Earnings season went up a gear last week with a large number of popular ASX 200 shares releasing their latest results.

Among the best results last week were arguably the three listed below. Here’s what these ASX 200 shares reported:

Commonwealth Bank of Australia (ASX: CBA)

Australia’s largest bank surprised the market by delivering a half year result that was well-ahead of expectations. For the six months ended 31 December, Commonwealth Bank reported a 23% increase in cash earnings to $4,746 million.

This compares to Goldman Sachs’ cash earnings estimate of $4,295 million, Morgans’ estimate of $4,320 million, and the market consensus estimate of $4,500 million.

In addition, CBA declared a $1.75 per share fully franked interim dividend and announced a $2 billion on-market share buyback. The latter is on top of the $6 billion off-market buyback that completed in October.

Macquarie Group Ltd (ASX: MQG)

Another impressive result came out of investment bank Macquarie. It released its third quarter operational update and revealed that it had a record quarter thanks to its market-facing businesses, Commodities and Global Markets (CGM) and Macquarie Capital (MacCap).

Management revealed that these businesses’ combined profit contribution was up “substantially” on the prior corresponding period. This is also the case on a financial year to date basis, which bodes well for its full year results.

The CGM business delivered strong results across its commodities platform, but particularly in global Gas & Power and Resources. This was driven by increased client hedging and trading opportunities from unusually challenging market conditions. Whereas the MacCap business completed 126 transactions valued at $105 billion globally during the quarter.

Megaport Ltd (ASX: MP1)

Another ASX 200 share that impressed investors was Megaport. While the network as a service provider had pre-released a good portion of its half year figures in January, there were still enough pleasant surprises to get investors excited.

Megaport reported a 42% increase in revenue over the previous corresponding period to $51.2 million. And while it posted a net loss of $20.2 million, this was an improvement from $38.4 million a year earlier. This was thanks to a notably higher than expected gross margin and left Megaport with a healthy cash balance of $104.6 million.

Goldman Sachs reacted very positively to the update, reiterating its buy rating with a $19.90 price target. It commented: “We believe incremental commentary today was broadly positive and supportive of our 2H22 revenue acceleration (+42%/+48% in 1H/2H), driven by MVE and Partner channel traction.”

The post 3 of the best results on the ASX 200 last week appeared first on The Motley Fool Australia.

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• The Macquarie (ASX:MQG) share price has ‘run hard’: What’s next?
• Brokers name 3 ASX shares to buy today
• Why are these ASX 200 tech shares tumbling more than 6% on Friday?
• Here are the top 10 ASX shares 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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO and Macquarie 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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It has been a difficult period for investors, with many popular growth shares pulling back meaningfully in recent weeks.

While that is disappointing, it could have created a buying opportunity for the three ASX growth shares listed below. Here’s what you need to know about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX share to consider this month is this pizza chain giant. While rising inflation poses challenges for Domino’s and could put pressure on its margins, this is only expected to be temporary. In light of this, investors may want to focus more on the long term, which remains very positive. This is thanks to its bold expansion plans at home and overseas, acquisitions, and its focus on technology.

Goldman Sachs remains positive on Domino’s. It currently has a buy rating and $136.20 price target on the company’s shares.

Life360 Inc (ASX: 360)

Another growth share to look at is Life360. Through its Life360 app, the company operates in the digital consumer subscription services market. It has a focus on products and services for digitally native families, where all members of the household are connected by smartphones. At the last count, the company had a massive 33.8 million monthly active users are using its app and was generating US$120.1 million of Annualised Monthly Revenue (AMR) from them. In addition, Life360 has made a number of bolt-on acquisitions recently that open up material cross and upselling opportunities in the future.

Bell Potter is bullish on Life360. It currently has a buy rating and $13.51 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX growth to look at is this cloud-based accounting solution provider to small and medium sized businesses. Xero has been growing at a rapid rate in recent years and continued this trend in FY 2022. For example, 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 count is still only a fraction of its total addressable market of 45 million subscribers globally.

Citi is bullish on Xero. Last month the broker retained its buy rating and $160.00 price target on the company’s shares amid positive read-throughs from rival Sage’s Q1 update.

The post 3 ASX growth shares to buy after recent market weakness appeared first on The Motley Fool Australia.

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• Down 24% in 2022: Is the Xero (ASX:XRO) share price a strong buy?
• Why AGL, Magellan, Xero, and Zip shares are sinking
• Top brokers say there are still ASX 200 growth shares with massive upside in 2022
• Why are these ASX 200 tech shares tumbling more than 6% on Friday?
• 3 buy-rated ASX growth shares to make you smile

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

These dividend shares have recently been named as buys and tipped to provide investors with attractive yields in 2022. Here’s what you need to know about them:

Adairs Ltd (ASX: ADH)

The first ASX dividend share for investors to look at this week is leading furniture and homewares retailer, Adairs.

Although FY 2022 has been tough so far due to COVID-19 headwinds, this weakness is only expected to be temporary. This could make the recent selloff of its shares a buying opportunity for patient income investors.

Commenting on the selloff, analysts at Morgans said: “Today’s trading update was a disappointment and has led us to lower expectations for full year earnings. The share price reaction to the statement was, however, greater than we had thought appropriate. The FY23F P/E of 7.6x with a dividend yield of 8.7% are attractive enough for us to retain an ADD rating.”

The broker has retained its add rating but cut its price target to $3.70. In addition, it is now forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023.

Based on the current Adairs share price of $3.18, this will mean yields of 6% and 8.2%, respectively, over the next couple of years.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX dividend share to look at next week is Australia’s largest bank, Commonwealth Bank.

Bell Potter is a fan of the banking giant and upgraded its shares to a buy rating with a $108.00 price target last week following its half year results.

Commenting on the results, Bell Potter said: “CBA’s $4.75bn cash NPAT was 8% higher than our forecast. […] Cash NPAT was nearly on par with 2H21, a great outcome. There was also investment in operational execution (in line with the bank’s strategic priorities) coupled with a return of excess capital to shareholders of $2bn (on-market share buyback; surplus capital post buy-back would be around $4bn).”

As for dividends, the broker is forecasting CBA to pay fully franked dividends of $3.87 per share in FY 2022 and then $4.07 per share in FY 2023.. Based on the current CBA share price $98.55, this represents yields of 3.9% and 4.1%, respectively.

The post 2 quality ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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

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The Xero Limited (ASX: XRO) share price has seen a significant decline since the start of the year. It’s down by 24%, almost a quarter.

Considering Xero’s size, it has seen one of the biggest declines in market capitalisation in the S&P/ASX 200 Index (ASX: XJO) over the last several weeks.

What’s happening to the Xero share price?

There has been a widespread sell-off of many growth-focused names on the ASX (and around the world).

Interest rates play a key role in affecting asset valuations. That effect is felt everywhere – shares, bonds, property and so on. With so much inflation happening in the US, economists are now thinking that the US central bank, the Federal Reserve, is going to need to increase the rate significantly this year to get things under control.

For example, Goldman Sachs economists now reckon there are going to be seven interest rate increases in 2022.

Many other ASX names have also been sold off heavily. The WiseTech Global Ltd (ASX: WTC) share price is down 24.6% this year, Altium Limited (ASX: ALU) is down 22% and the Temple & Webster Group Ltd (ASX: TPW) share price is down 23%. So, Xero is not alone.

The company continues to grow

Xero’s management will continue doing what they think is right for Xero, regardless of whether the Xero share price is above $150, or around $100.

The cloud accounting software business is building a global position as a leading player. At the end of September 2021 it had 3 million subscribers, which was an increase of 23% year on year.

Xero recognises that to best support its subscribers and win new ones, it needs to keep investing in supporting customer needs and innovating for the long term. Small businesses around the world are increasingly recognising the critical importance of digital tools to help them adapt and succeed in a changing operating environment, according to Xero. That’s why its product design and development costs increased 51% to $166.8 million in the first half of FY22, representing a third of operating revenue.

Xero wants to be the world’s most insightful and trusted small business platform to make life better for people in small businesses.

Numerous financial measures improved in the first half for Xero, including average revenue per user (up 5%), annualised monthly recurring revenue (up 29%) and the gross profit margin (up 1.4 percentage point to 87.1%).

Why the Xero share price could be a major buy

Multiple brokers think the Xero share price is a buy including Citi and Credit Suisse. Both of those price targets were $160, though this was before the 2022 decline. It implies 40% upside this year, if those brokers end up being correct. They note the strength of the software as a service (SaaS) offering of the business, with an attractive rise of the average revenue per user.

After seeing the HY22 report, Macquarie rated Xero as a sell/underperform. But the price target was $130 – that’s 17% higher than where it is today. The underperform rating was because of the stretched valuation.

However, it must be noted that not every broker’s price target is higher. UBS rates Xero as a sell and the price target is $88. That implies a drop of 20% over this year. It thinks the company is growing well, but the Xero share price was too expensive.

The post Down 24% in 2022: Is the Xero (ASX:XRO) share price a strong buy? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Why AGL, Magellan, Xero, and Zip shares are sinking
• Here are the 3 most heavily traded ASX 200 shares this Friday

Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Temple & Webster Group Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Macquarie Group Limited and Temple & Webster Group 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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It’s been a rocky start to 2022 for the Coles Group Ltd (ASX: COL) share price. But a top broker believes that the supermarket chain will continue to languish.

The dour outlook for Coles stems from UBS’ latest supermarket supplier survey conducted between 13 January and 8 February.

The findings from the survey provide no relief for the Coles share price, which has fallen around 10% since the start of the calendar year. This compares to a 4.6% decline for the S&P/ASX 200 Index (ASX: XJO).

How the Coles share price compares to Woolworths share price

At least Coles shareholders are in good company. The Woolworths Group Ltd (ASX: WOW) share price and Metcash Limited (ASX: MTS) share price have also underperformed the ASX 200 this year.

UBS asked FMCG suppliers to rate Coles and Woolworths across 26 sub-categories on a scale of 1 to 10.

The broker noted that Woolies retained its leadership position in all 26 sub-categories compared to Coles.

Coles rated worse than Woolworths

It also noted that scores deteriorated in all 26 sub-categories for Coles when compared to the July 2021 survey. Having said that, Woolworths is not much better as it lost ground in 25 out of the 26 sub-categories. UBS believes this is due to the impact of the Omicron COVID-19 variant.

This could explain why supply chain and store operations, people and engagement, range and data and analytics were areas that declined most.

What could also pressure the Coles share price is that it may have lost Christmas to its archrival Woolworths.

Coles share price lost the Christmas battle

“Across survey respondents, 70% indicated Woolworths had the better Christmas, 9% Coles and 21% saying Coles & Woolworths were the same,” said UBS.

“Looking six months forward, market share gains are expected most from Woolworths (70%), then Aldi (9%), while MTS supplied IGA (52%) and Coles (42%) were most expected to lose market share.”

Inflation tailwind becomes a headwind

In further bad news, investors shouldn’t assume that supermarkets will benefit from rising inflation.

Higher prices are usually good news for the likes of Coles and Woolworths as food staples tend to be inelastic. This means consumers generally buy the same quantity even if prices rise and that will lift like-for-like sales at the supermarkets. But this may not be the case this time around.

“Yet volume and product mix is expected to be impacted, with the prospect of reduced volumes or trade down (e.g. smaller pack size, private label) expected by 79% of respondents, and only 21% expecting no impact to volumes or product mix,” added UBS.

The broker has a sell recommendation on the Coles share price. However, even though Woolies appears to be beating Coles, UBS also rates the Woolworths share price as a sell.

The post Why UBS is warning of more pain for the Coles (ASX:COL) share price appeared first on The Motley Fool Australia.

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• Could this be the biggest issue faced by ASX retail shares heading into earnings season?

Motley Fool contributor Brendon Lau 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 COLESGROUP DEF SET. 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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Despite a disappointing end to the week, the S&P/ASX 200 Index (ASX: XJO) was able to record a strong gain last week. The benchmark index rose 1.4% to end the period at 7,217.3 points.

While a good number of shares climbed higher with the market, some rose more than most. Here’s why these were the best performing ASX 200 shares:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price was the best performer on the ASX 200 last week with an 18.6% gain. Investors were buying the travel agent’s shares amid optimism that the reopening of Australia’s international borders will be a boost to its performance. For the same reason, the Webjet Ltd (ASX: WEB) share price rose 17.5% and the Corporate Travel Management Ltd (ASX: CTD) share price jumped 12.9% last week.

Computershare Limited (ASX: CPU)

The Computershare share price was on form last week and stormed 11.1% higher. Investors were buying the stock transfer company’s shares after its first half update impressed the market. Computershare delivered a 4.6% increase in management revenue to US$1.2 billion and a 4.5% lift in management earnings per share to 22.76 US cents. This was ahead of even the company’s expectations, which led to management upgrading its full year earnings per share growth guidance from 2% to 9%.

Viva Energy Group Ltd (ASX: VEA)

The Viva Energy share price wasn’t far behind with a 10.9% gain. This was despite there being no news out of the fuel retailer. Investors may have been buying shares ahead of its full year results release this month. Management expects to report a profit in the range of $470 million and $490 million. The mid-point of this guidance range represents a 96% year on year increase.

Graincorp Ltd (ASX: GNC)

The Graincorp share price was a strong performer and climbed 8.9% over the five days. This was driven by the release of a trading update from the grain exporter. According to the release, GrainCorp expects its underlying net profit after tax to come in at $235 million to $280 million in FY 2022. This will be up 69% to 100% over the $139 million it reported in FY 2021.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

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• ASX 200 (ASX:XJO) midday update: IAG upgrades guidance, Magellan sinks again
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and 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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The Invictus Energy Ltd (ASX: IVZ) share price has jumped 33% in the past two weeks.

Within that time, the miner kept investors up-to-date with operations at its African gas exploration project — including a date for on-site drilling commencement.

At market close on Friday, the Invictus Energy share price was up 3.23% at 16 cents.

So what’s been going on with this particular ASX 200 mining share? Let’s dive straight in…

Cabora Bassa contract awarded

On Friday, the oil and gas company announced it had awarded an “integrated well services” contract for its 80% owned and operated site in Zimbabwe’s Cabora Bassa Basin.

The contract went to Baker Hughes, which Invictus described as “one of the world’s leading oilfield service providers, operating in more than 120 countries worldwide”. The news appears to have been well received by investors, judging by the increase in the Invictus Energy share price.

The contractor will undertake tasks such as cementing, mud logging, and project management. It will work alongside Exalo Rig 202, which is also performing drilling work on the site.

With the first well “expected to spud” in the first half of this year, this contract puts Invictus “on track” to begin a 2-well drilling campaign by its intended deadline of May this year.

The Baker Hughes contract is expected to start within the next few weeks.

External contractors to assist site development

The miner has involved another external party, ERCE Equipoise, to digest and review the seismic data it collected late last year.

Managing director and CEO Scott Macmillan said the survey provided “greater insight into the subsurface and petroleum potential” of the site.

At the end of January, Invictus released its results for the December quarter. In it, the miner praised the recent share purchase plan (SPP) and capital raising for the Zimbabwe site. The Invictus Energy share price climbed 4.35% the following day.

Macmillan said the SPP allowed the company to “double its targeted raise” and would be used “to fund the rig mobilisation fee and long lead items”.

The company is in a strong position and is now firmly focused on the execution of the planned May drilling campaign.

Invictus share price snapshot

Over the last 12 months, the Invictus share price has increased by 107%.

This time last year, shares were trading around 8 cents. They hit their highest price of 21 cents in April.

At the end of December, the ASX 200 mining share saw a 26% jump coinciding with its SPP.

The company has a market capitalisation of $102.31 million and over 660 million shares issued.

The post Why this ASX 200 mining share has jumped 33% in 2 weeks appeared first on The Motley Fool Australia.

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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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The S&P/ASX 200 Index (ASX: XJO) may be down in the past month but this ASX cannabis share has steamed ahead.

The Cronos Australia Ltd (ASX: CAU) share price has rocketed 26.67% over the past 30 days. On Friday alone, the company’s shares leapt by 8.57% to finish the session at 38 cents. Earlier in the day, they hit an all-time high of 39.5 cents.

Let’s take a look at what could be helping this ASX cannabis share grow.

Why is this ASX cannabis share doing so well?

Cronos Australia is a medicinal cannabis company operating in the medical, clinics, and consumer segments.

Cronos merged with CDA Health Pty Ltd in December. The board appointed four new directors, Guy Headley, Benjamin Jansen, Kurt Schmidt, and Marcia Walker. CDA Health is now a wholly-owned subsidiary of Cronos Australia.

On 27 January, Cronos reported its medicinal cannabis unit sales in H1 FY2022 exceeded total sales for all of FY2021.

The Cronos Australia CEO, Rodney Cocks, described the merger with CDA Health as a “game changer” for the cannabis company and its shareholders.

Cocks said:

The merger with CDA Health is a key milestone achieved by Cronos Australia since its IPO in late 2019 and should propel the integrated company to a position of market leadership in Australia and position it for sustainable, profitable growth.

The combined Cronos Australia and CDA Health business will allow us to take the Company to the next level of growth, both in Australia and offshore.

Cronos Group Inc (TSE: CRON, NASDAQ: CRON) is the largest shareholder of Cronos Australia with a 31% stake.

Cronos share price snapshot

This little-known ASX cannabis share has ascended in value by 153% over the past year and 65% this year to date. For perspective, the benchmark ASX 200 index has returned 6% over the past year.

Cronos has a market capitalisation of about $209 million based on the current share price.

The post This little-known ASX cannabis share has quietly gained 26% in a month to trade at all-time highs appeared first on The Motley Fool Australia.

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• 2 ASX healthcare shares bucking the trend to hit new highs on Friday

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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It was a volatile but positive week for the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index ultimately recorded a 1.4% gain to finish the period at 7,217.3 points.

Unfortunately, not all shares climbed higher with the market. Here’s why these were the worst performers on the ASX 200 last week:

Appen Ltd (ASX: APX)

The Appen share price was the worst performer on the ASX 200 last week with an 11% decline. Investors were selling off this artificial intelligence data services company’s shares again last week amid weakness in the tech sector and concerns over potentially softening demand for its offering. This followed a weak update from Meta (Facebook) and a recent announcement from the tech giant regarding advances it has made with data labelling algorithms.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price was out of form and tumbled 8.4% last week. The catalyst for this was the release of the mining and mining services company’s half year results. Those results fell well short of expectations, with Mineral Resources delivering an underlying net loss after tax of $36 million for the six months. This compares to the consensus estimate of a $105 million profit.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price wasn’t far behind with a decline of 7.3% over the five days. This follows news that the infection prevention specialist is revising its deal with GE Healthcare in North America immediately before it terminates in June. The new sales model will see Nanosonics become responsible for all inventory, shipping, installations, and training of new customers. The changes are expected to impact its sales in the second half and lead to an increase in costs as its builds up its direct sales capabilities. GE Healthcare has been instrumental in growing Nanosonics’ market share in North America.

AGL Energy Limited (ASX: AGL)

The AGL share price was a poor performer and dropped 7.3% last week. The majority of this decline occurred the day after the release of its half year results following a mixed response from brokers. For example, Morgans responded to the energy company’s half year results by retaining its hold rating and cutting its price target to $7.24. Although AGL delivered a result that was better than Morgans expected, the broker continues to believe that it is a difficult investment proposition ahead of its demerger.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
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• What’s the outlook for AGL (ASX:AGL) shares according to these brokers?

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

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The Medibank Private Ltd (ASX: MPL) share price finished slightly above its previous close on Friday.

At the close, shares in the private health insurer were up 1% to $3.18. Despite the higher finish, the company’s shares are still 7% off the mark from where they started the year at.

It appears that reports shared Thursday night concerning Medibank Private have had a minimal impact on the Medibank share price on Friday. The matter disclosed by The Australian speculated that the Australian health insurer had reached a deal to acquire a day hospital operator.

Let’s take a look at the details.

A power play for Medibank shares?

According to reports, Medibank Private could be acquiring Cura Group. Starting in 2008, Cura operates day hospitals and surgeries across Australia, now with 26 under its umbrella — these include:

• Barton Private Hospital
• Somerset Private Hospital
• Sydney Day Surgery Prince Alfred
• Queensland Eye Hospital
• Newscastle Endoscopy Centre

A 70% stake in Cura Group was previously acquired by Fresenius Medical Care in 2017. At the time, this transaction was believed to be worth $400 million. However, at that time the operator only held 19 assets across its portfolio. In total, these assets pulled in ~$127 million of revenue in 2016.

Back to the present for Medibank shares — it is currently unknown for what amount a deal between Cura and Medibank Private would be worth.

Furthermore, some have speculated that the ASX-listed company is looking to align the announcement of the deal with its first-half earnings on 25 February.

If carried out, the deal would further deepen Medibank’s vertical integration of healthcare providers. This would add to past deals including:

• 33.4% stake in preventive care clinics operator Myhealth Medical Group in 2021
• 49% stake in East Sydney Private Hospital in 2020; and
• Complete acquisition of in-home care provider Home Support Services in 2018

The goal shared by ASX-listed Medibank is to set itself apart from other health insurance providers.

The post Could this give Medibank (ASX:MPL) shares a boost during earnings season? appeared first on The Motley Fool Australia.

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• When might Medibank (ASX:MPL) shareholders ‘feel better’?
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Motley Fool contributor Mitchell Lawler 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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