Key points

• Crypto startups racked up a total of US$25 billion in funding last year
• January saw a continuation in access to capital for crypto companies with FTX and Fireblocks gaining US$1.35 billion
• One insider expects more to come as the industry matures

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Even as cryptocurrency prices take a nosedive, cryptocurrency startups are raking in cash.

In fact, they raised a record $25 billion in 2021. This is an eightfold increase from the previous year.

While some investors may be growing wary of the collapse in cryptocurrency valuations, it doesn’t seem to be putting a damper on investment in crypto and blockchain startups.

Taking the picks and shovels approach to cryptocurrency

January was another unkind month for crypto investors, following a trend that began in November last year. During the month, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) tumbled a further 17% and 29% respectively.

Yet, some private companies operating in the crypto-sphere have been going from strength to strength. In doing so, raising mindboggling amounts of money to fuel more growth.

Crypto derivatives exchange provider, FTX closed another round of funding in January amounting to US$800 million, ballooning its valuation to US$40 billion. The additional injection of funds was backed by Temasak, Paradigm, the Ontario Teachers’ Pension Plan Board, and NEA.

In another example of crypto companies raising funds despite the weakness in cryptocurrency prices, digital asset custody start-up Fireblocks scored $550 million in funding. The series E funding pushed the company to a sizeable US$8 billion valuation.

The institutional interest in these types of private companies in the crypto space exhibits a more ‘picks and shovels’ approach to the volatile industry. To a degree, these companies offer a ‘safer’ entrance into the growing cryptocurrency market.

US-based crypto exchange, Coinbase Global Inc (NASDAQ: COIN) is an example of this more traditional play. Irrespective of digital asset prices, the company continues to pull in revenue from people using its exchange.

In addition, Coinbase earns a small fee on crypto-assets in its custody. This was last reported to be more than 50% of the US$90 billion on its books.

What is driving this trend?

One would suspect that crypto companies would come under pressure as cryptocurrencies begin to falter. Especially when some spectators are anticipating the dawn of a ‘crypto winter‘.

So, what could be enticing sophisticated investors and institutions to keep pouring capital into these companies? Well, according to Fireblocks co-founder and CEO Michael Shaulov, part of the reason is maturing of the space.

Shaulov said:

What is very clear to us is that the investment in the infrastructure is not going to stop.

Further to this, the fast-growing crypto company co-founder highlighted more sophisticated uses of cryptocurrency. The potential posed by stablecoins and blockchain-based securities is attracting attention beyond speculation.

The post Cryptocurrency crash fails to put a dampener on cash-raising fiesta appeared first on The Motley Fool Australia.

More reading

• Is Bitcoin using lots of energy actually a good thing?
• Bitcoin price slides again. Here’s what crypto investors are watching
• Why these five cryptos could leave Bitcoin in the dust in 2022
• What are Stablecoins and how do they differ from other cryptocurrencies?
• Here’s why the leading cryptocurrencies are ticking higher

Motley Fool contributor Mitchell Lawler owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns Bitcoin and Ethereum. The Motley Fool Australia owns Bitcoin and Ethereum. 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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Key points

• The Liontown share price is up 5% today
• The company has raised $12.9 million from its share purchase plan
• This comes after it recently completed a $450 million institutional placement.

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The Liontown Resources Limited (ASX: LTR) share price is leaping today.

This comes after the battery metals explorer revealed after the market closed yesterday that it had completed its share purchase plan (SPP). The SSP was first announced at the start of December.

Currently, the Liontown share price is up 5.45 % at $1.45.

Let’s take a look at the news out of Liontown.

What’s pushing up the Liontown share price?

Liontown’s SPP has closed with subscriptions from eligible shareholders totalling $12.9 million. The explorer initially aimed to raise up to $40 million (before costs).

In the placement, shareholders were given the opportunity to apply for up to $30,000 worth of Liontown ordinary shares. This was under the same price and conditions as the explorer’s recently completed placement of $450 million at $1.65 a share, without paying any brokerage costs, commission, or other transaction costs.

Some 7,819,543 new shares were issued today and are expected to be quoted on Monday. However, shareholders were encouraged to confirm actual holdings prior to engaging in the new shares.

In its recent quarterly activities report, the company advised the $450 million placement had received “strong demand” from “high-quality domestic and offshore institutions”. These funds have allowed the explorer to de-risk and further develop its Kathleen Valley site in Western Australia.

Comment from management

Speaking on the announcement likely pushing up the Liontown share price today, managing director and CEO Tony Ottaviano said:

On behalf of the Board, I would like to thank shareholders for the strong support they have shown through the SPP during what has been a very volatile period in global markets since the start of the year.

The funds raised under the SPP together with the proceeds of the A$450 million institutional placement completed in December have significantly de-risked our development pathway and put Liontown firmly on track to achieve its objective of becoming a world-class battery materials company.

Liontown share price snapshot

Over the last 12 months, the Liontown share price has increased by around 253%. It has also seen a 51% increase in the last six 6 months.

During the past year, it reached its highest price of $1.94 in November and its lowest of 40 cents almost a year ago.

The explorer has a market capitalisation of $3 billion and 2.18 billion shares issued.

The post ‘Strong support’: Here’s why the Liontown (ASX:LTR) share price is pouncing higher today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Monday
• 2 ASX lithium shares analysts rate as buys
• Why Liontown (ASX:LTR) could be a lithium share to buy in 2022
• Liontown (ASX:LTR) share price leaps again as boss dismisses lithium supply glut concerns
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Alice de Bruin 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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Key Points

• Webjet shares 10% higher over the past week due to falling COVID-19 numbers and potential re-opening of Australia
• Webjet taking advantage of its opportunities and gearing up for the resumption of travel
• FY22 results expected to be released in late May 2022

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The Webjet Limited (ASX: WEB) share price has rebounded strongly since last Friday to post a gain of 11.06%.

This follows the S&P/ASX 200 Index (ASX: XJO) which rallied 3.38% after investors shrugged off concern about interest rate rises.

At the time of writing, the online travel agent’s shares are flat at $5.12 apiece.

What’s driving Webjet shares higher?

As COVID-19 continues to decline across the country, Webjet is gearing up for the potential international re-opening in April.

Although Western Australia’s borders are indefinitely shut for now, it appears investors are looking at the bigger picture.

Last week, Australian prime minister Scott Morrison indicated that international tourists should be able to visit by Easter.

With the world moving on and beginning to accept living with the virus, normality may not be far away for Australians.

This will be particularly pleasing for Webjet as it has been taking advantage of its opportunities.

In its FY22 first-half results, the company noted that competition has decreased due to financial pressures impacting the travel industry.

As such, management highlighted that the WebBeds business is poised to deliver significant revenue growth.

In particular, Webjet has focused on expanding its domestic offering, with increased penetration into the North American B2B market. This segment is the company’s second biggest market, behind the Asia Pacific region in terms of booking numbers.

Even with Western Australia closed for now, Webjet will be churning profit due to its geographical spread. The state does play an important role but is not vital in terms of the company’s operations.

Webjet also boosted and optimised its API (application programming interface) connections for key business to consumer (B2C) clients. It stated that the financial strength of the company makes it a trusted partner for hotel suppliers.

Looking ahead, Webjet is scheduled to report its FY22 results towards the backend of May 2022.

Webjet share price summary

It’s been a rollercoaster of 12 months for Webjet investors, with its shares up 2% over the period. Year to date, Webjet shares are down almost 1%.

Based on valuation grounds, Webjet has a market capitalisation of around $1.95 billion, with approximately 380.51 million shares on issue.

The post Here’s why the Webjet (ASX:WEB) share price is up 10% in a week appeared first on The Motley Fool Australia.

More reading

• Are ASX travel shares finally emerging from the COVID storm?
• Could the Webjet (ASX:WEB) share price be about to get a boost?
• These are the 10 most shorted ASX shares
• Is February 2022 the time to buy these 2 beaten-up ASX shares?
• Are Virgin Australia shares set to rejoin the ASX soon?

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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,074.5 points.

Four ASX shares that are falling more than most are listed below. Here’s why they are dropping:

Boral Limited (ASX: BLD)

The Boral share price is down 42% to $3.78. The good news is that nothing bad has happened and this decline relates to Boral returning a total of $3 billion to shareholders following a series of asset sales. Today the building materials company’s shares are trading ex-capital return. Eligible shareholders can now look forward to receiving a total cash distribution of $2.72 per share. This comprises a $2.65 per share capital reduction and an unfranked dividend of 7 cents per share.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down over 1% to $18.25. This may relate to a broker note out of UBS this morning. According to the note, the broker has retained its sell rating and $17.00 price target on the fund manager’s shares. It isn’t feeling confident about Magellan’s fees and flows outlook.

REA Group Limited (ASX: REA)

The REA share price is down 2% to $141.36. This is despite the release of first half results that came in ahead of the market’s expectations. The property listings company delivered revenue growth of 37% to $590 million and EBITDA growth of 27% to $368 million. The latter was ahead of the market consensus estimate of ~$350 million. REA also revealed that January had started strongly.

SEEK Limited (ASX: SEK)

The SEEK share price is down 4.5% to $28.14. This may have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has retained its sell rating and cut its price target on the job listings company’s shares by 15% to $27.30. This follows a review of its valuation of the Seek Growth Fund business following industry feedback which suggests valuation pressure on venture capital assets.

The post Why Boral, Magellan, REA, and SEEK shares are falling today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• Did the Boral (ASX:BLD) share price really just collapse 40%?
• REA (ASX:REA) share price higher after smashing first half expectations
• 5 things to watch on the ASX 200 on Friday
• Why Amcor, Boral, Nufarm, and Westpac shares are rising today

Motley Fool contributor James Mickleboro owns SEEK 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 REA Group Limited and SEEK 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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Shares in language technology data and services provider Appen Ltd (ASX: APX) are finding range today and are currently trading less than 1% higher at $9.48 apiece.

The Appen share price started the day well after spiking hard immediately from the open, and has since traded in an intraday range of $9.35–$9.68.

However, zooming out, shares are down 15% since January 1 and have faltered almost 58% in the last 12 months of trading, especially as ASX tech shares have taken a beating in 2022.

RBC Capital Markets is cautious on Appen

Following the earnings release of global tech juggernaut Meta Platforms Inc (NASDAQ: FB) – formerly Facebook – on Wednesday, global tech indices are now showing more signs of jitteriness.

The S&P/ASX All Technology Index (XTX) fell 112 points the day after Meta’s earnings release for instance, with many ASX tech names involved with the tech giant hit hard across the board.

Not to mention that ASX tech names have already taken a beating in 2022 as some experts predict the speculative tech bubble may finally be popping.

The outcome from Meta’s earnings results could be an ongoing problem for the Appen share price, according to the team at RBC Capital Markets.

Analysts at the firm dug into Meta’s weaker than expected financials after it reported earnings, and Meta’s weak earnings could spell trouble for Appen going forwards.

The broker notes that Meta is finding that navigating its ad-targeting landscape is far more difficult, now that devices have enabled a feature to turn off data tracking – a key issue for Appen, which specialises in data annotation.

What’s more, is that Appen’s sales revenue is heavily exposed to advertisers such as Meta. RBC alludes to this in its note, correctly stating that Appen’s “AI-powered search relevance” – that sources and prepares data for tech and advertising companies like Meta – accounts for over 80% of domestic revenue.

Given the threat to Meta’s advertising business now that device users have optionality on who tracks their data, this could bode in poorly for Appen’s earnings, and consequently its share price, RBC says.

Even though the stock is trading around its single-year lows, the broker hadn’t much to say about its growth prospects and retained its neutral rating with an $11 price target.

According to a list of analysts provided by Bloomberg Intelligence, the consensus price target on Appen’s share price is $12.97. Although, it is yet to be seen what other brokers will have to say regarding Meta’s earnings result and Appen’s outlook.

Appen shares have tanked 15% in the last month after a fairly horrendous start to the year. Still, even amidst the weakness, shares have regained support this week and are up 8% in that time.

The post Why is Meta’s earnings miss bad news for the Appen (ASX:APX) share price? appeared first on The Motley Fool Australia.

More reading

• Why did ASX 200 tech shares get annihilated today?
• With Afterpay shares no longer listed, is WAAAX officially dead?
• ASX 200 (ASX:XJO) midday update: Westpac higher on Q1 update, tech shares sink
• Why is the Appen (ASX:APX) share price down 7% today?
• Why did these tech shares lead the ASX 200 today?

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. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen 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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Finding ASX shares that can offer both share price and dividend growth over a long period of time could be called the ‘Holy Grail’ of investing. Some investors invest purely for capital growth. Others are only in it for dividend income. But having both can be described as having your cake and eating it too. What more could one want?

But, unfortunately, these things are only obvious with the benefit of hindsight. But that’s not the end of the world. As we sometimes say here at the Fool, winners can keep on winning.

So here are 3 ASX shares that have given investors a healthy mixture of both over the past few years.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi has been one of the best ASX retail shares to have owned over the past 5 years. For one, the share price of this electronics and entertainment retailer has risen from under $22 back in July of 2017 to the $47.67 we see so far today. That’s more than a doubling. But what’s more is that JB Hi-Fi has also managed to jack up its dividends very quickly as well. This company paid out $1 in dividends per share in 2016. But 2021 saw the company dole out a total of $2.87 in fully franked dividends per share. On today’s pricing, that gives JB Hi-Fi a trailing yield of just over 6%.

Super Retail Group Ltd (ASX: SUL)

Another all-rounder, next up is Super Retail Group. This company is the name behind popular retail chains like Rebel Sport, Super Cheap Auto and BCF. Super Retail Group shares have been a decent performer over the past few years. They are now up more than 80% since the start of 2019. But this company has also delivered very healthy dividends to its investors. 2019 saw it pay out 50 cents per share in fully franked dividends. But last year saw investors receive 88 cents per share in dividends. That’s a long way from 2019’s levels, and even further from the 41.5 cents per share it doled out in 2016. On current pricing, Super Retail Group’s 2021 dividends give its shares a trailing yield of 7.3%

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts, as this company is more easily known as, is our final share to check out today. For starters, this company has the best dividend record on the ASX. Soul Patts has given its investors an annual dividend increase every single year since 2000. That 21-year streak and counting is unmatched by any other ASX share. Soul Patts is an investing conglomerate of sorts. It owns large chunks of other ASX companies, the most prominent of which include Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC).

But this company has been on a very pleasing share price run too. Even after falling more than 30% from its most recent all-time high of $40.80 over the past 5 or so months, Soul Patts remains up a healthy 71.5% over the past 5 years. On current pricing, it offers a fully franked dividend yield of 2.27%. 

The post Have your cake and eat it: These ASX shares have been paying regular dividends whilst growing their share prices appeared first on The Motley Fool Australia.

More reading

• Could this be the biggest issue faced by ASX retail shares heading into earnings season?
• 2 great value ASX dividend shares that brokers love
• Top ASX shares to buy in February 2022
• Are these 2 ASX dividend shares buys in February 2022?
• ASX shares set to conquer the carnage: expert

Motley Fool contributor Sebastian Bowen owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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 looking to take advantage of the recent weakness in the tech sector, then you may want to look at the three ASX tech shares listed below.

These shares have all been given buy ratings by the team at Goldman Sachs. Here’s why it rates them highly:

Nitro Software Ltd (ASX: NTO)

The first ASX tech share to look at is Nitro Software. It is aiming to drive digital transformation in organisations around the world with its Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

Goldman Sachs initiated coverage on the company this week with a buy rating and $2.95 price target. It commented: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

PointsBet Holdings Ltd (ASX: PBH)

Another tech share that Goldman is a fan of is PointsBet. It is a growing sports wagering operator and iGaming provider. PointsBet offers innovative sports and racing betting products and services via a scalable cloud-based platform. It currently operates in the ANZ and United States markets and has delivered significant growth in both. Positively, it is still only scratching at the surface of its massive opportunity in the lucrative US market.

Goldman Sachs currently has a buy rating and $9.97 price target on the company’s shares. It said: “Reiterate our Buy rating on PBH, with our thesis underpinned by PBH’s leverage to the burgeoning US Sports Betting and Gaming market which we forecast to be a ~US$60 bn TAM opportunity at maturity.”

Xero Limited (ASX: XRO)

A final ASX tech share that Goldman rates highly is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses. Xero has been growing strongly over the last few years and looks well-placed to continue this trend in the years to come. This is thanks to its international expansion, acquisitions, the transition to the cloud, and its app ecosystem. The latter has significant monetisation potential according to Goldman.

The broker has a buy rating and $158.00 price target on Xero’s shares. Its analysts believe the company is well-placed for strong growth. They are forecasting revenue of NZ$1,096 million in FY 2022 before growing to NZ$1,661 million by FY 2024.

The post 3 excellent ASX tech shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

More reading

• Why Carnaby Resources, News Corp, Piedmont Lithium, and PointsBet shares are pushing higher
• Land and expand: Why Motley Fool analyst Ryan Newman thinks Xero (ASX:XRO) shares can still touch the clouds
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• Here’s why the PointsBet (ASX:PBH) share price is charging higher today
• Should you buy ASX shares now or wait just a little bit?

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 Pointsbet Holdings Ltd and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Nitro Software Limited and Pointsbet 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.2% to 7,066.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Carnaby Resources Ltd (ASX: CNB)

The Carnaby Resources share price has rocketed 41% to $1.92. Investors have been buying the mineral exploration company’s shares after it reported a major copper gold discovery at its Nil Desperandum Prospect in Queensland. According to the release, a reverse circulation drill hole intersected a strong 50 metre down hole zone of copper sulphide mineralisation from 250 metres to bottom of hole. Based on visual estimates, the zone contains up to 30% chalcopyrite.

News Corp (ASX: NWS)

The News Corp share price is up 5.5% to $33.29. Investors have been buying the media giant’s shares following the release of its second quarter and half year update. For the second quarter, News Corp reported a 13% increase in revenue and an 18% lift in EBITDA. This led to a first half operating profit of almost US$1 billion, which is up 30% year on year.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price is up 2.5% to 67 cents. This follows the release of an update on its 2022 lithium development plans. Piedmont revealed that it expects to double its US lithium hydroxide production to 60,000 tonnes per year. All in all, it ultimately plans to produce or have offtake rights to an estimated 500,000 tonnes per year of SC6 production.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is up 2.5% to $5.04 following an update on its North American operations. That update reveals that its PointsBet Canada business has officially been approved by the Alcohol and Gaming Commission of Ontario as a licensed sportsbook in Ontario. This license will become effective on 4 April 2022. Ontario is home to Canada’s capital, Ottawa, and has a population of over 14.8 million people and a host of professional sports teams.

The post Why Carnaby Resources, News Corp, Piedmont Lithium, and PointsBet shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX tech shares Goldman Sachs rates as buys
• Read all about it: News Corp (ASX:NWS) share price leaps on record quarter
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• Boom! Carnaby Resources (ASX:CNB) share price rockets 33% on ‘major discovery’
• Here’s why the PointsBet (ASX:PBH) share price is charging higher today

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet 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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Key Points

• Flight Centre shares backtrack despite COVID-19 cases beginning to dwindle
• CEO calls for clearer visibility for the return of tourists to Australia
• FY22 half-year results expected to be released on 24 February

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The Flight Centre Travel Group Ltd (ASX: FLT) share price has staged a mini rebound in the past week. This comes as the number of COVID-19 cases around the country begins to finally subside.

At the time of writing, the travel agent’s shares are down by 1.45% to $17.30. Although treading lower today, it’s worth noting that its shares have advanced by more than 11% in the past week.

What did the Flight CEO say?

Following the latest news that the Australian Technical Advisory Group on Immunisation (ATAGI) is looking into re-defining the term “fully vaccinated”, Flight Centre boss, Graham Turner weighed in on the agenda.

Mr Turner said that clearer visibility is needed for the tourism sector.

This comes as Federal Health Minister Greg Hunt advised that being fully vaccinated will most likely require three COVID-19 shots.

“I think having the booster shots is important but I don’t think we can keep changing these definitions all the time, particularly for people who are travelling, particularly international travellers” commented Mr Turner.

” I think we’ve just got to get back to living with the virus and accepting that fully vaccinated with double shots initially and in the long-term perhaps change that.

“I think it’s a real blow if they do this to the tourism industry and the travel industry, of course”.

While Australia is slowly starting to re-open up to the rest of the world, tourists are still barred from entering the country. This also applies to foreign business people who don’t have an exemption or visa.

It’s evident that without the resumption of travel, Flight Centre will be battling to achieve strong financial numbers for FY22.

All eyes will be on Flight Centre’s FY22 half-year results which are expected to be released on 24 February 2022.

Flight Centre share price recap

Up until late August, Flight Centre shares were trading mostly sideways. However, during the company’s full-year results release, its shares skyrocketed almost 60% in just 5 weeks.

Since after hitting a 52-week high of $25.28 in early October, the Flight Centre share price has continued to travel lower.

Based on today’s price, Flight Centre commands a market capitalisation of roughly $3.45 billion.

The post ‘It’s a real blow’: Flight Centre (ASX:FLT) CEO weighs in on government’s latest vax plans appeared first on The Motley Fool Australia.

More reading

• Are ASX travel shares finally emerging from the COVID storm?
• Why has ASX travel share Flight Centre (ASX:FLT) lifted 10% in a week?
• These are the 10 most shorted ASX shares
• Are Virgin Australia shares set to rejoin the ASX soon?
• When will Flight Centre (ASX:FLT) pay a dividend again?

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 Flight Centre Travel Group 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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Key points

• Analysts really like these two ASX shares, with multiple buy ratings
• Healthco Health is a property business which owns a portfolio of healthcare and social real estate
• Corporate Travel is one of the world-leading business travel businesses

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There are some very compelling ASX shares that many of Australia’s leading analysts rate as a buy right now.

Different businesses look good value at different prices depending on their size and growth outlooks.

However, if many of these brokers all believe that a company is priced attractively then it could be worth considering.

Healthco Healthcare and Wellness Reit (ASX: HCW)

This is a real estate investment trust (REIT) which owns a portfolio of properties across aged care, childcare, government, life sciences and research, and primary care and wellness. The idea is to have a portfolio that is underpinned by attractive megatrends, targeting stable and growing distributions, long-term capital growth and positive overall environmental and social impact.

It’s currently rated as a buy by at least three different brokers, including Macquarie which has a price target of $2.52 on the business – that’s more than 20% higher than today’s level. The broker reckons investors will choose to go to defensive investments in 2022.

The ASX share is expecting to pay a FY22 distribution per unit of 7.4 cents. That translates to a distribution yield of 3.7%.

In October, it pointed out that it has pro forma gearing of just 11.5%, providing financial capacity for acquisitions. That October update included an announcement regarding $200 million of high-quality healthcare acquisitions, with a weighted average capitalisation rate (WACR) of 5.02% and a weighted average lease expiry (WALE) of 17.3 years.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the world’s largest business travel businesses.

It’s currently rated as a buy by at least six brokers including Macquarie and Morgans. The Morgans price target is $29, which implies a possible rise of the Corporate Travel share price of around 40% over the next 12 months.

Morgans reckons that travel volumes will return as the impacts and concerns regarding Omicron subside, as it did with previous COVID variants.

Whilst Macquarie recognises that the travel sector is being impacted by COVID, it thinks that Corporate Travel will be among the first to recover because of the ‘essential’ nature of business travel.

On Macquarie’s numbers, the Corporate Travel share price is valued at 21x FY23’s estimated earnings.

The last trading update that the market received was when the ASX share announced the acquisition of Helloworld Travel Ltd’s (ASX: HLO) corporate and entertainment travel business for $175 million on a cash-free and debt-free basis.

As at 30 November 2021, Corporate Travel had maintained positive monthly earnings before interest, tax, depreciation and amortisation (EBITDA) during the second quarter of FY22. However, it did note that momentum was impacted by the Omicron variant.

However, it said that when combined with the Travel & Transport acquisition, it will be a materially larger business after a full travel market recovery, with pro forma combined revenue of $810 million and EBITDA of $265 million.

The post 2 ASX shares that top analysts are loving right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management 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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