If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are expected to provide investors with great yields in the near term. This could potentially help offset the inflationary pressures that Australia is currently experiencing.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for income investors is Accent. It is the owner of a seemingly ever-increasing portfolio of footwear focused store brands. Among its biggest are HYPEDC, Pivot, Platypus, Sneaker Lab, and The Athlete’s Foot.

Accent was severely impacted by COVID related disruptions and lockdowns during the first half. This led to the retailer reporting a 72% decline in net profit after tax to $14.8 million. And with management warning that COVID uncertainty remains in the second half, its shares have unsurprisingly come under significant pressure.

While this is disappointing, it could be a buying opportunity for patient income investors. For example, analysts at UBS are forecasting a big rebound in Accent’s profits and dividends in FY 2023.

UBS has pencilled in a fully franked dividend of 7 cents per share in FY 2022 and then 13 cents per share in FY 2023. Based on the current Accent share price of $1.56, this will mean yields of 4.5% and 8.3%, respectively.

The broker has a buy rating and $2.50 price target on the company’s shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that income investors might want to look closer at is this agricultural real estate investment trust (REIT).

Rural Funds owns a portfolio of high quality Australian agricultural assets that are leased to many of the largest industry players. These include JBS Australia, Select Harvests Limited (ASX: SHV), and Treasury Wine Estates Ltd (ASX: TWE).

These leases are on long term agreements and have fixed rental increases built into them. As a result, management has great visibility on its future earnings. This allows it to confidently target an inflation-busting 4% increase in its dividend each year.

In FY 2022, the company intends to increase its dividend by its annual target rate to 11.73 cents per share. It has also announced plans to pay a 12.2 cents per share dividend in FY 2023. Based on the current Rural Funds share price of $3.05, this will mean yields of 3.85% and 4%, respectively.

The post 2 ASX dividend shares with great yields to beat inflation appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with attractive yields
• Opportunity knocking? 3 ASX All Ords shares trading at 52-week lows today
• 2 ASX dividend shares expected to pay mega income yields
• 2 fully franked ASX dividend shares experts rate as buys
• 2 defensive ASX dividend shares offering reliable income

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 owns and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Accent Group and Treasury Wine Estates 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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If you’re a fan of growth shares, then you may want to look closely at the two shares listed below.

Here’s why these growth shares have been rated as buys:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. It is a leading online retailer in the ~$11 billion Australian beauty and personal care (BPC) market.

Adore Beauty has almost 1 million active customers and generated revenue of $113.1 million from them during the first half of FY 2022. This was up 18% over the prior corresponding period, which is no easy feat given the COVID boost it received during the prior period.

However, despite this solid growth and its positive outlook from the shift to online shopping, the company’s shares continue to trend lower and lower and recently hit a new low. And while they could yet fall further, one leading broker is tipping its shares to more than double over the next 12 months.

That broker is UBS, which currently has a buy rating and $4.70 price target on its shares. This compares to the latest Adore Beauty share price of $1.80.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share to look at is Nitro Software. It is a global document productivity software company behind the Nitro Productivity Suite. It provides integrated PDF productivity and eSignature tools to customers through a horizontal, software as a service and desktop-based software suite.

As with Adore Beauty, Nitro’s shares have fallen heavily from their highs. Goldman Sachs sees this as a buying opportunity. It is bullish on the company due to its growth potential as a challenger in a US$34 billion total addressable market across PDF productivity, e-signing and workflows.

It commented: “Nitro is down ~50% [now 62%] since November with the market currently pricing in long-term growth and margin assumptions that understate Nitro’s potential, in our view. We are positive on Nitro’s structural growth opportunity, reflected in our DCF scenario analysis implying an attractive asymmetric risk/reward skew.”

Goldman Sachs has a buy rating and $2.60 price target on its shares. This compares to the latest Nitro share price of $1.31.

The post 2 buy-rated ASX growth shares that analysts say can double appeared first on The Motley Fool Australia.

More reading

• 3 top ASX growth shares that experts say are buys
• 3 factors that could make the Adore Beauty share price too good to miss
• Why is the Adore Beauty share price tumbling 9% to an all-time low?
• Broker names 2 exciting ASX shares to buy with 80% upside potential
• Here are 3 growth shares analysts are tipping to rocket 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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Nitro Software 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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If you’re on the lookout for new investment ideas, then listed below are two shares to consider from very different sides of the market.

Here’s why experts think these two ASX 200 shares are buys:

Life360 Inc (ASX: 360)

The first ASX 200 share to look at is technology company Life360. Through its eponymous Life360 app, the company operates in the digital consumer subscription services market. It has a focus on products and services for digitally native families, where all members of the household are connected by smartphones.

A whopping 33.8 million monthly active users are using its app, which is underpinning stellar recurring revenue growth. The company also has significant cross- and up-selling opportunities to monetise its user base further in the future.

Unfortunately, as Life360 is still operating at a loss, its shares have been hammered this year during the tech selloff. However, the team at Bell Potter believe this is a real buying opportunity for investors, especially given its belief that the company has enough cash to see it through to profitability.

The broker is also expecting the core business to report very strong growth during the first quarter.

It said: “We expect the strong growth in the core business of Life360 (i.e. ex Jiobit and Tile) shown in Q3 and Q4 of last year to continue into Q1 this year. Specifically, we expect the year-on-year growth in AMR (annualised monthly revenue) – excluding Jiobit and Tile – to be c.50% in March 2022 which is similar to the reported y-o-y growth of 48% in September and 51% in December 2021.”

Its analysts currently have a buy rating and $10.00 price target on Life360’s shares.

South32 Ltd (ASX: S32)

Another ASX 200 share to consider is mining giant South32.

It is a diversified mining and metals company producing bauxite, alumina, aluminium, coal, copper, manganese, nickel, silver, lead, and zinc.

With the prices of many of these commodities trading at high prices currently, South32 has been tipped to generate significant profits and cash flow. The latter has Goldman Sachs forecasting fully franked dividend yields in or around 10% over the next three years.

Goldman said: “We are Buy rated on S32.AX (on CL) with strong FCF (17% base case for FY23), exposure to base metals (75% EBITDA; aluminium & alumina c. 50% of FY23 EBITDA, copper c.10 %, zinc/nickel c. 20%), and with 7%/3% Cu Eq production growth in FY22/FY23 driven by; ~30% or c. 280ktpa increase in aluminium production from the Alumar restart & c. 17% increase in Mozal stake, creep in nickel from Cerro Matoso and lead/zinc/silver from Cannington, and the Sierra Gorda copper acquisition.”

The broker has a conviction buy rating and a $5.80 price target on its shares.

The post Mining and tech: Experts name 2 ASX 200 shares to buy now appeared first on The Motley Fool Australia.

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• Goldman Sachs names 3 ASX 200 mining shares to buy today
• The South32 share price is closing in on its all-time high. Here’s why
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• Why is the South32 share price edging higher today?

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. 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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Construction materials companies are admittedly not glamorous to ASX investors.

They’re not full of future optimism like the technology stocks, nor are they cyclically exciting like mining.

But people and businesses always need housing and buildings, and existing ones always need maintenance and repair. Demand is never lacking.

As such, Ord Minnett senior investment advisor Tony Paterno picked out a couple of ASX shares that he would snap up right now:

269% profit boost? Yes, please

Paterno noted that Brickworks Limited (ASX: BKW) recently posted a stunning improvement in its profit.

“Brickworks reported first half 2022 underlying net profit after tax of $330 million, up 269% on the prior corresponding period,” he told The Bull.

“The company declared an interim dividend of 22 cents, up a cent on a year ago.”

All business units, except for building products in North America, reported “strong earnings growth”, Paterno said.

“In the medium term, we expect company earnings to continue growing on the back of a strong pipeline of work from housing activity in Australia and improving non-residential construction activity in the US.”

Brickworks shares are down more than 5% for the year thus far. The stock dipped last week after going ex-dividend, bringing the price-to-earnings ratio down to less than 5.

Brickworks is handing out a significant 2.61% dividend yield, according to The Motley Fool website.

When the market drives up the price of the product you’re selling

BlueScope Steel Limited (ASX: BSL) is another ASX share Paterno would buy at the moment.

“Steel prices in Europe and the US have moved higher.”

The business is set to enjoy a perfect storm in the steel market, according to Paterno.

“Despite declining from recent highs, spot spreads are still generating an attractive 18% free cash flow yield for BlueScope from fiscal year 2023 and beyond,” he said.

“This highlights that BlueScope remains a high generator of free cash flow despite strong cost inflation.” 

It seems Paterno is not alone in his bullishness.

According to CMC Markets, eight out of 11 analysts surveyed rate Bluescope shares as a “strong buy”, with one other rating it as “moderate buy”.

Bluescope shares have remained flat so far in 2022.

The post Bricks and steel: expert reveals 2 ASX shares ready to skyrocket appeared first on The Motley Fool Australia.

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• Is it time to buy these 2 quality ASX shares?
• Why is the Brickworks share price sliding on Monday?
• ASX 200 midday update: IGO increases Western Areas offer, BlueScope makes US acquisition
• BlueScope share price jumps on $671m acquisition news
• 5 things to watch on the ASX 200 on Monday

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. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks. 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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There are a lot of shares to choose from on the Australian share market.

To narrow things down, listed below are two ASX shares that are highly rated by analysts.

Here’s what they are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s shares have been having a tough year. Weakness in Japan and concerns over inflationary pressures have been weighing on investor sentiment.

The team at Morgans remains positive on the company and believes recent share price weakness is a buying opportunity.

It said: “We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months.”

Morgans has an add rating and $100 price target on the company’s shares.

Lifestyle Communities Limited (ASX: LIC)

Goldman Sachs is a fan of this retirement communities company.

The broker believes Lifestyle Communities is well-placed to benefit from Australia’s ageing population and the structural growth in land lease living.

It explained: “We believe LIC is well positioned to benefit from shifting demographic trends, as its business helps address some critical emerging social issues. Its core business is to provide affordable housing to an ageing population, addressing a key social issue that is becoming more prevalent as the proportion of over 50’s increases. We expect as this population cohort continues to grow, this should deliver structural growth for the industry; we expect demand to far outpace supply at current build rates.”

Goldman has a conviction buy rating and $21.60 price target on its shares.

The post Why analysts say investors should buy these top ASX shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Why Allkem, Domino’s, Qantas, and Uniti shares are racing higher
• 2 stellar ASX growth shares brokers say have huge upside potential
• Top ASX shares to buy in April 2022
• 3 ASX growth shares brokers rate as buys for April

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 Dominos Pizza Enterprises 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Citi, its analysts have retained their sell rating and $90.75 price target on this banking giant’s shares. Citi has been reviewing the banking sector ahead of potential rate hikes by the Reserve Bank. While the broker believes cash rate increases could support stronger than expected net interest margins in the near future, it isn’t enough for a more positive rating on CBA. Citi continues to see its shares as expensive at the current level and believes there are better options in the sector. The CBA share price was trading at $106.50 on Thursday.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this mining giant’s shares to $15.20. The broker believes Fortescue’s shares are overvalued compared to its peers. Goldman also has concerns with capex and execution risks for the Iron Bridge and Fortescue Future Industries businesses. The Fortescue share price was fetching $21.61 at Thursday’s close.

Pro Medicus Limited (ASX: PME)

Another note out of Goldman Sachs reveals that its analysts have retained their sell rating and $44.80 price target on this health imaging technology company’s shares. This follows news that Pro Medicus has signed a major $32 million eight-year deal with Inova Health System. Although Goldman was pleased with the deal and is a fan of the company, it believes its shares are expensive at over 50x earnings. This is especially the case given that the company does not have sufficient visibility to know if recent win-rates can be sustained. The Pro Medicus share price ended the week at $48.63.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• The CBA share price has leapt 14% since February. Too late to buy?
• How do you value the Fortescue share price in April 2022?
• Here are the top 10 ASX mining companies by market cap
• Do CBA shares offer the highest big bank dividend yield?

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 Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus 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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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.

Stock splits can be exciting events, right? They certainly draw attention to the splitting company, even if they don’t necessarily move the stock price up.

Consider the fates of two would-be splitters, Tesla (NASDAQ: TSLA) and GameStop (NYSE: GME). Since announcing their respective share divisions in late March, the share prices of both have declined (GameStop by 13.2% and Tesla by 9.6%).

But softening share prices can often make companies more attractive. Let’s see which of these contenders is the better buy opportunity right now.

A tale of two splitters

Tesla and GameStop aren’t directly comparable as businesses, but they do share some similarities. Both have been criticized for the way they operate in the past and both have come close to bankruptcy at various points in their histories. The two companies are also the subject of constant, and sometimes frenzied, online discussion. This somewhat distorts the value of their stocks, as chatter and noise can knock a company’s price around quite a bit.

Let’s cut through the static and look at the fundamentals of the pair. Both operate in relatively high-cost and low-margin environments. Tesla cars require thousands of components, some rather expensive, and GameStop has to maintain a decent level of inventory and operate and staff brick-and-mortar stores. Earning a buck for the two companies, then, has been a challenge at times.

Electrifying growth for Tesla

Tesla is a recent arrival to the profit garage. Its bottom line has only recently been consistently in the black. It’s managed to do this with a laser focus not only on EVs exclusively — unlike slower-moving, auto-making competitors who are still beholden to the traditional internal-combustion engine — but also because the “cool factor” is nicely baked into its vehicles. This is especially true with the popular, higher-end offerings such as the Model X SUV.

This is a business model expertly practised by Apple, whose iPhone line of products is still the premium smartphone line of choice for many consumers after 15 years. The beauty of this approach is that quality premium products command higher prices and, all things being equal, produce higher margins for their makers. That was a key factor in Tesla’s dramatic lurch into profitability.

This success is combined with heady top-line growth. People want to own next-generation cars and desire to own Teslas. Demand continues to be bodybuilder strong and has helped lift revenue higher. Tesla’s full-year 2021 sales were nearly $54 billion, a sky-high 71% improvement year over year.

Is it game on or off for GameStop?

During the coronavirus pandemic, GameStop grew to prominence because of the many online denizens posting feverishly about the company. For a time (and still to some extent these days), it was the company that personified the new term “meme stocks,” with the outcome of entire trading days dependent on the tone of online discussions.

This kicked off in late 2020 with the most famous short squeeze in recent history. The shorts were ultimately routed, and GameStop began the roller-coaster ride it’s still on today.

To be blunt, it’s not a good investment based on the business fundamentals. While GameStop hasn’t done badly squeezing out sales growth (18% in full-year 2021) lately, it’s a retail dinosaur that usually loses money. Over the past four years, its annual loss has ranged from just under $215 million to nearly $800 million. Zooming in, the past three quarters have seen the flailing company slide increasingly deeper into the red on the bottom line.

And the winner is…

In one corner, we have Tesla as the highest-profitable operator in a red-hot segment in which demand shows no sign of cooling. In the opposite corner stands wobbly GameStop, weakened by a legacy business model that’s hard to succeed with today and tough to pivot from. The company’s also not a hot prospect to excel with behind-the-trend ventures, such as its recently announced non-fungible token (NFT) platform.

I suppose some argument could be made in favor of GameStop being far cheaper on certain, highly selected valuations. The company’s price-to-sales ratio, for instance, stands at less than two, while that of ever-expensive Tesla is a bloated 24-plus.

Then again, Tesla is a zeitgeist company with its best years in front of it. GameStop is a gossip-prone, volatile stock fronting a money-losing business.

There’s no real competition here. Admittedly, Tesla’s valuations give me pause to think and its top management is a bit flaky for my taste, but it’s built a powerful brand and will continue to be a leader in its segment. The EV specialist is unhesitatingly my pick in this contest.

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

The post Better stock-split buy: Tesla vs. GameStop appeared first on The Motley Fool Australia.

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• Why cryptos like Bitcoin are ‘no longer in the fringes’

Eric Volkman owns Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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Shares in National Australia Bank Ltd. (ASX: NAB) finished trading on Thursday at $32.85 apiece in afternoon trade.

NAB shares have thrust to 52-week highs in recent months after surging off low points in December, February and then again in March.

In the past month, its share price has jumped 10% and is now up 14% for the year to date.

Is NAB a buy?

Analysts at Morgan Stanley recently noted that NAB could increase its FY22 cost guidance, but that could very well be offset if the bank meets its revenue growth targets.

It is neutral on NAB shares and values the company at $31.50 apiece, slightly below the consensus valuation of $32.46 per share.

Analysts at Bloomberg reckon there could be more to the NAB story when digging a little deeper. They rank NAB as Australia’s “top green lender” after committing to an “environmental-finance target of A$70 billion and committed funding of A$56 billion.”

“It’s also Australia’s leading renewables lender and its lending carbon-intensity is well below peers. It hit its 2025 emission target last year and disclosure is among the best of Australian financials.”

That’s something worth thinking about particularly for ESG and/or sustainability minded investors.

Meanwhile, JP Morgan analysts are bullish on the bank and reckon it is set to outstrip peers in revenue growth and capital management this year.

“We have an overweight recommendation on NAB reflecting stronger-than-peer revenue growth prospects, likely sound cost control, and ongoing capital management,” it said in a recent note.

“The stronger revenue profile reflects NAB’s tilt towards small business banking, which should insulate it from ROE pressures in retail banking, as well as strong execution in its market leading SME franchise where it continues to take market share,” it added.

“While we think it possible that NAB walks away from its cost targets, this is already factored into our forecasts and still we see NAB’s pre-provision profit growth outstripping peers.”

It rates NAB a buy and values the bank at $33.50 per share, slightly above consensus.

In the last 12 months, the NAB share price has held gains and is up 23% in that time after a period of rough volatility.

The post Should investors buy the NAB share price at its 52-week highs? appeared first on The Motley Fool Australia.

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• 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
• Is the NAB share price entering a ‘sweet spot’?

Motley Fool contributor Zach Bristow 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Allkem Ltd (ASX: AKE)

According to a note out of Citi, its analysts have retained their buy rating and bumped up their price target on this lithium miner’s shares to $16.00. Citi expects lithium prices to be stronger for longer on the belief that it will be a couple of years until the lithium market finds a balance again. This bodes well for Allkem, which remains the broker’s top pick in the industry. The Allkem share price ended the week at $13.52.

Pilbara Minerals Ltd (ASX: PLS)

A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this lithium miner’s shares slightly to $4.00. This follows the release of a quarterly update which fell short of the broker’s expectations due largely to a delayed shipment. Nevertheless, Macquarie remains positive on Pilbara Minerals due to strong lithium prices and its bold production targets. The Pilbara Minerals share price was fetching $2.96 at Thursday’s close.

ResMed Inc. (ASX: RMD)

Another note out of Citi reveals that its analysts have retained their buy rating and $38.00 price target on this medical device company’s shares. Citi believes ResMed is well-placed to benefit post-COVID if it can avoid short term supply chain disruption. Especially given the enormous Philips product recall, which is expected to run until the end of the year. The ResMed share price ended the week at $31.61.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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There has been significant volatility for ASX tech shares in April 2022. But could they be opportunities?

Some technology businesses have the capability of achieving good profit margins because of the intangible nature of their offering.

When combined with revenue growth, tech businesses could deliver good results over the long term.

Here are two ASX tech shares to consider:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a business that predominately serves large and medium US churches in the US. It provides digital donation tools and church management systems.

The company processes billions of dollars of donations each year. It has a total of around 14,000 customers. There is a growing number of customers using multiple products from Pushpay’s offering. It recently acquired streaming business Resi Media, expanding the company’s offering.

Pushpay describes Resi Media as a high-growth business which has a “strong foothold” in the US faith sector with over 70% of the ‘Outreach 100’ churches using Resi products.

This ASX tech share is looking to expand in the Catholic sector, eventually reaching a 25% market share, by the number of parishes. According to IBISWorld, in 2016, 27% of US faith giving was generated from Catholic services, totalling US$30 billion. Pushpay says that the Catholic segment represents an estimated annual revenue opportunity of US$330 million.

The benefits from the Catholic segment are expected to be realised “incrementally” over the next financial years.

Pushpay continues to grow its gross profit margin, which increased from 68% to 69% in the first half of FY22. This is up from 54% at March 2018.

TechnologyOne Ltd (ASX: TNE)

This ASX tech share aims to double in size every five years. It provides enterprise software that allows clients to access their software from anywhere.

It says that its ‘future’ business is expecting to grow by at least 15% per annum, with a particular focus on software as a service (SaaS). The company says that the quality of its SaaS revenue is very high, with a recurring contractual nature, combined with a “very low” churn rate of around 1%. The target is that 95% of revenue is recurring by FY27.

Total annual recurring revenue (ARR) is expected to increase to at least $500 million by FY26. The profit before tax margin was 31% in FY21 and is expected to improve to 35% in the next few years thanks to economies of scale and cost reductions.

TechnologyOne sees a “significant” upside in the UK in the coming years, with the total addressable market in the UK three times the size as the Asia Pacific region.

The ASX tech share says that SaaS is creating significant opportunities, with a “strong” pipeline for 2022.

It’s currently rated as a buy by the broker Morgans, with a price target of $13.73.

The post Are these 2 ASX tech shares buys in April? appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX growth shares to buy with ~30% upside potential
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• 2 highly rated ASX 200 shares analysts are tipping as buys right now
• Is it time to buy these 2 beaten-up ASX shares in April 2022?
• Analysts name 3 ASX 200 shares that could generate strong returns

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 PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PUSHPAY FPO NZX. 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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