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

Electric cars giant Tesla (NASDAQ: TSLA) is set to report earnings after close of trading tomorrow, Wednesday, April 20.

Even before the news is out, however, Tesla investors are taking a victory lap today, and Tesla stock is up 2.4% as of 12:05 p.m. ET as investors begin to place bets on what the news will hold. 

So what

Wall Street is of two minds about what Tesla will report tomorrow. On the one hand, Tesla perma-bear Gordon Johnson at GLJ Research is warning that Tesla’s operating cash flow is going to come in only half as strong as the $2.3 billion that other analysts have forecast, sending Tesla’s stock price plummeting tomorrow afternoon. On the other hand, Credit Suisse is raising its Tesla price target to $1,125 on the theory that earnings calculated according to generally accepted accounting principles (GAAP), at least, will be better than others expect.

(Credit Suisse sees earnings coming in at $2.56 per share, versus the $2.26-per-share consensus, reports TheFly.com.)

Now what

Whether Tesla beats or misses the precise numbers that analysts are forecasting for tomorrow, however, here’s what you should actually be focusing on:

Chinese news agency Xinhua reported this morning that at long last, Tesla has resumed car production at its Shanghai factory. The reopening is going slower than predicted, however, and Tesla apparently won’t be up to running even one full shift (out of four total shifts in a week) until the end of this week.

Still, the restart is happening, and that means that Tesla is getting back on track toward its goal of producing 1 million electric cars globally this year. With Shanghai alone able to cover nearly half that number, restarting production there is absolutely crucial to Tesla’s success in hitting its goal this year. Expect Tesla to update investors on the status of its restart tomorrow and to confirm or deny that it can still reach its target after losing three full weeks (and counting) of production capacity in China.  

In the long term, those three weeks will probably dwindle in significance. In the short term, however, whether Tesla is forced to move the goalposts for 2022 could have a marked affect on the stock price this week. 

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

The post Why Tesla stock popped before earnings appeared first on The Motley Fool Australia.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. 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 Bruce Jackson.

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

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The Rio Tinto Limited (ASX: RIO) share price is on the slide on Wednesday.

At the time of writing, the mining giant’s shares are down 2.5% to $118.62 following the release of its first quarter production update.

First quarter production highlights

For the three months ended 31 March, Rio Tinto’s production was largely down across the board both in comparison to the prior corresponding period and the previous quarter. This explains much of the weakness in the Rio Tinto share price today.

The company’s Pilbara operations had a challenging first quarter. Rio Tinto produced 71.7 million tonnes of iron ore, which was 6% lower than the first quarter of FY 2021. Pilbara shipments were 71.5 million tonnes, 8% lower year on year.

Positively, the company expects increased production volumes and improved product mix in the second half with the commissioning and ramp up of Gudai-Darri, commissioning of the Robe Valley wet plant and improved mine pit health.

It was a similar story for its aluminium production, which at 0.7 million tonnes was 8% lower than the first quarter of FY 2021. This was due to reduced capacity at its Kitimat smelter following a strike.

Finally, mined copper production came in at 125,000 tonnes, which was 4% higher than the first quarter of FY 2021. This was driven by higher recoveries and grades at Kennecott, which was partly offset by lower grades at Oyu Tolgoi and lower throughput at Escondida.

Management commentary

Rio Tinto’s Chief Executive, Jakob Stausholm, was a touch disappointed with the company’s performance during the quarter but remains positive on the future. He said:

“Production in the first quarter was challenging as expected, re-emphasising a need to lift our operational performance. We launched seven more deployments of the Rio Tinto Safe Production System, building on the achievements from the previous rollouts. As we ramp up Gudai-Darri, our iron ore business will have greater production capacity and be better placed to produce additional tonnes of Pilbara Blend in the second half.”

Outlook

Despite this weak first quarter, management has reiterated its production guidance for FY 2022.

This includes iron ore shipments of 320Mt to 335Mt, aluminium production of 3.1Mt to 3.2Mt, and mined copper production of 500kt to 575kt.

This compares to FY 2021’s production of 322Mt, 3.2Mt, and 494kt, respectively.

Also remaining unchanged is the mining giant’s cost guidance. It expects iron ore unit costs of $19.50 to $21.00 per tonne and copper C1 unit costs of 130 to 150 US cents per pound.

Though, judging by the Rio Tinto share price performance today, some investors may have doubts over this guidance.

The post Rio Tinto share price falls on weak Q1 update appeared first on The Motley Fool Australia.

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• How does the Fortescue dividend compare to its sector?
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• If you’d bought $10,000 of Rio Tinto shares 5 years ago, here’s how much you’d have now

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 Bruce Jackson.

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Owners of BHP Group Ltd (ASX: BHP) shares may want to know that the company is due to release its operational update this week. However, one broker thinks the update could disappoint.

On 21 April, the company is expected to tell investors how it performed in the three months to 31 March 2022. Shareholders will get an understanding of the nine months ending 31 March 2022.

Could the quarterly update disappoint?

According to reporting by the Australian Financial Review (AFR), the broker RBC Capital Markets has suggested that BHP’s third quarter won’t be as good as investors are expecting.

There are two reasons for the negativity. One reason is COVID-19, and the other is wet weather.

It was suggested that the spread of COVID-19 in Western Australia, as well as port data, indicates that it’s going to be a “weak” quarter for BHP’s iron operations. Due to those factors, the broker decided to decrease its forecast for FY22 iron ore by 1.1%. The third-quarter estimate is now 67.5 million tonnes.

The AFR reports that RBC Capital suggested that copper production at Escondida and Spence struggled in February. It’s possible that the Escondida guidance for FY22 could be dropped by between 20,000 tonnes to 50,000 tonnes, according to the broker.

Coal production could also be affected by wet weather.

Despite those potential issues, RBC reportedly increased its BHP share price target to $50 from $49. That implies a decline of 6% from where the BHP share price currently sits.

Commentary on BHP

The AFR reported on comments made by RBC analyst Tyler Broda, who said:

We see BHP as a strong and well run mining company with a solid balance sheet and upside risk to near-term consensus cash returns, albeit moderated by rising costs.

We continue to see better upside and strategic positioning elsewhere amongst global peers and maintain a sector perform recommendation.

Other ratings on the BHP share price

Macquarie rates BHP as ‘outperform’, with a price target of $61. That implies a potential upside of around 15% for the resource business.

The broker UBS is ‘neutral’ on the company, however the price target is just $43. That suggests a possible downside of almost 20%.

Both of these ratings came after the merger investor presentation between Woodside Petroleum Limited (ASX: WPL) and BHP’s petroleum division.

The independent expert concluded that the merger is in the best interests of Woodside shareholders. The expert said the merger is broadly supported by various financial and other relative contribution measures.

The share consideration for the deal is 914,768,948 new Woodside shares issued to BHP, with each BHP shareholder receiving approximately 0.1807 new Woodside shares per BHP share. The pro forma equity ownership will be approximately 52% for Woodside shareholders and 48% for BHP shareholders.

There will also be a cash adjustment. Woodside is entitled to around $1.6 billion for net cash flow from the BHP petroleum business from 1 July 2021. But, BHP is entitled to $830 million for dividends paid by Woodside since 1 July 2021.

The post Own BHP shares? Here’s why this week’s operations update could disappoint appeared first on The Motley Fool Australia.

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• These 2 blue-chip ASX shares are opportunities: expert
• What’s boosting the BHP share price today?
• 2 ASX 200 dividend giants named as buys by brokers
• The BHP share price has had a stellar start to the year. Is it just the beginning?

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 Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) dividend has been a talking point over the years, rewarding shareholders with big payouts.

This comes as the mining giant has enjoyed bumper profits, particularly from the surging iron ore spot price.

Nonetheless, we take a look to see how the Fortescue dividend stacks up against its peers.

How does the Fortescue dividend compare to its sector?

As a broad comparison, the Fortescue dividend is on par with BHP Group Ltd (ASX: BHP), but less favourable than Rio Tinto Limited (ASX: RIO).

As an example, Goldman Sachs is predicting Fortescue to pay fully-franked dividends per share of US$1.16 in FY22 and US 74 cents in FY23.

Based on the current Fortescue share price of $21.73, this implies a dividend yield of 7% and 5%, respectively.

Next up, BHP is forecast to pay dividends of US$2.56 in FY22 and US$2.33 in FY23.

This reflects a dividend yield of 7.5% and 6.9% respectively.

While both miners are predicted to pay similar yields, it is Rio Tinto that offers the most bang for buck.

As such, Rio Tinto is assumed to pay big fully-franked dividends, outmatching the major miners.

Goldman Sachs has projected Rio Tinto to pay dividends of US$9.30 in FY22 and US$8.90 in FY23.

Again, based on the closing Rio Tinto share price, this equates to dividends yields of 11% and 10% respectively.

Are Fortescue shares a buy?

A recent broker note from RBC Capital Markets raised its rating on Fortescue shares by 6.7% to $16.00.

On the other hand, Citi had a different tone, slashing its outlook by 5.9% also to $16.00.

Based on both brokers, this implies a potential downside of around 26%.

Most notably, Goldman Sachs retained its sell rating on Fortescue shares last week. The broker indicated that the company’s share price is trading at a significant premium compared to its peers.

However, one near term tailwind is an improvement in Fortescue’s low-grade price realisations for iron ore.

In summary, Goldman Sachs put a 12-month price target on Fortescue shares at $15.20. This implies a downside of roughly 30% on the miner’s most recent share price.

Fortescue commands a market capitalisation of roughly $66.91 billion, making it the eighth largest company on the ASX.

The post How does the Fortescue dividend compare to its sector? appeared first on The Motley Fool Australia.

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• 2 ASX dividend shares expected to pay HUGE yields in 2022

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 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 Bruce Jackson.

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Investing in a monopoly is, perhaps, one of the oldest plays in the book, and this S&P/ASX 200 Index (ASX: XJO) share could be just that.

Monopolies, by definition, dominate their sectors, facing low or no competition to provide a product needed – rather than wanted – by their customers.

With that in mind, could ASX 200 share, Transurban Group (ASX: TCL) be one of the ASX’s major monopolies?

At the time of writing, the Transurban share price is $13.75.

Could this ASX 200 share be a monopoly play?

Considering investing in ASX 200 giant, Transurban? Experts believe the toll road operator has plenty of reoccurring revenue and the ability to boost its fees alongside inflation.

Transurban operates toll roads in Melbourne, Sydney, Brisbane, and North America.

According to reporting by GEM Capital financial advisor, Mark Draper, published by the Australian Financial Review, investments in toll roads come with a side of certainty.

The job of a toll road operator is to build and maintain roads that convenience the public. They make their money by collecting fees from those who travel on their roads.

They generally have the right to collect tolls on their roads for a specified number of years. When that period ends, a toll road reverts to public infrastructure.

Investors Mutual portfolio manager Dan Moore was quoted by Draper as saying toll road operators’ income is generally protected from inflation, as their fees can be increased alongside the metric.

Additionally, according to Atlas Funds Management chief investment officer, Hugh Dive, the risk of competing toll roads being built nearby existing assets is low.

On top of that, once a road is built, maintaining it is relatively cheap. The assets can bring in margins of up to 80%, said Dive.

And governments tend to support the sector, even helping to collect unpaid fees.

Though, no investment ­­– not even in ASX 200 shares – is without risks.

Moore noted that recessions and resulting high employment could dampen toll road operators’ income.  

Additionally toll roads are, in a way, leased from governments. That m means there’s a risk that governments fail to stay true to their agreements. Perhaps, not allowing fees to rise in line with inflation – or expropriation – whereby fees are taken from the operator.

Transurban share price snapshot

2022 so far has been tough on the Transurban share price.

It has slipped 1.36% year to date. It’s also 0.87% lower than it was this time last year.

The post Could this ASX 200 share be one of the best monopoly plays there is? 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 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 Bruce Jackson.

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The fund manager Wilson Asset Management (WAM) has recently identified some ASX blue-chip shares that it owns (or owned) in one of its leading portfolios.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) that looks at the larger businesses on the ASX, which investors can call ASX blue-chip shares.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (before fees, expenses, and taxes) of 16.1% per annum since its inception in May 2016. That is superior to the S&P/ASX 200 Accumulation Index average return of 10.1%.

These are the blue-chip ASX shares that WAM outlines in its recent monthly update.

BHP Group Ltd (ASX: BHP)

WAM pointed out that BHP benefitted from the widespread volatility in commodity prices in March 2022. The fund manager believes that the higher prices will help earnings momentum going into FY23.

According to Wilson Asset Management, another factor helping BHP is the rising iron ore price despite increasing COVID-19 cases in China. WAM noted that the Chinese government promises to stimulate the economy.

WAM said signals by the government have become “louder” in recent weeks as it implements more lockdowns across the country. The fund manager thinks China will likely need to stimulate the economy in the second half of 2022 to achieve its annual GDP growth target, which could benefit the ASX blue-chip share.

Wilson Asset Management believes there is further upside for the BHP share price because of the strategic locations of the ASX mining share’s assets “deserving higher valuations” due to geopolitical tensions and concerns about the security of supply globally.

Wilson points out another bonus for BHP is that proceeds from the petroleum demerger will mean shareholders can expect a “significant” capital return over the next six months. WAM estimates this to be more than $40 billion.

Ramsay Health Care Limited (ASX: RHC)

WAM revealed that it had recently increased its position in Ramsay Health Care because of its earnings growth potential over the coming years.

There is a growing backlog of private and public hospital admissions after multiple suspensions of elective surgeries globally due to COVID lockdowns. According to WAM, this has led to an extended pipeline of elevated demand.

The fund manager said that between New South Wales, Victoria, Queensland and Western Australia, there are more than 260,000 people on public waiting lists for surgery.

There are a few things that WAM finds appealing about the private hospital operator. There are the “structural industry tailwinds” – that is, there are ageing populations in the countries where Ramsay operates. The ASX blue-chip share has $9 billion of land backing. WAM also points to a “favourable valuation” in an expensive sector.

The fund manager also points out that Ramsay’s Asia-based joint venture with Sime Darby received an indicative non-binding proposal from IHH Healthcare to buy the business for approximately $1.8 billion on a cash and debt-free basis. WAM thinks the proceeds would be put into debt reduction if that transaction goes ahead because of the recent acquisition of Elysium Healthcare.

The post These 2 blue-chip ASX shares are opportunities: Expert appeared first on The Motley Fool Australia.

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• What’s boosting the BHP share price today?
• 2 ASX 200 dividend giants named as buys by brokers

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 recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Betashares Global Cybersecurity ETF (ASX: HACK) is one of the well-liked exchange-traded funds (ETFs) on the ASX.

According to BetaShares, this ETF is around $770 million in size.

Part of its popularity has come from the returns the ETF has produced. Since its inception in August 2016, the HACK ETF has produced an average return per annum of 20.6%. Though, past performance is not a reliable indicator of future performance.

Expert rates the HACK ETF as a buy

Talking on a ‘buy hold sell’ Livewire video, Felicity Thomas from Shaw and Partners was asked to name an ETF that every investor should have in their portfolio. Her pick was Betashares Global Cybersecurity ETF. Here is the reasoning:

The reason I’ve chosen this is because cybercrime is meant to cost the world $10.5 trillion by 2025, which is huge. It also has amazing names in it like CrowdStrike. In a connected world where everyone is attached to their devices, it’s becoming the biggest problem that we’re all facing.

Betashares Global Cybersecurity ETF holdings

Thomas noted that there are some “amazing” names in the portfolio.

The fund holds around 40 positions in all. Crowdstrike is the heaviest of the portfolio with a 6.7% weighting.

But there are plenty of other businesses involved in the cybersecurity world including: Palo Alto Networks, Zscaler, Cisco Systems, Cloudflare, Splunk, Akamai Technologies, Booz Allen Hamilton, Mandiant, Leidos, Juniper Networks, Check Point Software, F5 Networks, Verisign, Cyberark Software, Fortinet, and more.

What is helping the earnings of the cybersecurity sector?

BetaShares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

According to Statista, global cybersecurity revenue is projected to increase from US$137.63 billion in 2017 to US$248.26 billion in 2023.

Australian cybercrime presents just a microcosm of this growing problem. COVID-19 has led to more Australians relying on the internet to work remotely, to access services and information, and to communicate. The Australian Cyber Security Centre (ACSC) says this environment has generated more opportunities for malicious cyber actors to exploit vulnerable targets in Australia.

The ACSC says in FY21, it received over 67,500 cybercrime reports. That’s an increase of nearly 13% from the previous financial year. In its annual report, the ACSC said:

A higher proportion of cyber security incidents this financial year was categorised by the ACSC as ‘substantial’ in impact. This change is due in part to an increased reporting of attacks by cybercriminals on larger organisations and the observed impact of these attacks on the victims, including several cases of data theft and/or services rendered offline.

The increasing frequency of cybercriminal activity is compounded by the increased complexity and sophistication of their operations. The accessibility of cybercrime services – such as ransomware-as-a-service (RaaS) – via the dark web increasingly opens the market to a growing number of malicious actors without significant technical expertise and without significant financial investment.

Ransom demands by cybercriminals ranged from thousands to millions of dollars and the use of dark web tools and services improved their capabilities, according to the ACSC.

Fund details

Some readers may want to know about the geographic allocation of the businesses.

The US has an 84% allocation, with Israel (3.4%), India (3%), and South Korea (2.5%) being the next three according to weightings.

While most of the ETF is invested in American businesses, it doesn’t mean that’s where most of the earnings are generated. Many of the holdings generate revenue from numerous countries.

The Betashares Global Cybersecurity ETF has an annual management fee of 0.67%.

The post What the heck is so good about Cybersecurity ASX ETF, HACK? 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. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The National Australia Bank Ltd. (ASX: NAB) share price rocketed to a multi-year high of $33.29 yesterday.

This is a stark contrast to when its shares were trading at a multi-decade low in March 2020. The steep fall was brought on by the COVID-19 pandemic which investors feared a deep recession.

Nonetheless, NAB shares have zoomed upwards since, creating wealth for investors who bought and held on during the tumultuous period.

Below, we calculate how much you would have made if you’d bought $5,000 worth of NAB shares since the COVID-19 crash.

How much would you have if you’d invested $5,000 since the COVID-19 crash?

If you’d invested $5,000 into NAB shares on 23 March, you would have picked them up for approximately $13.195 apiece. This equates to about 378 shares without topping up along the way.

Looking at yesterday’s closing price, the NAB share price finished at $33.25. This means that those 378 shares would now be worth $12,568.50.

Not a bad effort — almost doubling your initial investment in what is arguably one of ASX’s most safe and reliable companies. 

When looking at percentage terms, this implies an average yearly return of a whopping 55.96%.

In comparison, investing the same amount in an ASX 200 index-tracking fund would have netted you $8,320.72.

What about the dividends?

Over the course of the last two years, NAB has made a total of 4 dividend payments from July 2020 to December 2021.

Adding up those 4 dividends payments gives us an amount of $1.87 per share. Calculating the number of shares owned by the total dividend payment gives us a figure of $706.86.

When putting both the initial investment gains and dividend distribution, an investor would have $13,275.36 worth of NAB shares.

NAB share price summary

Over the past 12 months, NAB shares have surged by 25% higher following positive investor sentiment in the banking industry. With the Reserve Bank of Australia looking to hike interest rates, this could lead to a stronger profit for NAB.

NAB has a price-to-earnings (P/E) ratio of 17.95 and commands a market capitalisation of roughly $107 billion.

The post If you’d invested $5,000 in NAB shares just after the COVID crash, here’s what you’d have now appeared first on The Motley Fool Australia.

More reading

• Should investors buy the NAB share price at its 52-week highs?
• NAB share price lifts again to hit new 4-year high
• Do CBA shares offer the highest big bank dividend yield?
• Why are ASX 200 bank shares having such a stellar start to the week?
• 3 ASX 200 shares starting the week with new 52-week highs

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 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 Bruce Jackson.

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The Ramsay Health Care Limited (ASX: RHC) share price could shoot higher on Wednesday morning.

This follows news that the private hospital operator has received a takeover approach.

Ramsay share price on watch amid takeover approach

The Ramsay Health Care share price will be on watch today after the company confirmed speculation that it has received a takeover approach.

According to the release, Ramsay Health Care has received a conditional, non-binding, indicative proposal from a consortium of investors led by KKR to acquire 100% of the company by way of a scheme of arrangement.

Under the indicative proposal, Ramsay Health Care shareholders would be entitled to receive $88.00 cash per share, less any ordinary or special dividends paid to shareholders. This includes the recently paid ordinary dividend of 48.5 cents per share.

The offer of $88.00 per share represents a premium of 36.7% to the latest Ramsay Health Care share price of $64.39.

In addition, the release explains that shareholders would have the option to receive part of the consideration in unlisted scrip in the consortium holding entity.

Finally, if the scheme of arrangement were implemented, Ramsay Health Care would be permitted to pay a fully franked special dividend to distribute all available franking credits to shareholders. As of 31 December, but prior to its most recent dividend, Ramsay’s franking account balance was $823 million.

What now?

The release reveals that having reviewed the proposal, the Ramsay Board of Directors has determined it appropriate to provide the KKR Consortium with due diligence on a non-exclusive basis. This is to explore whether it can put forward a binding proposal that is in the best interests of shareholders.

However, Ramsay Health Care notes that the indicative proposal is subject to a number of conditions.

These include the completion of satisfactory due diligence, no disposal of any of Ramsay’s subsidiaries or properties, final approval of the Consortium’s investment committee, entry into a scheme implementation deed on customary terms and conditions, regulatory approvals, and shareholder approval.

Furthermore, the release highlights that the KKR wanted the indicative proposal to be confidential and reserved the right to withdraw it in the event it ceased to be confidential. As this has now occurred, it is able to back out without consequence.

The Ramsay Health Care Board will continue to keep the market informed in accordance with its continuous disclosure obligations.

The post Ramsay Health Care share price on watch amid $14.8bn takeover offer appeared first on The Motley Fool Australia.

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• Top broker tips Ramsay Health Care (ASX:RHC) share price to rise 14%
• 5 things to watch on the ASX 200 on Thursday
• Ramsay (ASX:RHC) share price pushes higher on US$1.35bn proposal for Asian JV

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 Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The team at Goldman Sachs has been busy looking through the tech sector for new shares to recommend.

Two that it has found worthy of the coveted “buy rating” are listed below.

Goldman notes that these companies have nascent but growing offshore businesses, which it believes present substantial potential long-term upside if they can succeed in executing their respective domestic playbooks to achieve dominance in new markets.

Readytech Holdings Ltd (ASX: RDY)

Goldman is very positive on this provider of mission-critical software-as-a-service to the education, workforce management, government, and justice sectors. Its analysts have initiated coverage on its shares with a buy rating and $5.00 price target.

The broker explained that its bullish view is predicated on:

“The market has given RDY little credit for its improving organic growth rate since listing (~10% in 2H20 to ~17% 1H22) while the company has maintained solid margins. We think RDY will continue to grow organically at a mid-teens growth rate, with upside from assumed continuation of bolt-on M&A. RDY’s software metrics and unit profitability are strong (low churn ~3%, high LTV/CAC), suggesting scope for RDY to improve margins towards scaled peers over time (~22% FY22E on a fully-expensed basis vs ~32% peers).

In addition, Goldman highlights that the Readytech share price trades at a huge discount to its peers despite its organic growth. It explained:

RDY trades at a deeply discounted valuation vs peers (we estimate a >50% discount on a FY23E EV/EBITDA growth-adjusted basis) which we think can narrow on continued demonstration of its organic growth credentials. We see possible long-term upside from continued growth in the UK, and possible expansion into the US and Canada (we think most likely led by its Student Management and Work Pathways software).”

TechnologyOne Ltd (ASX: TNE)

Another tech share that Goldman Sachs is bullish on is enterprise software company TechnologyOne. The broker has initiated coverage on its shares with a buy rating and $13.90 price target. It commented:

“In our view, TNE is well-placed to meet its A$500mn FY26 ARR [annualised recurring revenue] target and we are more constructive than consensus and the market (as implied by TNE’s current share price). SaaS flip uplift, elevated inflation (via contractual CPI pass-through) and underlying business growth underpin our A$505mn FY26 ARR estimate, and we think risks are skewed to the upside with our estimates assuming modest organic growth ex-flip (~10%).”

As well as achieving its ARR targets, the broker expects TechnologyOne’s margins to increase beyond historical levels.

“In addition, we think TNE can deliver on its ARR target while expanding profit margins, delivering profit-before-tax growth at the upper end or above its 10-15% historical range. We sit 1-6% above FY22-24 Visible Alpha (VA) consensus EPS and highlight that TNE is trading at a similar multiple to the peak of the last Fed hiking cycle (22x NTM EV/EBITDA vs 20x Oct-18) despite a significantly improved NTM growth outlook (17% now vs 9% Oct-18) and recurring revenue base (SaaS ARR >80% total ARR today vs <50% Oct-18).

Finally, Goldman sees a lot of potential for TechnologyOne in the UK market, which it estimates to be at least three times larger than the ANZ market. It said:

Long-term upside can come from TNE’s growing UK business, which after a slow start appears to have taken a positive turn recently – important for TNE’s long-term growth runway and a possible source of meaningful upside to our medium-term estimates in a >3x larger TAM vs ANZ.”

The post Goldman Sachs has just slapped buy ratings on these ASX tech shares 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. owns and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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