The Webjet Limited (ASX: WEB) share price moved in circles for the majority of this month, registering a 1.8% gain.

Investors appear to have mixed feelings when it comes to deciding the value of Webjet shares in the current climate.

At Wednesday’s market close, the online travel agent’s shares finished 1.81% higher to $5.63.

What’s weighing down Webjet shares lately?

A catalyst as to why Webjet shares have failed to take off could be because of the war in Ukraine.

Russian aggression spooked global markets, sending commodities prices soaring. This is particularly in relation to oil, which airlines need to fuel the planes. Most likely this leads to higher ticket prices from airlines, in which Webjet’s profit margins could be squeezed consequently.

In addition, with war raging on Europe’s doorstep, passengers might be less likely to travel to the region.

Webjet operates in 22 countries that include the United Kingdom, Ireland and Europe, the latter of which is the biggest market.

In its first half results, the WebBeds division recorded $158 million in total transaction value (TTV) for Europe. Next on the list was the Asia Pacific region with $110 million, and North America at $93 million.

Webjet reported a cash surplus of $3.5 million per month, a significant turnaround compared to FY21. Severe lockdowns led the company to record an average monthly cash burn of $5.5 million in the previous financial year.

Webjet noted that TTV could reach pre-COVID levels by the second-half of FY23. The group portfolio will be a much leaner business, having trimmed 20% of operating costs.

All eyes will be on Webjet’s FY22 results which will be released sometime in late May.

Webjet share price summary

In the past 12 months, the Webjet share price has lost more than 5%. This is despite hitting a 52-week high of $6.89 as recently as October 2021.

The company’s shares are still a long way off their pre-COVID levels of around the $9 mark.

Based on valuation grounds, Webjet has a market capitalisation of roughly $2.14 billion.

The post Why has March been such a lousy month for the Webjet (ASX:WEB) share price? appeared first on The Motley Fool Australia.

More reading

• Why has the Webjet (ASX:WEB) share price surged 9% in two weeks?
• These are the 10 most shorted ASX shares
• Goldman Sachs tips Webjet (ASX:WEB) share price to rise over 20%
• Why are ASX travel shares taking off today?
• The Webjet (ASX:WEB) share price has fallen 10% in a month

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

from The Motley Fool Australia https://ift.tt/CKY1wtZ

In just two weeks, the Altium Limited (ASX: ALU) share price has gone up by 7%. Could the ASX tech share keep going up?

Altium shares are starting to recover from the significant fall that the company has seen from the beginning of the year.

Even now, the Altium share price is still down around 25% in 2022.

What are the prospects for the company?

Growth expectations

A quote from the grandfather of (value) investing, Benjamin Graham, could be applicable here for the Altium share price. Benjamin Graham taught Warren Buffett about investing early in his investment life.

Mr Graham said:

In the short run, the market is a voting machine. But, in the long run, it is a weighing machine.

In other words, a business is subject to changes in popularity in the short-term. But in the long run, it can prove itself with the financial numbers it achieves.

Altium says it is picking up the pace towards market dominance and accelerating its transformative vision to digitally connect electronic design and manufacturing to the broader engineering ecosystem.

It has many offerings which engineers can use, including Altium Designer, Octopart, NEXUS and more. The cloud platform of Altium 365 is seeing rapid adoption by subscribers.

In FY22, Altium is expected to report revenue growth of between 18% to 20%, with annual recurring revenue (ARR) growth of between 23% to 27%.

By FY25 or FY26, it is aiming to reach US$500 million of revenue with 100,000 Altium Designer subscribers. Recurring revenue is expected to reach around 95% of the total, excluding China. The progress towards these goals could be an important influence on the Altium share price.

How Altium plans to win

Altium says that it’s going to aggressively scale enterprise sales and bring forward direct monetisation of Altium 365. To sustain high growth and take advantage of opportunities, Altium says it must bring in new talent as it transitions beyond a software and product company to a cloud and platform company.

The ASX tech share believes that it is exceptionally placed to take advantage of the post-pandemic conditions and to attract top-level talent.

The margin impact of hiring talent and paying them with shares has already been included in Altium’s ‘flight path’. The underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin for FY22 is expected to be between 34% to 36%, with expectations it will grow close to 40% by FY25 or FY26.

Altium boasts that it has the only digital platform connecting electronic design to realisation in the mainstream engineering market.

Altimade is an area where the company sees growth, alongside its core software. This provides cloud-based ‘smart’ manufacturing that aims to improve productivity and manufacturability of electronics hardware and manage the supply chain of components as well as production risk.

Is the Altium share price a buy?

The broker Bell Potter currently has a buy rating on the Altium share price, with a price target of $38.75. That implies a potential upside of around 15% from the current price.

However, Citi rates it as a hold with a price target of $34.10, which is only slightly higher than where it is now.

The post The Altium (ASX:ALU) share price has leapt 7% in 2 weeks. Could it be heading higher? appeared first on The Motley Fool Australia.

More reading

• 3 beaten-down technology ASX shares to buy right now: expert
• Here are 3 ASX growth shares analysts are tipping as buys
• These 2 ASX shares are growing rapidly, are they unstoppable?
• Is the Altium (ASX:ALU) share price too cheap to ignore?
• 3 ASX growth shares brokers rate as buys

Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium. 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.

from The Motley Fool Australia https://ift.tt/IWs21vm

The Brickworks Limited (ASX: BKW) share price will be on watch this morning.

This follows the release of the building products company’s half year results.

Brickworks share price on watch amid strong profit growth

• Revenue up 24% to $535 million
• Underlying earnings before interest and tax (EBIT) up 254% to $450 million
• Underlying net profit after tax up 269% to $330 million
• Fully franked interim dividend up 5% to 22 cents per share

What happened during the first half?

For the six months ended 31 January, Brickworks reported a 24% increase in revenue to $535 million and a 254% jump in underlying EBIT to $450 million. The latter compares to Citi’s estimate of $321 million, which could bode well for the Brickworks share price today.

The company’s top line result was driven by a 6% increase in Building Products Australia revenue to $330 million and an 84% lift in Building Products North America revenue to $187 million. The latter reflects the acquisition of IBC in August 2021.

Whereas its earnings growth was driven largely by investment earnings of $73 million and a $349 million increase in the value of its share of its joint venture property trust with Goodman Group (ASX: GMG) to $1,260 million. This was supported by a 66% increase in Building Products earnings to a more modest $27 million.

In light of the source of its earnings growth, Brickworks has only increased its fully franked interim dividend by a single cent or 5% to 22 cents per share.

Management commentary

Brickworks’ Managing Director, Mr. Lindsay Partridge, was very pleased with the performance of its property trust.

He said: “We have seen strong demand and sustained growth in the value of our Property Trust over a number of years. The pandemic has only fuelled this growth, by accelerating industry trends towards online shopping and increasing the importance of well-located distribution hubs and sophisticated supply chain solutions. These trends are reflected in our independent revaluation process, that has resulted in average capitalisation rate compression of 50 basis points to 3.6%, across the leased assets within the Property Trust.”

Looking ahead, Mr Partridge appears optimistic on the company’s future but warned of potential challenges.

He commented: “Brickworks is in a strong position, with a diversified portfolio of attractive assets. The increasing scale of our operations means we are on track to record over $1 billion in annual Group revenue, for the first time.”

“Of course, the outbreak of war in Ukraine has created increased uncertainty that has the potential to significantly impact all of our businesses in a variety of ways. These impacts may include the price and availability of energy, upward pressure on inflation and interest rates and a decline in consumer confidence. Further strain on international supply chains is already evident, with shipping rates increasing back to levels not seen since the worst of the pandemic,” Partridge added.

New operational property trust

In light of the overwhelming success of its joint venture with Goodman, the two parties are intending to launch a new operational property trust.

The release advises that Brickworks has been exploring opportunities to realise value from its portfolio of operational land and is now in advanced discussions in relation to a potential transaction that would include the launch of a new joint venture property trust in partnership with Goodman, comprising a portfolio of properties tenanted by Brickworks’ building products business.

An initial portfolio of 15 building products’ properties, with a total gross value of around $415 million, has been identified for inclusion in the first stage of the jointly owned operational property trust. The sale and lease back of these manufacturing sites will deliver gross cash proceeds of around $200 million and an estimated pre-tax profit of $260 million to $280 million.

Mr Partridge said: “The partial sale of a selection of our manufacturing sites will enable Brickworks to secure cash proceeds and recognise profit from the significant underlying land value of these sites. Over the longer term, the partnership with Goodman will support further value creation, with some properties having the potential for development and greater utilisation.”

The post Brickworks (ASX:BKW) share price on watch amid 269% first half profit jump appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX dividend shares for long-term income potential: Experts
• 2 ASX 200 blue-chip shares to buy this month: experts
• 3 buy-rated blue chip ASX 200 shares according to experts
• This high-yield ASX 200 dividend share is swimming in cash

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 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.

from The Motley Fool Australia https://ift.tt/SOBc9ns

It’s been a brutal year for many ASX shares.

Sure, the S&P/ASX 200 Index (ASX: XJO) is only down 2.7% for the year. But resources and financial stocks are carrying the load.

For most companies outside those sectors, 2022 has been a bloodbath.

One fund manager had the unenviable job of notifying his clients that 2 of the stocks in their portfolio had fallen around 20% last month.

But Glenmore Asset Management portfolio manager Robert Gregory also explained why he’s keeping the faith that they would rise again:

‘Very comfortable with the earnings outlook’

NBN competitor Uniti Group Ltd (ASX: UWL) saw its share price plummet 21.3% in February.

Gregory reckoned this fall “seemed excessive”, because it reported great numbers that met analyst forecasts.

“Uniti delivered a solid 1H22 result, with underlying EBITDA of $70.5 million, up +9%, despite a fall in construction revenue (covid related),” he said in a memo to clients.

“The company said it was on track for FY22 underlying EBITDA of $145 million, which again was in line with expectations.”

He put down the shocking month to a general selloff of mid-cap growth shares.

“We remain very comfortable with the earnings outlook for the company.”

Uniti shares jumped a massive 10.7% on Wednesday after media reports that Macquarie Group Ltd (ASX: MQG) was planning to acquire the company.

The stock was placed in a trading halt at around 3 pm AEDT.

Not a good result, but well-placed for the future

Mineral Resources Limited (ASX: MIN) did not share the joy of its resources peers as the stock price dropped 18.3% in February.

This was due to “lower than expected” realised iron ore prices plus higher operating costs, according to Gregory.

“Interim EBITDA was $156 million, which was well below market expectations and 1H21, which was $607 million,” he said. 

“The Mining Services business was the top performer (EBITDA of $282 million), whilst Mineral Resources’ lithium and iron ore mining divisions both reported losses.”

Gregory admitted the financials were “disappointing” but is still bullish on the stock.

“We remain positive on Mineral Resources’ medium-term prospects, particularly the 30mtpa Ashburton iron ore project (targeted to commence in 2H of 2024), which although not yet formally approved, will be a much lower cost source of iron ore production, and hence should be profitable even in periods of lower prices.”

The post 2 ravaged ASX shares that will rise again: expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Uniti (ASX: UWL) share price surges 11% to record high as Macquarie bid appears confirmed
• Uniti (ASX:UWL) share price jumps amid rumoured Macquarie approach
• 2 ASX shares with compelling futures: fund manager
• Uniti (ASX:UWL) share price climbs amid reports Vocus will make a play

Motley Fool contributor Tony Yoo owns Macquarie Group Limited. 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 Macquarie Group Limited and Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/OcdsnUl

Is the bloodbath over for technology stocks?

That’s what many investors, especially those who dipped their toes in over the past 2 years, will be thinking.

The S&P/ASX All Technology Index (ASX: XTX) is down 23% since November, which is testing the patience of growth investors. 

But could such a dip present some bargains?

Medallion Financial managing director Michael Wayne reckons it currently does “make sense” to consider buying some “quality names” with a view to holding them for at least 2 to 4 years.

“Markets tend to get overly negative on the downside and overly optimistic on the upside,” he told Switzer TV Investing.

In the current situation, Wayne likes the look of 3 ASX tech shares in particular:

Anytime this stock is less than $100, grab it

Wayne’s team has high conviction that Xero Limited (ASX: XRO) shares are a bargain at the moment.

The stock price for the accounting software maker has plummeted around 28% for the year so far, closing Wednesday at $102.93 after hovering around $100 for most of the day.

“Xero’s one we’ve actually been buying over the last week or so,” he said.

“Anything sub-$100 we think, on a long-term basis, will be fairly attractive.”

Wayne is not sure why the Xero share price has been through wild volatility in the past 12 months, but he has much faith in the underlying business.

“It’s a very high-quality business,” he said.

“They’ve turned profitable in the last 12, 18 months. They continue to grow very nicely in the UK and US, and continue to chip away in Australia and New Zealand.”

‘Basically a monopoly’

Audio technology maker Audinate Group Ltd (ASX: AD8) has been an investment that Wayne has spruiked for some time now.

Despite losing one-third of its value since 10 December, he’s still keeping the faith.

“We still like it. We think it’s very good quality,” said Wayne.

“The fact that it’s basically a monopoly in that space at the moment, growing many multiple times the nearest competitor, we think it’s worth persisting.”

Audinate’s flagship product is Dante, which is a network protocol that allows audio equipment at large venues to talk to one other without wires.

Wayne attributed the recent struggles to COVID-19-related supply chain issues, which is not a chronic problem and shows continuing demand.

Share price dropped while business has improved

Network-as-a-service provider Megaport Ltd (ASX: MP1) has seen its share price plunge 27% so far in 2022.

But Wayne is licking his lips at this discount because the company showed very positive numbers in last month’s financials.

“When you consider Megaport was $20 not that long ago, and $13 at the moment — and the business has fundamentally improved, then we’re confident,” he said.

“This is a company that’s meant to be turning profitable in the next 6 months or so.”

Wayne’s not the only fan of Megaport, with Firetrail portfolio manager Matthew Fist last week singing its praises.

“If you become a Megaport customer, in the first year you’re going to spend $1. Every single year after that, you increase the amount you spend with Megaport by 45%,” he said.

“This makes Megaport, in our view, one of the highest quality companies on the ASX.”

The post 3 ASX tech shares worth buying now to hold for years appeared first on The Motley Fool Australia.

More reading

• 3 beaten-down technology ASX shares to buy right now: expert
• Analysts name 2 ASX growth shares to buy
• Is the Xero (ASX:XRO) share price on the way back up to its January highs?
• 2 small-cap ASX shares ready to take you on a ride
• Here are 3 ASX growth shares analysts are tipping as buys

Motley Fool contributor Tony Yoo owns AUDINATEGL FPO, MEGAPORT FPO, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AUDINATEGL FPO, MEGAPORT FPO, and Xero. The Motley Fool Australia owns and has recommended AUDINATEGL FPO and Xero. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/Ghq5Pcs

Technology shares have been in freefall since November, with the S&P/ASX All Technology Index (ASX: XTX) losing 23% since then.

But as we see a mini-revival in March, the question remains whether some tech stocks have been sold too much.

After all, interest rate fears have triggered the market to dump high-growth ASX shares — but those rate hikes haven’t actually happened yet.

So is it foolish to buy now when there is more pain to come?

Burman Invest chief investment officer Julia Lee reckons selective buying is key at the moment.

“As interest rates rise, if you don’t have any profit or cash flow coming through then your valuation is going to deteriorate very rapidly,” she told Switzer TV Investing.

“So it is important to back those more mature companies… that do have a stable growth outlook as well as profit coming in through the door.” 

As such, Lee named 3 ASX shares that currently fit these criteria:

3 mature companies with a stable outlook 

Lee said that the technology sector has “some interesting companies” worth consideration.

“Block Inc CDI (ASX: SQ2)… probably has a valuation north of about $200 and it’s trading at about $180,” she said.

“Altium Limited (ASX: ALU), there’s some strong momentum coming into its business… And Xero Limited (ASX: XRO) has been smashed in the year-to-date.”

The common attribute with this trio, according to Lee, is that they have been reporting good numbers. So the current dip in market valuation is a severe mismatch.

“The share price action has been horrible in 2022 so far,” she said.

“But if you have a look at the fundamentals, there are some companies that have exceeded expectations and are showing strong signs of momentum.”

Lee thought Australian investors might have a false impression of Block because of its association with Afterpay.

“But really, it’s a payments company. So it is exposed to small and medium enterprises. It also helps get websites off the ground.”

The US company announced “quite a good earnings result”, she added.

“The fundamentals and the technicals have been saying something different. But now we’re seeing the share price playing a bit of catch up.”

Right on cue, Block shares spiked up a massive 5.17% on the NASDAQ and 7.49% on the ASX on Wednesday.

The post 3 beaten-down technology ASX shares to buy right now: expert appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX growth shares to buy
• Is the Xero (ASX:XRO) share price on the way back up to its January highs?
• Why is the Block (ASX:SQ2) share price going gangbusters today?
• Why Block, Calix, Carnarvon, and Imugene shares are racing higher
• Leading the pack! ASX tech shares storm higher on Wednesday

Motley Fool contributor Tony Yoo owns Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Block, Inc., and Xero. The Motley Fool Australia owns and has recommended Block, Inc. and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/qEDoi04

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 attractive yields in the near term. Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

The first dividend share to look at is National Storage. It is a leading self-storage operator with a portfolio of over 200 centres. From these centres, the company provides tailored storage solutions to around 100,000 residential and commercial customers.

The good news is that management still sees plenty of room to grow its storage network in the future. It notes that the self storage industry remains highly fragmented, giving it plenty of high-quality acquisition opportunities. This bodes well for its income and distribution growth over the long term.

As for now, in FY 2022, management is guiding to ~10% underlying earnings per share growth. If it grows its distribution in line with its earnings, it would mean a distribution of 9.02 cents per share. Based on the current National Storage share price of $2.67, this would equate to a yield of 3.4%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share for income investors to look at is this agricultural focused real estate investment trust (REIT).

Rural Funds has a high quality portfolio of assets across a range of agricultural industries. These include almond and macadamia orchards, premium vineyards, water entitlements, cropping and cattle farms.

These properties are leased on long term agreements to major players in the industry such as Australia’s largest meat processor, JBS Australia, wine giant Treasury Wine Estates Ltd (ASX: TWE), and leading almond producer Select Harvests Limited (ASX: SHV). Combined with built in periodic rental rental increases, this provides Rural Funds with great visibility on its future earnings.

In FY 2022, the company intends to increase its dividend by its annual target rate of 4% to 11.73 cents per share. Based on the current Rural Funds share price of $2.96, this represents a yield of 4%.

The post Here are 2 ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with attractive yields
• These defensive ASX dividend shares keep giving investors a payrise
• Are these 2 top ASX dividend shares buys in March 2022?
• Will ASX REITs get smashed by rising interest rates?
• 2 top ASX dividend shares with 4%+ yields

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/SdNrtc5

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had another good day and charged higher. The benchmark index rose 0.5% to 7,377.9 points.

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

ASX 200 expected to fall

The Australian share market looks set to give back its gains on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.6% lower this morning. In late trade on Wall Street, the Dow Jones is down 1%, the S&P 500 is down 0.9%, and the Nasdaq has tumbled 1%.

Brickworks half year results

The Brickworks Limited (ASX: BKW) share price will be in focus today when the building products company releases its half year results. According to a recent note out of Citi, its analysts are expecting Brickworks to report underlying earnings before interest and tax (EBIT) of $321 million. Looking ahead, the broker suspects the company will outperform expectations for the full year thanks partly to profits from its investment in New Hope Corporation Limited (ASX: NHC).

Oil prices jump

It could be a good day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 5% to US$114.78 a barrel and the Brent crude oil price is up 5.3% to US$121.61 a barrel. Disruption to the Caspian pipeline has caused more supply concerns.

Uniti bidding war?

The Uniti Group Ltd (ASX: UWL) share price is likely to return from a trading halt this morning. The telco’s shares surged higher on Wednesday afternoon before being halted. This was amid speculation, which has yet to be confirmed, that Macquarie Group Ltd (ASX: MQG) is making a competing $5.00 per share takeover offer. This follows the receipt of a $4.50 cash per share from Morrison & Co last week.

Gold price rises

It could be a good day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price stormed higher. According to CNBC, the spot gold price is up 0.95% to US$1,939.4 an ounce. Concerns over the Ukraine crisis and inflation boosted the safe haven asset.

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

More reading

• Uniti (ASX: UWL) share price surges 11% to record high as Macquarie bid appears confirmed
• 3 ASX All Ordinaries shares smashing 52-week highs on Wednesday
• NAB, ANZ and CBA shares in focus as top broker tips extra $5b share buyback
• 2 ASX dividend shares for long-term income potential: Experts
• Here are the 3 most heavily traded ASX 200 shares this Wednesday

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 Brickworks. The Motley Fool Australia owns and has recommended Brickworks. The Motley Fool Australia has recommended Macquarie Group Limited and Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/lN1Jtr9

Fortunately for growth investors, there are plenty of shares on the Australian share market with strong long term growth potential.

Two such shares are named below. Here’s why analysts are positive on them:

NEXTDC Ltd (ASX: NXT)

The first growth share that could be a buy is NEXTDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud. Particularly given its world class network of centres and expansion into edge centres (regional data centres) and the Asia market. The latter has seen the company open up offices in Singapore and Tokyo. These markets could provide NEXTDC with a long growth runway.

Citi is a fan and currently has a buy rating and $14.55 price target on NEXTDC’s shares.

Xero Limited (ASX: XRO)

Another ASX growth to look at is this cloud-based accounting solution provider to small and medium sized businesses. Xero has been growing at a quick rate in recent years and has continued this trend in FY 2022. During the first half, it reported a 23% increase in subscribers to 3 million and a 29% lift in annualised monthly recurring revenue (AMRR) to NZ$1,132 million. Positively, Xero’s subscriber numbers are still well short of its total addressable market of 45 million. This and its plan to monetise its growing user base give it a very long growth runway.

Goldman Sachs is bullish on Xero. Its analysts currently have a buy rating and $135.00 price target on its shares.

The post Analysts name 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

More reading

• Is the Xero (ASX:XRO) share price on the way back up to its January highs?
• 2 fantastic ASX tech shares analysts rate as buys
• 3 growth shares analysts are tipping to rocket higher
• Are these 2 ASX tech shares excellent buys right now?
• Brokers name 2 excellent ASX shares to buy and hold

Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/X4SND9p

The Pilbara Minerals Ltd (ASX: PLS) share price increased by almost 4% today. The gain means that shares in the lithium miner have gone up by more than 20% since 15 March 2022.

The Pilbara Minerals share price has seen a lot of volatility since the start of 2022. It’s only down by 12% in the 2022 calendar year right now. However, it was down 33% from the 2022 high in January to the mid-March low.

While Tesla Inc (NASDAQ: TSLA) and Pilbara Minerals are different businesses, it may be worth noting the electric vehicle maker has also seen a very sharp recovery of its share price in the last week or so. Since 14 March 2022, the Tesla share price has climbed by around 30%.

What’s going on with the Pilbara Minerals share price?

There hasn’t been any official news out of the company since it released its FY22 half-year result a month ago.

However, lithium prices have been climbing this year.

Pilbara Minerals said that since the end of its half-year, pricing has continued to increase, with price reporting agencies indicating spot spodumene concentrate (lithium) prices in the range of US$3,750 to US$4,500 per dry metric tonne.

In the half-year period, Pilbara Minerals achieved an average selling price of around US$1,250 per dry metric tonne, so there has been a substantial increase.

The broker Macquarie thinks there’s more upside to the Pilbara Minerals share price, with a price target of $3.50 and a buy rating. That implies an upside of more than 10%. Macquarie thought the impending loss of Pilbara Minerals CEO Ken Brinsden was a negative, but the high lithium price is helpful to the thesis.

The post Full charge ahead: The Pilbara Minerals (ASX:PLS) share price lifts another 4% today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Elon Musk wants Tesla to be much, much bigger
• Why Tesla shares are up ahead of ‘Delivery day’
• The Pilbara Minerals (ASX:PLS) share price has leapt 12% in 4 days. What’s happening?
• These ASX 200 shares are topping the volume charts on Friday

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 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.

from The Motley Fool Australia https://ift.tt/uMCcK1d