for long-term investors.

But after dropping 40% this year, IaFraté reckons there is excellent value there — with the challenges it has faced this year not really its own doing.

“It has a cult following worldwide,” he said.

“Oil prices have gone up — that didn’t help the story. Also, supply didn’t help the story.”

IaFraté sees upside for those willing to pick it up at a discount right now.

“This stock has been sold down… [but] it’s one of our COVID-recovery stories, going into 2023,” he said.

“It’s had a nice little bounce so far, but this stock will continue to recover.”

The market dominance is undeniable for IaFraté.

“It’s effectively a monopoly. And we love monopolies.

“So if you think the world isn’t going to end, and people might start travelling and spending again, this is our number one pick.”

ARB is reporting its results on 16 August.

A ‘sleeper’ stock pick

IaFraté also loves wealth management software maker Praemium Ltd (ASX: PPS).

“There have been two attempts of takeover here,” he said.

“Third time lucky — they’ve sold the international business, they’ve returned a five-cent dividend just recently.”

Praemium is due to report its numbers on Monday, but IaFraté pointed out there is another important catalyst at the end of the month.

“The buyback starts at the end of August… They’ll buy 10%, which is about 52-odd million shares,” he said.

“We think that alone should start to see some price appreciation.”

With the share price having dived 57% in 2022, IaFraté reckons even the cynics would have to admit there is value.

“So even the most sceptical, miserable person alive thinks, gee, there might be 10% or 15% in this one,” he said.

“We suspect there will be — they’re now back to solid profits, they’re focused just purely on the Australian operation. They’re run by a very, very excellent quality management team.”

For IaFraté’s team, Praemium is “a sleeper” for August.

“So if you’ve got some spare coin, that’s not a bad one to have.”

The post ‘Cult following’: Expert names 2 ASX shares worth buying in August appeared first on The Motley Fool Australia.

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• 2 ASX shares ready for growth in FY2023: expert
• Food, money and travel: 3 ASX shares experts rate as buys right now

Motley Fool contributor Tony Yoo 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 Praemium Limited. The Motley Fool Australia has recommended ARB Corporation Limited and Praemium 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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Yes, the S&P/ASX 200 Index (ASX: XJO) has certainly bounced 9% over the past seven weeks.

But due to the ugly drops in the first half of this year, there are still plenty of tempting bargains out there if you know where to look.

Here is a pair of such ASX shares to buy right now, as suggested by Medallion Financial Group advisor Stuart Bromley.

‘Significant discount’ for software company

Kiwi software provider Xero Limited (ASX: XRO) watched in horror over the first half of 2022 as its share price halved.

However, like many growth stocks, it has rallied the past few weeks to be more than 22% up over July and August.

But that still means it is down 35.8% for the year so far.

For Bromley, this means there’s still a buying opportunity for Xero.

“The stock is trading at a significant discount to prior highs,” he told The Bull.

“This accounting software provider was sold down in the past six months, along with many other stocks in the technology sector.”

Bromley reminded investors that customers “tend to stick” with Xero once they have switched over, which is understandable for accounting software.

Small businesses don’t have the appetite to constantly spend time and money to convert their books over to a different system. Big companies don’t either, to be frank. 

“Xero has more than 3 million subscribers and continues to build momentum,” said Bromley.

“We like the business, as it’s capital light and scalable.”

The Motley Fool reported over the weekend that Goldman Sachs also believes in the “stickiness” of Xero’s software.

“The broker has a buy rating and $113.00 price target on Xero’s shares,” wrote James Mickleboro.

That makes it a 20% upside from the current level.

Upside for when the economy improves

Unlike Xero, Aeris Resources Ltd (ASX: AIS) shares haven’t even had a second-half revival.

All up it’s now worse than half the valuation at the start of this year.

But Bromley likes the look of Aeris Resources now that investment company Washington H Soul Pattinson and Co Ltd (ASX: SOL) is entangled in its affairs.

“This copper and gold miner recently acquired Round Oak Minerals from Washington H Soul Pattinson. The transaction allays fears about AIS mine life, in our view,” he said.

“Washington H Soul Pattinson becomes the biggest shareholder in Aeris, which is positive.”

Aeris produces copper, which dips in price when the outlook for the economy is negative.

“We expect the Aeris share price to recover when copper prices rise and the economy improves,” said Bromley.

“More upside potential exists if the company delivers positive exploration results.”

Aeris will deliver its financials on 25 August.

The post ‘Capital light and scalable’: Expert picks 2 ASX shares to buy now while CHEAP appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Nickel Industries share price slips on $225 million debt capital raise
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Now’s the time to play defense if you have retirement on the horizon

Motley Fool contributor Tony Yoo has positions in Washington H. Soul Pattinson and Company Limited and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Xero. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Xero. 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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Are you looking for some dividend options for your income portfolio this week? If you are, then take a look at the two ASX dividend shares listed below.

Here’s why they have been tipped to as buys by experts:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that could be in the buy zone is Dexus Industria.

Dexus Industria, which was formerly known as APN Industria, is an industrial and office property company with a focus on properties that provide functional and affordable workspaces for businesses.

Morgans is positive on the company despite rising funding costs. On Monday, the broker retained its add rating on the company’s shares with a trimmed price target of $3.28.

Its analysts also continue to forecast attractive dividend yields in the near term. For example, the broker is expecting dividends per share of 17.3 cents in FY 2022 and 16.1 cents in FY 2023. Based on the current Dexus Industria share price of $2.87, this will mean yields of 6% and 5.6%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be a good option for income investors is banking giant Westpac.

Australia’s oldest bank is currently going through a major cost cutting programme that aims to reduce its cost base materially in the coming years.

And while the team at Goldman Sachs believe the bank’s targets are too ambitious and won’t be fully achieved, they still expect cost reductions that will be big enough to boost its earnings meaningfully.

In addition, the broker believes Westpac is well-placed to benefit from rising rates. Particularly given the relative lack of domestic deposit repricing that has been seen to date following recent rates cash rate rises.

Goldman has a conviction buy rating and $26.12 price target on the company’s shares.

As for dividends, its analysts are forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 cents in FY 2023. Based on the current Westpac share price of $22.07, this will mean yields of 5.6% and 6.1%, respectively, over the next two financial years.

The post Analysts say these ASX dividend shares are top buys appeared first on The Motley Fool Australia.

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More reading

• Own Westpac shares? This broker expects the bank’s dividends to surge 10% by FY23  
• 2 ASX dividend shares that experts rate as buys
• Can Westpac shares deliver a competitive dividend yield and 20% upside in FY23?
• Broker says Westpac share price ‘offers the most upside of the banks’
• How are ASX 200 bank shares responding to the RBA rate increase?

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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose 5 points to 7,020.6 points.

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

ASX 200 expected to fall

The Australian share market is expected to open the day lower on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 13 points or 0.2% lower. On Wall Street the Dow Jones rose 0.1%, but the S&P 500 and NASDAQ both dropped 0.1%. The latter was up as much as 1.5% at one stage.

NAB Q3 update

The National Australia Bank Ltd (ASX: NAB) share price will be on watch today when the banking giant releases its third quarter update. According to a note out of Morgan Stanley, its analysts are expecting the bank to report a quarterly cash profit of $1.8 billion. This will be a 5.9% increase on the prior corresponding period. Elsewhere, Megaport Ltd (ASX: MP1) and REA Group Limited (ASX: REA) are due to release their full year results this morning.

Oil prices rise

It could be a decent day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher on Monday night. According to Bloomberg, the WTI crude oil price is up 1.8% to US$90.63 a barrel and the Brent crude oil price has risen 1.6% to US$96.746 a barrel. Positive economic data out of China and the United States boosted prices.

OZ Minerals ‘in play’

The OZ Minerals Limited (ASX: OZL) share price rocketed 35% higher yesterday after the miner received and quickly rejected a $25.00 per share takeover bid from BHP Group Ltd (ASX: BHP). However, the team at Bell Potter don’t believe this is the end of the story. It said: “[W]e expect a higher cash bid from BHP as the deal makes strategic sense and […] believe the scarcity of comparable assets in comparable jurisdictions makes the chances of a competing counter-offer reasonable.”

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.75% to US$1,804.20 an ounce. The softening of bond yields and the US dollar gave the precious metal a lift.

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

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More reading

• Nickel Industries share price slips on $225 million debt capital raise
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Appen, Imugene, OZ Minerals, and Paradigm 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 positions in and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO and REA Group 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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Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse number of different shares that you wouldn’t ordinarily have access to.

But which ones would be top options for investors today? Listed below are three that could be worth considering:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It tracks the performance of the 50 largest technology companies that have their main area of business in Asia (excluding Japan). This includes the likes of Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent Holdings. With these companies revolutionising the lives of billions of people in the region, they have been tipped to have bright futures.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to consider is the hugely popular BetaShares NASDAQ 100 ETF. It gives investors exposure to many of the most iconic companies in the world. This includes the likes of Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. BetaShares notes that with its strong focus on technology, the ETF provides diversified exposure to a high-growth potential sector that is under-represented on the Australian share market.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A third ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. As its name suggests, this ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports. Among the companies that you’ll be owning a slice of are Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck highlights that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 ETFs for ASX investors to buy right now 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 BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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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On any given trading day, news of at least one ASX small-cap share soaring upwards by more than 20% is likely. In fact, it’s entirely possible to see a small-cap share soar more than 50% in a day.

But are ASX small-cap shares the way to go, or should they be avoided?

Let’s take a look at one expert’s view on the smaller end of the market.

‘You don’t get bargains’: expert

Australia and the wider international markets have been on edge in recent times amid fears of a recession and pending interest rate hikes.

However, in an interview with livewire today, Forager Funds chief investment officer Steve Johnson said, “You don’t get bargains without dysfunctional markets“.

Johnson expressed his view on the market, given US and Australian sentiment in recent times, and noted some concern about small-cap shares. He said:

The smaller you get, the worse the performance has been. On the Russell 2000, an American small companies index, more than 70% of companies have seen their share price go down more than 30% from their peak.

Of those companies with market caps of less than $500 million, that drawdown has been 55%.

These waves of momentum are being driven by a significant percentage of the market that doesn’t care how much profit the business is going to make or how much it’s worth.

Johnson also likened the market to a “casino”. He added:

The rise of retail gambling, the nature of the stock market being more like a casino; I don’t think it’s been more prominent than it has in the past few years.

In today’s news, ASX small-cap share Cardno Limited (ASX: CDD) has soared more than 110% in two days on the back of price-sensitive market news.

Analysts also believe these two small-cap ASX shares, Airtasker Ltd (ASX: ART) and Serko Ltd (ASX: SKO), could have potential.

The post ‘The smaller you get, the worse the performance has been’: Should ASX small-cap shares be avoided right now? appeared first on The Motley Fool Australia.

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• Guess which little-known ASX share has soared 110% in 2 days
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• Why I think these ASX tech shares are buys in August
• Brokers name 3 ASX shares to buy today
• ‘We are benefiting from the inflationary environment’: Airtasker share price rockets 16%

Motley Fool contributor Monica O’Shea 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 Serko Ltd. The Motley Fool Australia has recommended Serko 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 Nickel Industries Ltd (ASX: NIC) share price closed lower on Monday amid a significant debt announcement by the mineral exploration company.

Nickel Industries shares finished the day down 1.82% at $1.08 each after hitting an intraday low of $1.052 a share. They opened this morning at $1.10 each.

Let’s check what announcement the company made today.

What happened?

Nickel Industries announced it had raised US$225 million in debt capital for the Oracle Nickel Project acquisition.

The company said it had executed binding agreements for the issuing of USD $225 million worth of senior secured notes. The debt has an interest rate of 10% and will mature in August 2025.

The notes will be issued on the Frankfurt Open Market Exchange.

Part of the proceeds from the notes, along with the company’s cash reserves and future earnings from its existing operations, will be used to satisfy the company’s remaining payment obligations for the project in Indonesia. The agreement was announced in November 2021.

Nickel Industries entered a memorandum of understanding with Shanghai Decent Investment Group Co Ltd to acquire a 70% stake of the Oracle Nickel Project. It’s estimated the project will have a production capacity of 36,000 tonnes of nickel when it’s completed.

When the production of its Angel Nickel and Oracle Nickle production facilities are consolidated, the company expects a nameplate capacity of more than 100,000 tonnes of the base metal.

The Oracle Nickel Project comprises four rotary kiln electric furnaces.

The first rotary line is due to be commissioned in October this year, five months ahead of the scheduled project delivery date, the company said.

Production facilities are situated in Indonesia Morowali Industrial Park, and Halmahera Island, Indonesia. 

Nickel Industries share price snapshot

The Nickel Industries share price slipped 1.37% in a year but has shed almost 25% year to date.

Its 2022 performance is well below that of the benchmark S&P/ ASX 200 Index (ASX: XJO) which has lost 5.7% so far this year.

This coincides with a steady downturn in nickel prices on commodity markets since March this year.

At the company’s current share price, Nickel Industries has a market capitalisation of around $2.9 billion. 

The post Nickel Industries share price slips on $225 million debt capital raise appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
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• Now’s the time to play defense if you have retirement on the horizon
• 4 key traits Warren Buffett uses to pick the best stocks
• Why is the Paradigm Biopharmaceuticals share price up 12% on Monday?

Motley Fool contributor Matthew Farley 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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Some key S&P/ASX 200 Index (ASX: XJO) shares have been chosen as opportunities by fund managers.

There has been a whole heap of volatility during the last few months as concerns have grown about inflation and rising interest rates.

Different businesses are being impacted in different ways by these impacts.

But, there are a few names that may actually be able to generate bigger profit in this environment.

The two fund managers – Geoff Wilson from Wilson Asset Management and Dr Philipp Hofflin from Lazard Asset Management – were talking to Livewire Markets and suggested that a recession is likely over the next year and a half.

But, Hofflin pointed out a couple of ASX 200 shares that could be worthwhile to own because they may be able to remain stable:

Coles Group Ltd (ASX: COL)

Coles is one of the largest supermarket businesses in Australia with a market capitalisation of $25 billion according to the ASX.

The supermarket business was one of the picks by Hofflin. He actually picked both supermarket ASX 200 shares, Coles and Woolworths Group Ltd (ASX: WOW), but his preference is Coles.

Why Coles? The given reason was the fact that it has no debt and a “strong” balance sheet, according to the comments reported by Livewire.

Wilson said:

Look at the companies with good balance sheets, low levels of debt and the ones with strong business franchises as these have the potential to prosper, even in difficult times.

Woodside Energy Group Ltd (ASX: WDS)

Energy giant Woodside was another pick by Hofflin.

It was suggested that Woodside could be a good pick if there’s a recession like the mid-70s when inflation was persistent.

Woodside is another ASX 200 share that has a minimal amount of debt after merging with the oil and gas division of BHP Group Ltd (ASX: BHP).

It was also noted that Woodside could be one of the ASX 200 shares to benefit from the energy supply issues.

Energy prices have been elevated since the Russian invasion of Ukraine, which could help revenue, net profit after tax (NPAT) and cash flow.

According to the estimate on CMC Markets, Woodside could pay an annual dividend per share of $3.63 in FY22. That translates into a grossed-up dividend yield of 16.3%. That would be among the largest yields paid in 2022 out of all the ASX 200 shares, aside from a few miners.

The post 2 little-to-no-debt ASX 200 shares to buy in a downturn: fundie appeared first on The Motley Fool Australia.

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More reading

• Why is the Woodside share price having such a strong start to the week?
• Is Coles an underrated ASX 200 dividend share with potential?
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Sick of high petrol prices? Then buy this ASX share: analyst

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 positions in and has recommended COLESGROUP DEF SET. 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 Redbubble Ltd (ASX: RBL) share price spent a day in the green today following positive news from a prominent broker.

After zipping to an intraday high of $1.335, shares in the e-commerce company closed 16.67% higher at $1.33.

Broker slaps a buy rating on Redbubble shares

Investors were driving up the Redbubble share price higher following an updated broker note.

As reported in the Australian Financial Review, the team at UBS upgraded Redbubble shares to a “buy” rating and lifted the company’s price target by 10% to $1.60 per share.

UBS analysts touched on the attractive opportunity currently presenting Redbubble shares, saying:

Given the extreme level of investor disinterest in the name, combined with a valuation multiple implying further downgrades and a short interest position of over 4%, we think a FY22 result which meets or potentially beats consensus expectations, combined with an improved July sales update will be a positive catalyst for the share price.

UBS added that the company’s sales and margin trends could be better than what the market expects.

The report stated that “channel checks with US print-on-demand peers suggest digital marketing costs have not materially worsened”.

Furthermore, a challenging microenvironment is putting pressure on smaller peers to focus on preserving cash rather than investing in marketing activities.

Nonetheless, UBS believes that Redbubble shares are grossly undervalued at the current price. From where it trades today, this represents an upside of more than 20%.

The company is scheduled to report its full-year results on Wednesday, 17 August.

Redbubble share price snapshot

Despite today’s gains, the Redbubble share price has slumped 60% over the past 12 months.

The company’s shares hit a low of 77.5 cents in June before moving onto an upwards trajectory.

Redbubble commands a market capitalisation of around $366.9 million.

The post Why has the Redbubble share price burst 17% higher on Monday? appeared first on The Motley Fool Australia.

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More reading

• Is it time to buy these 2 beaten-up ASX shares in August?
• Could ASX online retail shares be getting a boost out of inflation?
• 3 ASX 300 retail shares majorly cashing in on Thursday

Motley Fool contributor Aaron Teboneras 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 REDBUBBLE FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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