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.

What happened

Shares of fintech company Block (NYSE: SQ) — formerly known as Square — tanked by 61.9% during the first half of 2022, according to data from S&P Global Market Intelligence. That was a far worse performance than the S&P 500 and Nasdaq Composite indexes, which fell by 21% and 31%, respectively, from their all-time highs. 

So what

There were many reasons for Block’s steep drop. The biggest factor was rising interest rates. In an attempt to get inflation under control, the Federal Reserve in March began lifting its benchmark federal funds rate from the near-zero it had cut it to at the start of the pandemic to an upward limit of 2% as of June. More rate hikes are expected following the next two Fed meetings in July and September. The federal funds rate is still at a historically low level, but the speed and magnitude of the rate changes have dragged down Block and other high-growth but richly valued stocks. There is an inverse relationship between interest rates and the present value of risk assets like stocks. Thus, rising rates generally lead to lower stock prices.

Data by YCharts

Some investors were also skeptical of Block’s bets on the Bitcoin (CRYPTO: BTC) blockchain network — the reason for the corporate rebrand from “Square” to “Block.” It will take years for these efforts to pay off, if they do at all, since there are other competing crypto networks also vying for developer attention. Block also made a big acquisition, picking up “buy now, pay later” outfit Afterpay in an all-stock deal.

And, of course, there are the growing worries that the U.S. may be headed for a recession. The economy has multiple headwinds working against it this year, and some economists think a recession is already underway. If the consumer takes a hit, Block’s growth momentum could be negatively impacted. 

Now what

The good news is that despite all of these issues, Block is still in fast expansion mode as individuals and small businesses rapidly adopt its digital finance platform. Gross profit (revenue minus the cost of revenue) was $1.29 billion in Q1 2022, a 34% year-over-year increase. Profitability, as measured by free cash flow, also rose to $188 million.

After its epic share price decline in the first half of 2022, Block trades for 34 times trailing-12-month free cash flow. That’s still a premium price tag, but if the fintech leader can continue its growth streak over the next few years, it could be a worthwhile value for investors who buy and hold. Just remember to make Block part of a well-diversified portfolio if you do choose to invest in it. 

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

The post Why Block stock cratered by nearly 62% in 2022’s first half appeared first on The Motley Fool Australia.

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• Why are ASX tech shares struggling today?
• Block shares are back on the buy list for this big-name investor

Nicholas Rossolillo has positions in Bitcoin and Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Block, Inc. The Motley Fool Australia has positions in and has recommended Bitcoin and Block, Inc. 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 Collins Foods Ltd (ASX: CKF) share price has been climbing over the past week.

In fact, since the release of the company’s full-year results on 28 June, the restaurant operator’s shares are up by more than 6%.

At the time of writing, Collins Foods share are travelling 0.86% higher for the day to $10.60.

Let’s take a look at what’s driving these gains.

Collins Foods shares set to trade ex-dividend

Despite the volatility impacting ASX shares of late, the Collins Foods share price has continued to rise.

It appears investors have been jumping on board ahead of the ex-dividend date for the company’s shares.

Investors need to buy Collins Foods shares before market close today to be eligible for the final dividend. The ex-dividend date is on Friday 8 July.

Historically, when a company reaches its ex-dividend day, its shares tend to fall after shareholders lock in the latest dividend.

When is payday for Collins Foods shareholders?

For those eligible for the Collins Foods dividend, shareholders will receive a payment of 15 cents apiece on 1 August.

This brings the full-year dividend to 27 cents, and reflects a 17.4% lift from the previous financial year.

The dividend is also fully franked.

Franking credits, or imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company.

In addition, investors can elect for the dividend reinvestment plan (DRP), which will add a portion of shares to their portfolio instead.

There is no DRP discount rate, however price will be determined by the daily volume-weighted average (VWAP) from 13 July to 26 July.

The last election date for shareholders to opt-in to the DRP is 12 July.

Share price snapshot

Since the start of 2022, the Collins Foods share price has travelled more than 20% lower following tough macroenvironmental conditions.

The company’s shares reached a 52-week low of $8.04 last month, before treading higher in the following weeks.

Collins Foods commands a market capitalisation of roughly $1.24 billion and has a dividend yield of 2.36%.

The post Time is almost out to secure the Collins Foods dividend. Here’s what you need to do appeared first on The Motley Fool Australia.

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• Bendigo Bank shares rise after going long on leverage with ANZ lending acquisition
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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 Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods 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 Infomedia Limited (ASX: IFM) share price is plunging on Thursday after the company announced the highest bidder has dropped out of the multi-horse race to acquire it.

United States-based technology investment firm Battery Ventures has withdrawn its $1.75 per share bid.

At the time of writing, the Infomedia share price is $1.60, 5.04% lower than its previous close.

Let’s take a look at the latest news from the automotive industry software-as-a-service (SaaS) provider.

Infomedia share price falls as Battery Ventures walks

The Infomedia share price is tumbling on news that one of the three parties lined up to take over the company has dropped out of the race.

And not just any of the three – Battery Ventures was the highest bidder.

Its $1.75 per share offer was notably higher than those posed by TA Associates and Viburnum (TA Consortium) and Solera Holdings (Solera). Both of these remaining interested parties have offered just $1.70 per share.

In other news, the company’s board has granted Solera and TA Consortium preliminary due diligence material and access to management. It has also committed to continuing discussions with the potential acquirers to help move their proposals towards binding offers.

The Infomedia share price launched 28.5% in mid-May when TA Consortium put forward its interest in snapping up the company.

The stock surged once more later that month when Battery Ventures jumped on the bandwagon.

Solera, meanwhile, didn’t announce its interest until mid-June.

Both TA Consortium and Solera’s offers are payable in cash. They’re also subject to several conditions, including due diligence and shareholder approval.

Share price snapshot

Fortunately, today’s fall hasn’t been enough to send the Infomedia share price into the long-term red.

The stock is currently 4.5% higher than it was at the start of 2022.

It’s also trading for 9.5% more than it was this time last year.

The post Why is the Infomedia share price falling 5% today? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Infomedia. The Motley Fool Australia has recommended Infomedia. 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 Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is pushing higher on Thursday morning.

At the time of writing, the regional bank’s shares are up 1% to $9.38.

This makes the Bendigo and Adelaide Bank share price the strongest performer among the major banks.

Why is the Bendigo and Adelaide Bank share price rising?

Investors have been bidding the Bendigo and Adelaide Bank share price higher in response to the release of an announcement.

According to the release, the company has agreed to acquire the investment lending portfolio of Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Management believes the acquisition will allow Bendigo and Adelaide Bank to further grow its Leveraged Equities margin lending business. It is already one of the leading and longest established margin lenders in Australia.

The ANZ investment lending portfolio has a value of approximately $715 million, with approximately 11,900 customer facilities. As a result, this acquisition is expected to take the combined value of Bendigo and Adelaide Bank’s margin lending portfolio to more than $2 billion at completion.

Bendigo and Adelaide Bank will pay an “immaterial premium over book value” for the investment lending portfolio, which will be funded through the ordinary course of business operations.

Pleasingly, the acquisition of this high return portfolio is aligned with the bank’s objective of growing its return-on-equity and will be earnings accretive upon completion

The deal is expected to complete in the first half of calendar year 2023.

‘A strong future’

Bendigo and Adelaide Bank’s managing director and CEO, Marnie Baker, spoke positively about the acquisition. She said:

In line with our vision to be Australia’s leading bank of choice, the acquisition will strengthen Leveraged Equities’ position as an industry leader in margin lending and enhance the scale of our existing operations.

The portfolio we are acquiring is well established and primarily comprises retail customers which will complement Leveraged Equities’ client base of professionals and clients under advice. We believe there is a strong future for Margin Lending in Australia, and this acquisition will create further opportunities for growth.

The post Bendigo Bank shares rise after going long on leverage with ANZ lending acquisition 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank 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 Chalice Mining Ltd (ASX: CHN) share price is soaring 13.3% higher in early trade today.

Chalice Mining shares closed yesterday at $3.75 and are currently trading for $4.25.

This comes after the ASX resource explorer reported on its latest, promising drill results.

What exploration results were reported

The Chalice Mining share price is on the rise after the company revealed it had intersected a new nickel-copper-platinum group element (PGE) sulphide zone at its Julimar Ni-Cu-PGE Project, located in Western Australia.

The visual results come from initial diamond drilling at the Dampier Target, some 10km north of the proven Gonneville Deposit. Assays for the new holes at Dampier are expected within six weeks.

The explorer reported that across three wide-spaced holes it had intersected a 15m to 80m wide zone of disseminated sulphides (averaging 1-3% sulphide), with locally abundant matrix sulphides (up to 20% to 30% sulphide) within an interlayered sequence of ultramafic to mafic intrusive rocks.

Chalice stated:

This is the first significant indication of orthomagmatic sulphide mineralisation outside of the Gonneville Deposit itself and is considered an exciting result which demonstrates the highly prospective nature of the Julimar Complex for additional Ni-Cu-PGE discoveries.

Exploration activities are continuing at the Hartog-Dampier targets. Thirteen of 70 planned diamond drill holes have been completed so far, with assays pending for five holes.

The Chalice Mining share price could be getting an extra boost as the company noted it’s yet to test several high-priority targets at Hartog-Dampier. It currently has four diamond drill rigs at the site with three additional rigs drilling at the Gonneville PGE-Ni-Cu-Co-Au Deposit.

Chalice highlighted that its drilling program in the Julimar State Forest uses “small footprint diamond drill rigs”. The exploration doesn’t entail any mechanised clearing of local vegetation or excavation.

Chalice Mining share price snapshot

Today’s big lift in the Chalice Mining share price will come as welcome news to shareholders who’ve held on during a difficult year.

Despite the boost, shares in the ASX explorer remain down 43% in 2022. That compares to a year-to-date loss of 14% posted by the All Ordinaries Index (ASX: XAO).

Taking a step back, investors who bought Chalice Mining shares on 31 January 2020 – before the onset of the COVID-19 pandemic – will be sitting on gains of almost 1,500%.

The post Chalice Mining share price leaps 13% on new exploration results appeared first on The Motley Fool Australia.

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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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Consumer discretionary has been a tough space in FY22, but there are several ASX retail shares that have delivered big returns.

These companies have managed to defy waning consumer sentiment triggered by the rising cost of living.

The higher-for-longer inflation, interest rate hikes, and falling asset prices are major risk factors for the sector.

Small-cap ASX retail shares outperforming the big end of town

This explains why some of our biggest ASX retail shares have slumped by 20% or more in the past year. This includes the JB Hi-Fi Limited (ASX: JBH) share price and Wesfarmers Ltd (ASX: WES) share price.

However, there have been a number of retail gems at the smaller end of the market that have delivered double-digit returns in the past financial year.

I am not talking about illiquid micro-caps, where a single trade can drive their share prices into the stratosphere. These are ASX consumer discretionary shares with a market cap of at least $100 million.

The top-performing ASX retail shares in FY22

What’s more, you probably haven’t heard of some of these names. And in another blow to our Aussie ego, a few of these are New Zealand businesses listed on the ASX!

The best performing ASX retail share in FY22 is Mydeal.Com Au Ltd (ASX: MYD). The online retailer surged just over 60% over the financial year.

What really helped was Woolworths Group Ltd (ASX: WOW) buying an 80% interest in the company as opposed to operational growth. But a win’s a win!

The second top performer for the year is NZME Ltd (ASX: NZM). The Kiwi media and entertainment group managed to deliver a 41% increase in share value.

This will be enough to embarrass its Aussie peers like Nine Entertainment Co Holdings Ltd (ASX: NEC) and Seven West Media Ltd (ASX: SWM). Nine fell 29% while Seven is about flat over the period.

More Kiwis beating the Aussies

But NZME isn’t the only New Zealand media share to be shooting the lights out. In third spot is the SKY Network Television Limited (ASX: SKT) share price with its gain of around 32% for the year.

Adding insult to Aussie injury is New Zealand-founded jeweller Michael Hill International Ltd (ASX: MHJ). The ASX retail share jumped around 27% in value thanks to strong sales across all of the company’s markets and its ability to hold margins.

Meanwhile, the Supply Network Limited (ASX: SNL) share price isn’t far behind with a gain of around 24%. This is no doubt helped by the Australian and New Zealand auto parts retailer issuing a pleasing FY22 sales and profit guidance.

The post Top 5 outperforming ASX retail shares in FY22 that you may not have heard of appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau 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 Supply Network Limited. The Motley Fool Australia has positions in and has recommended Supply Network Limited and Wesfarmers 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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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.

Amazon (NASDAQ: AMZN) has gone through a volatile stretch over the last few years. The surge in customers and sales at the pandemic‘s onset has been followed by decelerating growth and rising costs. Amid all of that was a change in CEOs and a stock split.   

But none of the above are reasons to buy. Instead, the green flag I will discuss is the massive customer commitments it has for its lucrative Amazon Web Services (AWS) segment, the primary driver of Amazon’s profitability these days.

$89 billion worth of signed contracts

As of March 31, Amazon’s web services segment has contracts with customers for a total value of $88.9 billion. In other words, customers are committed to spending $89 billion on Amazon Web Services over the next few years. To put that figure into context, in its most recent quarter (ended on March 31), AWS generated revenue of $18.4 billion. That was a 37% increase from the same quarter in the prior year. What’s more, it was an acceleration of the 32% growth it achieved in the same quarter of last year. Note that contractual obligations turn into revenue as customers use the service they agreed to buy.

Significantly, on that $18.4 billion in AWS revenue, Amazon earned an operating income of $6.5 billion. Amazon’s other two segments, North America and international, generated an operating loss of $1.6 billion and $1.3 billion, respectively, in the quarter ended in March. These two segments are suffering the effects of economic reopening as consumers spend more of their money at brick-and-mortar retailers. Besides the losses in this most recent quarter, the two segments are notoriously lower-profit-margin businesses.

AMZN Operating Margin (Annual) data by YCharts

It’s great news for Amazon that its more profitable segment is accelerating revenue growth and has a massive backlog of customer demand to fulfill. While its other segments may continue facing headwinds from the economic reopening, AWS continues to thrive. Indeed, the growth of AWS to a more considerable portion of Amazon’s overall business has boosted its operating profit margin over the last decade. 

A great time to buy Amazon’s stock 

That’s creating an opportunity for long-term investors. The market has punished Amazon’s stock, which is down 41% off its highs in 2021. Investors are concerned about decelerating growth of retail sales domestically and internationally. However, that might arguably be overlooking where the value comes from in Amazon’s stock. AWS is where the bulk of profits will come from, and that segment is accelerating.

AMZN PE Ratio data by YCharts

Amazon is trading at a price-to-earnings ratio of 53, near the lowest that investors have been able to buy Amazon stock in the last five years. The worries over its online sales deceleration have created an excellent opportunity for long-term investors to buy Amazon stock — a green flag, to be sure. 

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

The post 1 green flag for Amazon stock appeared first on The Motley Fool Australia.

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Parkev Tatevosian has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Temple & Webster Group Ltd (ASX: TPW) share price looks like a bargain to me after its large fall over the last few months.

Since the beginning of 2022, shares of the company have dropped around 65%. There has been a lot of volatility across the ASX share market this year, but this decline is one of the larger falls.

With investing, it’s important not to anchor ourselves to previous share prices. Just because the Temple & Webster share price was above $10 at the start of the year doesn’t mean it’s going to rapidly get back there.

The company claims to be Australia’s largest pure-play online retailer of furniture and homewares.

It sells more than 200,000 products from hundreds of suppliers. It runs a drop-ship model where products are sent directly to customers by suppliers. Temple & Webster says this enables faster delivery times and reduces the need to hold inventory, allowing for a larger product range.

Temple & Webster also has a growing private label range of products.

Not only that, but the company recently launched The Build, a website for home improvement products. The move into home improvement is one factor that makes me believe the company’s shares are worth buying at the current Temple & Webster share price of $3.79.

Home improvement market

The company’s expansion into home improvement opens up a big new market for the business.

Management said this adds a further $16.4 billion to its addressable market. However, only 5% of this market has moved online, so online adoption could help drive demand and revenue for this segment.

The kinds of products we’re talking about here include tools and equipment, garden and landscaping, paint and supplies, window furnishings, flooring, and plumbing fixtures.

Online adoption of core category

Its furniture and homewares category is also worth around $16 billion.

Management pointed out that more and more households are using online shopping. We could look to the US to see how the e-commerce adoption curve can develop.

In 2019, 15.2% of the US furniture and homewares market was online. This grew to 25.3% in 2020 in the first year of COVID-19.

However, Australia’s e-commerce journey is significantly behind. In 2019, 5.1% of Australia’s furniture and homewares category was online. This increased to somewhere between 7% and 9% in 2020. Even reaching the US’s 2019 level of 15.2% is quite a way off, giving Temple & Webster a good growth runway in my opinion.

But it’s growing strongly. In the period of 1 January 2022 to 30 April 2022, revenue rose 23% year on year.

Scale to boost operating leverage

Temple & Webster is re-investing its growing revenue and cash flow into areas like marketing, technology, product range, and the overall customer experience.

In time, the company plans to utilise its leadership position to achieve and bank those scale advantages which will help with better unit economics. It could lead to cost advantages in product sourcing, logistics, and marketing. It also won’t need to invest as much, particularly in terms of its fixed costs, which should help profit margins.

I think that when investors see rising profit margins, this will boost investor sentiment and help the Temple & Webster share price.

The post Why I think the Temple & Webster share price is on sale right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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 Bubs Australia Ltd (ASX: BUB) share price is on the slide on Thursday morning.

At the time of writing, the junior infant formula company’s shares are down 2.5% to 59.5 cents.

What’s going on with the Bubs share price?

The Bubs share price is falling today despite the company releasing yet another update on its US operations.

Today’s update highlights that the US Food and Drug Administration (FDA) has announced that it is developing a new framework for continued, expanded access for US parents and caregivers to international infant formula products that it has assessed as being safe and nutritious.

While not unexpected, this is a potential positive for Bubs as the FDA’s temporary enforcement discretion policy to supply infant formula to the US runs until November.

The release notes that the FDA intends to issue further guidance in September. This will relate to how companies that have already received temporary enforcement discretion could meet the FDA requirements to continue supplying infant formula beyond that time.

Bubs has expressed an interest in helping to diversify and strengthen US infant formula supply by continuing to serve the American market permanently.

In other news, the fifth and sixth air freight shipment has been confirmed for this month. This will ship 180,000 tins of infant formula to the US.

Management commentary

Bubs Founder and CEO, Kristy Carr said:

We welcome Commissioner Cliff’s announcement today and look forward to continuing to work with the FDA over the coming months to address any additional steps required to ensure we can supply and market Bubs’ safe and nutritious formulas without interruption beyond November and over the longer term.

Bubs was one of the first international manufacturers to apply to the FDA to import infant formula under the initial enforcement discretion policy. Our long-standing commitment to the U.S. market ensured our ability to provide rapid response at the speed of safety, and satisfy the very stringent quality and safety nutrition requirements of the FDA, having first launched our toddler products in the United States in 2021 with our retail partners.

The post Bubs share price falls despite US FDA update 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. 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 I’ve been looking at a number of shares that Bell Potter has rated as its top picks for FY 2023. You can read about its tech picks here and its energy picks here.

On this occasion, let’s take a look at a couple of ASX healthcare shares that Bell Potter is tipping as buys this financial year.

Bell Potter notes that the biotechnology sector has been hit hard by the market correction. This has led to some of its recommendations being crushed despite “making encouraging progress either in the clinic or in commercialisation.”

In light of this, the broker believes that now is the time for investors to invest and take advantage of this share price weakness.

Now is the time to concentrate on those names with sufficient capital to carry on through this downturn and with assets in areas of high unmet need. In our view both large pharma and private equity investors are likely to take advantage of the current depressed valuations.

With that in mind, here are two ASX healthcare shares it rates as buys:

Avita Medical Inc (ASX: AVH)

The first healthcare share that Bell Potter is bullish on is Avita Medical. It is a regenerative medicine company which has created a technology platform that allows it to address unmet medical needs in burns, chronic wounds, and aesthetics indications.

The broker currently has a speculative buy rating and $3.00 price target on the company’s shares. This compares to the latest Avita share price of $1.66.

It said:

AVH and others in the wound care space endured a very difficult two year period throughout the COVID-19 pandemic. Most of those access restrictions (for AVH clinical support staff) to US hospitals have lifted since the commencement of 2022. Access to surgeons and theatres is crucial for training purposes in the use of the Recell device, particularly in the current environment where there has been a high turnover of clinical positions within the hospital sector. We expect strong sequential quarter growth in the June quarter as more normal market conditions return. Short term catalysts include the upcoming release of headline data from clinical trials in trauma wounds and vitiligo. AVH remains well capitalised with cash of US$95m.

Telix Pharmaceuticals Ltd (ASX: TLX)

Bell Potter is also bullish on this radiopharmaceutical company. This is due largely to its Illuccix product and its significant market opportunity.

The broker currently has a speculative buy rating and $8.10 price target on its shares. This compares to the latest Telix share price of $5.19.

It commented:

Telix Pharmaceutical’s first radiopharmaceutical drug (Illuccix) for the imaging of recurrent prostate cancer was approved in late 2021. Since then the company has made stellar progress towards commercialization in the US and Australia. PSMA imaging is now included in the NCCN guidelines for management of recurrent prostate cancer and reimbursement is also now approved in the US. The addressable market is expected to be worth in excess of US$1bn annually with Illuccix being one of three competitors in the US. The company is well capitalised following a $170m raise earlier this year and revenues from product sales are expected to generate the company’s maiden profit in FY23.

The post Bell Potter names 2 of the best ASX healthcare shares to buy in FY23 appeared first on The Motley Fool Australia.

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More reading

• Why did the Adore Beauty share price sink over 70% in FY22?
• Why experts rate these ASX growth shares as buys
• Analysts name 2 excellent ASX dividend shares for income investors to buy
• Why the end of the RBA’s $350 billion bond buying program is positive for fixed income investors: fund managers
• Players gonna play: 3 ASX shares set for a strong reporting season

Motley Fool contributor James Mickleboro has positions in TELIXPHARM DEF SET. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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