Key points

• Bigtincan Holdings is set to report its quarterly earnings for the period ending 31 December 2021 on 24 January.
• The company reported a 48% increase in annualised recurring revenue (ARR) to $53.1 million in FY1.
• The consensus of analyst estimates has Bigtincan to report around $54 million in revenue for 1H FY22.
• Shares have fallen more than 8% since January 1.

---

All eyes will be on the Bigtincan Holdings Ltd (ASX: BTH) share price on 24 January when it releases its quarterly report to investors.

The ‘sales enablement platform provider’ confirmed it will provide an overview of quarterly activities and cash flows for the period ending 31 December 2021 near the month’s end in an announcement today.

Specifically, the webinar will be hosted via Zoom at 11.00 am (AEDT) on 24 January 2022, per the release.

What can we expect from Bigtincan in its quarterly update?

Even though it was a robust performance from Bigtincan in 2021, including a 218% increase in cash receipts in October, this didn’t inflect positively on its share price – particularly in the back end of the year.

Shares ran down from a 52-week high of $1.47 in August and haven’t slowed down since, having closed less than 1% in the green yesterday at 93 cents.

During its last quarterly update, the company grew total customer cash receipts by 218% to $14.4 million year over year (YoY).

Cash operating payments were also up 67% to $19.3 million YoY whereas it reported a 48% increase in annualised recurring revenue (ARR) to $53.1 million in FY21.

Probably the most interesting component of Bigtincan’s upcoming earnings release – especially for those investors familiar with the Bigtincan growth narrative to date – is commentary on how the Brainshark acquisition has synergised since completion.

Management had forecasted a 124% accretion to recurring income from the combined sources and estimate $119 million in ARR for FY22 following the acquisition.

Morgan Stanley notes these elements in their valuation of the company. The broker is constructive on Bigtincan and reckons it’s a buy right now, valuing the tech player at $2.10 per share.

With that kind of upside margin, the broker has big expectations for Bigtincan these coming 12-24 months.

The consensus of analyst estimates also has Bigtincan to report around $54 million in revenue for 1H FY22 and $58 million for the second half.

This is expected to carry through to gross profit of $45.6 million, which is a substantial jump of 116% on the last half, according to this consensus view. We will see how on track Bigtincan is in hitting these targets later this month.

For those investors interested in attending Bigtincan’s quarterly report investor webinar, one can register their interest by clicking here and following the prompts to register interest.

Bigtincan share price summary

In the last 12 months, the Bigtincan share price has swung from its 52-week highs in August and is now down 10.5% for the year.

The trend has spilled over into the new year and shares have fallen more than 8% since January 1, after collapsing a further 3% in the previous week of trading.

As such, Bigtincan is now trading at its May 2021 levels after consolidating more than 36% in the last 4 months.

The post Earnings preview: What to expect from Bigtincan (ASX:BTH) this reporting season appeared first on The Motley Fool Australia.

More reading

• 3 exciting ASX growth shares with major upside potential in 2022
• Experts tip the ASX sectors that are set to outperform in 2022
• 3 small cap ASX shares to watch in 2022

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 BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN 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/3fKyQKY

Key points

• BHP shareholders have voted overwhelmingly in favour of its unification
• Unification expected to complete at the end of the month
• BHP has been tipped to make new acquisitions post-unification

---

The BHP Group Ltd (ASX: BHP) share price is falling on Friday morning.

At the time of writing, the mining giant’s shares are down 2.5% to $46.85.

What’s going on with the BHP share price?

The BHP share price is falling today despite announcing the completion of the shareholder vote on its unification.

According to the release, BHP shareholders have approved each of the unification resolutions at the BHP Group Limited General Meeting, the BHP Group Plc Scheme Meeting, and the BHP Group Plc General Meeting.

Despite a bit of push back from a small group of investors prior to the vote, shareholders were overwhelmingly in favour of the plans. So much so, approximately 96% to 97% of the votes were in favour of each of the resolutions.

What now?

With the shareholder vote out of the way, arguably the biggest hurdle has now been surmounted.

BHP will now seek approval from the UK courts. A Court Sanction Hearing is expected to take place on 25 January 2022.

After which, if everything goes to plan, the Big Australian expects the unification to complete on 31 January. This will mean its UK listed shares stop trading at the close of play next Friday on 28 January.

What next?

Once the unification is complete, a number of analysts believe BHP will commence an aggressive merger and acquisition (M&A) strategy.

The team at Morgans expect this to be the case. They have suggested that base metal operations outside Australia could be a target.

Yesterday, the broker said: “Post unification and divestments, we expect BHP to get active on the M&A hunt for larger acquisitions after simplifying its business and freeing up considerable capital resources and management capacity. If we had to guess, we would expect base metal acquisitions outside Australia as the most likely to hold some appeal (we also do not expect it to be in Africa which BHP exited when it spun off South32 in 2015). While not the bottom of the cycle by any means, we see it as the next logical step in BHP’s evolution consistent with its overarching strategy.”

Morgans has an add rating and $48.60 price target on the company’s shares. This suggests only modest upside for the BHP share price from current levels.

The post BHP (ASX:BHP) shareholders approve unification: What’s next for the mining giant? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why were Rio Tinto (ASX:RIO) and BHP (ASX:BHP) shares in the green today?
• ASX 200 (ASX:XJO) midday update: BHP’s update, Megaport sinks, HUB24 impresses
• BHP (ASX:BHP) share price on watch following second quarter update
• 2 high yield ASX dividend shares named as buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/34Zuk96

Key points

• Rio Tinto is building its exposure to lithium. Can it help the Rio Tinto share price?
• Rincon is a large undeveloped lithium brine project in Argentina
• Jadar is one of the world’s biggest greenfield projects, based in Europe

---

The Rio Tinto Limited (ASX: RIO) share price has jumped 25% over the last two months amid a partial recovery of the iron ore price.

The mining giant pointed out that China is transitioning from tightening to easing policies after a slowdown in the last quarter of 2021, with mild pro-growth measures in place to support property, infrastructure and consumption. Rio Tinto expects China to continue to finetune its policies to balance multiple priorities.

Right now, iron ore makes up a large percentage of Rio Tinto’s earnings. However, can lithium play a bigger part in the company’s future?

Lithium plans

The mining giant is working on growing its exposure to lithium.

Rio Tinto acknowledges that the market fundamentals for battery grade lithium carbonate are strong, with lithium demand forecast to grow between 25% to 35% per annum over the next decade with a significant supply demand deficit expected from the second half of this decade.

Its latest move was announced in December. It has entered into a binding agreement to buy the Rincon lithium project in Argentina for $825 million.

Rincon is one of the largest undeveloped lithium brine projects in the world, located in the heart of the lithium triangle of Salta Province. Rio Tinto noted that the project will have a long life, capable of producing battery grade lithium carbonate. It has the potential to have one of the lowest carbon footprints in the industry.

Lithium carbonate is an important material used in large scale batteries for electric vehicles and storing renewable energy. Lithium could be helpful in the long-term for the Rio Tinto share price. Huge demand for lithium has already sent the lithium price soaring in 2021.

Work is going to be undertaken to determine the development strategy and timing, as well as go through a number of other steps needed to make progress on the Argentine project. This transaction is expected to be completed in the first half of 2022.

Jadar

Rincon is not the only lithium project that Rio Tinto is working on.

The Jadar project in Serbia is one of the world’s largest greenfield lithium projects. Jadar is a lithium-borates project. This project will produce battery grade lithium carbonate.

Rio Tinto has explained that this project could be particularly important for the European lithium market. It could position the ASX miner as the largest source of lithium supply in Europe for at least the next 15 years. It could supply enough lithium to power over one million electric vehicles per year.

On top of lithium, Jadar will produce borates, which are used in solar panels and wind turbines.

The initial plan was to ramp-up to full production in 2029. The mine is expected to produce around 58,000 tonnes of lithium carbonate, 160,000 tonnes of boric acid and 255,000 tonnes of sodium sulphate annually. This would make Rio Tinto one of the top ten lithium producers in the world.

However, there has been a hitch for Rio Tinto. As acknowledged in July 2021, Jadar remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Serbian Government and civil society.

There have been protests in Serbia about the potential environmental impacts of Rio Tinto’s mining activities. This has caused delays to the approval of the ‘exploitation field licence’. First saleable production is now expected to be no earlier than 2027. It was previously 2026.

Analysts thoughts on the Rio Tinto share price

Brokers think that high lithium prices are going persist as demand outstrips supply.

Ord Minnett thinks that lithium could make up over 5% of Rio Tinto’s overall earnings by the end of the decade.

However, the iron ore price continues to be the biggest factor for the Rio Tinto share price. Ord Minnett currently rates Rio Tinto as a ‘hold’, but with a price target of $102.

UBS rates the Rio Tinto share price as a sell, with a price target of just $80 because of expectations that the iron ore price could drop.

The post Can lithium cause the Rio Tinto (ASX:RIO) share price to charge higher? appeared first on The Motley Fool Australia.

More reading

• Why were Rio Tinto (ASX:RIO) and BHP (ASX:BHP) shares in the green today?
• Top brokers name 3 ASX shares to sell today
• What are brokers saying about the Rio Tinto (ASX:RIO) 2022 production update?
• Why the Rio Tinto (ASX:RIO) share price will be in focus today
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3tQygnf

Key points

• Nuix has had a tough first half of FY 2022
• Revenue is expected to be down slightly year on year due to weakness in Europe
• Operating earnings have been smashed from higher costs

---

The Nuix Ltd (ASX: NXL) share price is under significant pressure again on Friday.

At the time of writing, the investigative analytics and intelligence software provider’s shares are down 11% to a new low of $1.83.

Why is the Nuix share price sinking again?

Investors have been selling down the Nuix share price this morning following the release of a trading update for the first half of FY 2022.

According to the release, Nuix is expecting to post a decline in revenue and operating earnings during the first half.

In respect to revenue, the company is guiding to revenue of $82 million to $85 million for the six months ended 31 December. This will be a 0.35% to 3.9% reduction on the $85.3 million recorded a year earlier.

This is expected to underpin annualised contract value (ACV) of $161 million to $164 million, compared to ACV of $161.8 million during the prior corresponding period.

Management advised that this reflects a stronger performance in North America and APAC which has been offset by a weaker performance in EMEA. And while its ACV is relatively flat, the company highlights that it continues to see a marked shift away from module-style licences to consumption licences.

Operating earnings more than halve

As for its earnings, Nuix expects to post pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $13 million to $15 million. This is down more than 50% from $31.6 million a year earlier. Finally, on the bottom line, Nuix is guiding to a net loss after tax of $2 million to $3.5 million.

Management advised that this earnings weakness has been driven by materially higher costs, such as non-operational legal costs. In addition, the company is reinvesting in sustainable revenue generation. This includes building sales and distribution capability and increasing levels of investment in the product development pipeline.

Following today’s decline, the Nuix share price is now down a massive 83% over the last 12 months.

The post Nuix (ASX:NXL) share price crashes 11% amid another disappointing update appeared first on The Motley Fool Australia.

More reading

• 5 worst ASX 200 tech shares of 2021
• Insiders have been buying Nuix (ASX:NXL) and this ASX share

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 Nuix Pty Ltd. 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/3rBNnOv

If you’re looking for some dividend shares to buy in January, then you may want to look at the ones listed below.

Here’s why analysts rate them as buys:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to consider buying is the Charter Hall Social Infrastructure REIT.

As its name implies, this property company has a focus on social infrastructure properties. These are properties such as government facilities, healthcare buildings, and childcare centres.

This is a great part of the market to be in, with these properties in high demand from end users. This underpinned 100% occupancy and a weighted average lease expiry (WALE) in excess of 15 years in FY 2021. And with approximately three-quarters of its tenancies on fixed rent reviews, the company’s future rental growth looks very positive.

Goldman Sachs is a fan of the Charter Hall Social Infrastructure REIT and has a conviction buy rating and $4.13 price target on its shares. In respect to dividends, Goldman is forecasting dividends per share of 17.1 cents in FY 2022 and 17.5 cents in FY 2023. Based on its current share price of $3.78, implies yields of 4.5% and 4.6%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be in the buy zone right now is NAB.

It has been tipped as a buy by the team at Bell Potter. It likes the bank due to its strong position in business and commercial banking, which gives some protection from the margin crushing competition for home loans.

The broker currently has a buy rating and $32.00 price target on the bank’s shares. Its analysts are forecasting further earnings growth from NAB in the coming years, underpinning increasing dividend payments.

For example, the broker has pencilled in dividends per share of 132.5 cents in FY 2022 and then 134.5 cents in FY 2023. Based on the current NAB share price of $28.70, this equates to fully franked yields of 4.6% and 4.7%, respectively.

The post 2 buy-rated ASX dividend shares with generous yields appeared first on The Motley Fool Australia.

More reading

• NAB (ASX:NAB) share price target raised at Morgan Stanley. So, is it a buy?
• Is the NAB (ASX:NAB) share price an undervalued smart buy for dividends?
• Is the NAB (ASX:NAB) share price an ASX buy or sell for 2022?
• Brokers name 2 ASX 200 dividend shares to buy
• Analysts name 2 ASX dividend shares to buy in January

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3GMG6BW

Due to recent weakness in the tech sector, a number of quality shares have pulled back materially from their highs. This has potentially created a buying opportunity for investors.

Two such shares are listed below. Here’s what you need to know about these buy-rated tech shares:

Nitro Software Ltd (ASX: NTO)

The first ASX tech share for investors look at is Nitro Software. It is the document productivity company behind the Nitro Productivity Suite. This suite provides integrated PDF productivity and eSignature tools to businesses great and small globally. This includes over two-thirds of the Fortune 500.

Bell Potter is bullish on Nitro Software. Particularly given the recent acquisition Connective NV for US$81 million, which the broker described as game-changing.

It commented: “The rationale for the acquisition is it will accelerate and enhance Nitro’s eSign, eID (electronic identity) and document workflow capabilities. It will also position Nitro to become the third global player in the enterprise eSign market along with DocuSign and Adobe.”

Bell Potter has a buy rating and $4.50 price target on the company’s shares. This suggest that the Nitro Software share price could double from the current level of $2.17.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX tech share that is rated highly is PointsBet. It is a growing sports betting operator and iGaming provider that offers innovative sports and racing betting products and services via a scalable cloud-based platform.

PointsBet currently operates in the ANZ and North American markets. The latter is being supported by its deal with US sports broadcaster NBCUniversal. This deal is putting the PointsBet brand in front of millions of sports fans across the United States, which is driving strong customer and revenue growth in the country.

And while its marketing spend has been greater than many were expecting due to fierce competition, Goldman Sachs believes it will bear fruit in the future.

It commented: “Overall we remain positive on PBH, with our thesis underpinned by i) PBH’s leverage to the burgeoning US Sports Betting and iGaming market, which we forecast to be a >US$50 bn TAM opportunity at maturity, ii) our view that PBH remains well-placed to capitalise given its in-house tech stack, iii) upside risk to long-run sustainable margins in Aus and the US, and iv) scalability benefits ahead from NBCUniversal leads and broader coverage from state roll outs.”

Goldman currently has a buy rating and $12.79 price target on the company’s shares. This implies 100% upside from the current PointsBet share price of $6.38.

The post 2 buy-rated ASX tech shares with 100% upside in 2022 appeared first on The Motley Fool Australia.

More reading

• Here’s why the PointsBet (ASX:PBH) share price stormed 5% higher today
• 2 beaten down ASX tech shares tipped as buys
• PointsBet (ASX:PBH) share price falls on mixed broker note
• 2 exciting small cap shares named as buys
• Why BrainChip, PointsBet, PolyNovo, and Syrah shares are pushing 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. owns and has recommended Pointsbet Holdings Ltd. 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.

from The Motley Fool Australia https://ift.tt/3AipNKq

Key points

• The two ASX dividend shares in this article are ones with long records of dividend growth
• Investment conglomerate Soul Pattinson has been increasing its dividend annually for more than two decades
• Gas infrastructure giant APA has been growing its distribution for many years and continues to invest for growth

---

Income-seeking investors may want to put some high-quality ASX dividend shares on the watchlist.

These are businesses with decent yields and long track records of dividend growth for investors. Recent share price declines may have made them more attractive.

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

Soul Pattinson is the business with the longest running dividend growth record. The annual dividend increases stretch back more than 20 years.

There are a few key positions that have generated a lot of growth and cashflow for the investment conglomerate. Those three key positions are TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW) and New Hope Corporation Limited (ASX: NHC).

However, it has a number of other assets and investments that are helping such as Round Oak, Tuas Ltd (ASX: TUA), Apex Healthcare and Pengana Capital Group Ltd (ASX: PCG).

Soul Pattinson continues to invest in new opportunities. Agriculture has been a recent focus of the investment team. The merger with the old listed investment company (LIC) Milton gives the portfolio more diversification and additional liquidity for future investments.

The ASX dividend share said that with its new large caps investments from Milton, it plans to partially sell them down over time to fund further investments in private markets, global equities, property, structure yield and ‘real assets’.

At the current Soul Pattinson share price, it has a trailing grossed-up dividend yield of 3.1%.

APA Group (ASX: APA)

APA is the owner of a very large amount of gas pipeline infrastructure across Australia. Its pipeline actually spans 15,000km. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA supplies half of the nation’s natural gas usage.

The ASX dividend share has been looking for acquisition opportunities in both Australia and the USA. It sees a number of growth areas with renewable energy generation, electricity transmission and hydrogen.

It has grown its distribution every year for a decade and a half. In FY22 it’s expecting to increase the distribution again by another 4% to 53 cents per unit. That translates to an expected forward distribution yield of 5.4%.

APA management says that its portfolio and organic growth pipeline gives it confidence about the capacity for growth. Its organic growth pipeline now exceeds $1.3 billion.

It has its first hydrogen project is underway which is targeted at enabling the conversion of a section of the Parmelia Gas Pipeline in Western Australia into Australia’s first 100% hydrogen-ready transmission pipeline. If successful, it would create a “significant opportunity” for the development of a hydrogen hub in the Kwinana Industrial precinct near Perth.

The post Dividend investors should put these 2 top ASX shares on the watchlist appeared first on The Motley Fool Australia.

More reading

• What kinds of dividends will APA Group (ASX:APA) pay out in 2022?
• 2 strong ASX shares profiting from the e-commerce boom
• 2 top ASX shares to buy according to WAM
• What happened to the Brickworks (ASX:BKW) share price 2021?
• These 2 ASX real estate shares could be the best way to invest in property

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended APA Group, Brickworks, 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.

from The Motley Fool Australia https://ift.tt/3IkIP5S

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 could be growth shares to buy:

Altium Limited (ASX: ALU)

The first growth share for investors to consider buying is Altium. It is an electronic design software provider behind the Altium 365 and Altium Designer platforms. These platforms are the leaders in their field and aiming to dominate their market. A testament to their quality is that they are used by companies such as Tesla, BAE Systems, Amazon, Facebook, and Dell.

This is a great market to lead. With the Internet of Things (IoT) and AI markets underpinning an explosion of electronic devices globally, demand for electronic design software is expected to continue to grow at a strong rate for a long time to come. This bodes well for Altium’s growth in the future.

The team at Jefferies is very positive on Altium. It currently has a buy rating and $48.83 price target on the company’s shares. This compares to the latest Altium share price of $39.09.

Life360 Inc (ASX: 360)

Another ASX growth share that could be in the buy zone is app maker Life360.

It operates in the digital consumer subscription services market with a focus on products and services for digitally native families. This is with its hugely popular Life360 app and recent acquisitions of items tracking company Tile and wearables company Jiobit.

The team at Bell Potter is very positive on the company. This is due to its Life360’s freemium model and its massive opportunity to convert its 30m+ user base into paying subscribers. The latter is expected to be boosted by the aforementioned acquisitions and value added services such as roadside assist.

Overall, the broker believes the company is well placed to disrupt the safety and security market and achieve strong top line growth for many years. As a result, its analysts have a buy rating and $15.00 price target on its shares. This compares very favourably to the latest Life360 share price of $8.53.

The post 2 explosive ASX growth shares analysts love right now appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 fantastic ASX shares to buy right now
• Here are 4 ASX shares insiders are putting their money behind
• Here are the tech shares leading the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• Why did the Altium (ASX:ALU) share price gain 33% in a year?

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium and 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.

from The Motley Fool Australia https://ift.tt/3qMo6Su

Key points

• The CSL share price has been falling in the last few weeks
• It recently announced the major acquisition of Vifor Pharma
• Brokers like the acquisition and currently rate the business as a buy

---

The CSL Limited (ASX: CSL) share price has been dropping recently. Over the last two months it has declined around 14%.

CSL isn’t exactly a household name. It’s a leading global biotech company. It develops and delivers innovative biotherapies and influenza vaccines that save lives, and help people with life-threatening medical conditions live full lives.

The business has delivered capital growth. Over the past five years the CSL share price has risen 140%.

But how does the next year or two look for the business?

What’s impacting the CSL share price?

Plenty of ASX growth shares have fallen in recent weeks, so it’s not just CSL. Names like Xero Limited (ASX: XRO) and Afterpay Ltd (ASX: APT) have both dropped more than 20% recently.

For CSL, the big news over the last month or so has been the proposed acquisition of Vifor Pharma for A$16.4 billion.

What does Vifor do? It has an “outstanding team and a leading portfolio of products” with renal disease and iron deficiency. CSL also said that Vifor has a proven strategy of partnering and business development and licensing.

This portfolio of products will complement CSL’s existing therapeutic focus areas including haematology, thrombosis, cardiovascular and transplant, with a high-quality pipeline.

But it’s not just about diversification. Management think that CSL can help grow the Vifor Pharma business. CSL’s global reach, R&D capabilities and resources will help the delivery of the Swiss company’s products to patients.

The offer has already been unanimously recommended by Vifor Pharma’s board of directors. Vifor Pharma’s largest shareholder, Patinex, also likes the offer.

In terms of adding to profit, CSL expects it will add low to mid-teens to underlying net profit after tax (NPATA) per share in the first full year of ownership, including the full run rate of cost synergies.

What do brokers think of the deal?

Morgans likes the deal and thinks it adds value to CSL, whilst giving adding defensive earnings with more growth avenues.

Citi also thinks that the Vifor Pharma acquisition increases the value of CSL.

After the announcement of the acquisition both of these brokers increased their price targets for CSL by more than $10 per share.

Morgans now has a price target of $334.70 on the CSL, which suggests upside of more than 20%. Meanwhile, Citi has a price target of $340 on the company, implying an increase of around 25%.

Profit expectations

When CSL announced the acquisition, it confirmed that its FY22 net profit after tax (NPAT) guidance was for an approximate range between US$2.15 billion to US$2.25 billion.

Citi’s projections put the CSL share price at 40x FY22’s estimated earnings and 31x FY23’s estimated earnings. The broker has a buy rating on the biotech business.

Morgans thinks that CSL shares are valued at 41x FY22’s estimated earnings and 35x FY23’s estimated earnings. It also rates the company as a buy.

The post Has the CSL (ASX:CSL) share price dropped back into the buy zone? appeared first on The Motley Fool Australia.

More reading

• 2 killer ASX shares to buy for a volatile 2022
• How is the CSL (ASX: CSL) share price performing in the age of Omicron?
• Leading fund manager says these blue-chip ASX shares are buys right now
• 2 outstanding ASX 200 shares to buy this month according to analysts
• Why did the CSL (ASX:CSL) share price have such a lousy year in 2021?

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 Afterpay Limited, CSL Ltd., and Xero. The Motley Fool Australia owns and has recommended Afterpay Limited 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/35adbty

On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard and was able to record a small gain. The benchmark index rose 0.15% to 7,342.4 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in a disappointing fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower this morning. This is despite it being a solid night of trade on Wall Street, which late on sees the Dow Jones up 0.5%, the S&P 500 up 0.5%, and the Nasdaq pushing 0.65% higher.

BHP shareholders approve unification

The BHP Group Ltd (ASX: BHP) share price will be on watch today after the mining giant’s shareholders voted in favour of scrapping its dual listing. At the meeting, over 97% of shareholders voted for a sole listing on the Australian share market. This will see BHP become the largest company on the ASX 200.

Oil prices mixed

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch today following a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.35% to US$86.66 a barrel and the Brent crude oil price is up slightly to US$88.48 a barrel. Oil prices softened after traders took profit following some strong gains.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price edged lower. According to CNBC, the spot gold price is down 0.15% to US$1,840.70 an ounce. Traders appear undecided where gold is going next ahead of a key meeting of the US Federal Reserve next week.

Northern Star rated as a buy

The Northern Star Resources Ltd (ASX: NST) share price may have surged 11% higher yesterday but Goldman Sachs still sees significant upside potential. This morning the broker retained its buy rating and lifted its price target to $12.40. Goldman likes the gold miner due to its high-returning organic growth across all production hubs.

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

More reading

• Why were Rio Tinto (ASX:RIO) and BHP (ASX:BHP) shares in the green today?
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Why Allkem, Beacon Lighting, Northern Star, and Virtus Health shares are charging higher
• Newcrest (ASX:NCM) share price regains some shine as inflation worries mount

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3qKnywo