Key points

• There are some high-quality ASX tech shares that have been sold-off, which could be opportunities
• Doctor Care Anywhere, a telehealth business, is seeing a strong increase in organic revenue and growing its number of patients
• Volpara is a breast screening healthcare tech company which has a high gross profit margin and it’s growing its subscription revenue

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Some of the most promising ASX tech shares have seen significant falls in recent weeks. February 2022 might be the month to jump on some of these potential opportunities.

Technology can come in all forms. Some provide services through e-commerce, others provide office software, and so on.

But healthcare is also becoming increasingly technological. These two ASX tech shares could be ones to look at in February:

Doctor Care Anywhere Group Plc (ASX: DOC)

Doctor Care Anywhere describes itself as a UK-based telehealth company that connects patients with healthcare providers through its platform. It recently expanded into Australia with an acquisition as well.

The company recently announced how it performed in FY21, being the 12 months to 31 December 2021. Doctor Care Anywhere achieved revenue growth of 115.7% to $46.3 million. Included in that was 114.6% organic revenue growth, achieving and exceeding its guidance of at least 100% growth.

Profitability is increasing at the business. The gross profit margin went up 5.4 percentage points to 35.7% in the fourth quarter of 2021.

The growth rate is increasing. In the fourth quarter, revenue and consultations increased by 35.9% and 22.7%, respectively, compared to the third quarter of 2021. It also reported 50,500 new patients used the service during the last quarter, which was a new record.

It also recently announced a new operating model, which will see it provide multiple options for patients to receive care depending on their clinical requirement. This is expected to yield a “significant improvement” in margins and profitability.

The business says that it’s well-positioned to maintain its progress in 2022. Despite that, the Doctor Care Anywhere share price has fallen 20% in 2022 and 40% over the last six months.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX tech share that provides healthcare software. Specifically, it’s involved in breast screening and increasingly lung cancer screening.

It has built a market share of around a third in the US of women who have at least one Volpara product used on their screening images.

The Volpara share price has fallen by 18% since the start of the year.

However, the company continues to grow at a fast rate. A couple of months ago, Volpara announced its FY22 result which showed a number of interesting statistics. Its gross profit margin remained above 91%, the subscription revenue jumped 35% to NZ$11.8 million and annual recurring revenue (ARR) increased to US$20.4 million, up from US$12.8 million.

Volpara has been working on building relationships in the lung cancer space, which could help it over the long-term, including RevealDx and Riverain Technologies.

The ASX tech share’s average revenue per user (ARPU) continues to grow. It’s looking to grow the ARPU by selling a platform, not just a product, with its suite of products. It’s winning new deals which are on-boarding with an attractive ARPU. It can also upsell to existing customers – with clients that upgrade from old systems, it typically leads to a 200% to 300% increase in recurring revenue.

It’s also on the lookout for acquisition opportunities that can expand its customer reach, skills or products, to help increase ARPU and/or provide Volpara with technology for the future.

The post 2 top ASX tech shares for February 2022 appeared first on The Motley Fool Australia.

More reading

• 3 exciting small cap ASX shares to watch
• 2 small cap ASX shares with a lot of potential: experts
• 2 exciting small cap ASX shares named as buys
• 2 ASX tech shares that are rapidly growing
• Are these 2 ASX tech shares good buys in January?

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 Doctor Care Anywhere Group PLC and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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 don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be a quick fix. This is because ETFs allows you to invest in a large number of shares through just a single investment.

With that in mind, I have picked out three ETFs that trade on the ASX that could be good options for investors in February. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you’re wanting to gain exposure to the growing Asian economy, then the BetaShares Asia Technology Tigers ETF could be a way to do this. This ETF gives investors access to a number of the most promising tech shares in the Asian market. This means you’ll be owning a slice of well-known companies such as ecommerce giants Alibaba and JD.com, search engine company Baidu, and WeChat owner Tencent.

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF. could be a good option for investors looking to invest in the the global cybersecurity sector. Included in the fund are quality companies such as Accenture, Cisco, Cloudflare, Fortinet, Okta, Splunk, Zscaler, Crowdstrike. These companies appear well-placed for growth over the next decade thanks to the increasing demand for cybersecurity services due to the growing threat of cyberattacks.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Finally, if you’re interested in the US tech sector, then the BetaShares NASDAQ 100 ETF could be the one for you. This ETF provides investors with access to the 100 largest non-financial shares on the famous NASDAQ index. Among the 100 shares included in the fund are household names and some of the highest quality companies in the world. This means you’ll be buying tech giants such as Amazon, Apple, Facebook/Meta, Microsoft, Netflix, and Tesla.

The post 3 high quality ETFs for ASX investors in February appeared first on The Motley Fool Australia.

More reading

• Are these 2 leading ETFs good buys in February 2022?
• Is the Betashares Nasdaq 100 ETF (ASX:NDQ) an opportunity in this market correction?
• 2 excellent ETFs for ASX investors in February
• 2 top international ETFs for ASX investors
• 2 strong ETFs for potential growth

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 BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. 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

• Block’s shares have crashed since their listing on the ASX
• The tech selloff has weighed on its shares, as has rumours about Apple’s plans
• Apple could be about to disrupt the disruptor with its iPhones

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It hasn’t been a good start to life on the Australian share market for the Block Inc (ASX: SQ2) share price.

After trading as high as $178.88 shortly after their listing, the payments company’s shares have dropped 17% to $149.27.

Why is the Block share price under pressure?

While a good portion of the weakness in the Block share price has been driven by a selloff in the tech sector due to the prospect of interest rates rising sooner than expected, it isn’t the only reason for the underperformance.

The company’s shares have come under pressure this week amid reports that tech behemoth Apple could be on the verge of competing with Square in the payment terminal market. This is on top of existing speculation that Apple is interested in launching a buy now pay later (BNPL) offering that would compete with the newly acquired Afterpay business.

What’s the latest?

According to Bloomberg, Apple is currently developing a new payments service that will allow ‌iPhones‌ to accept debit and credit cards without any further hardware. All this technology requires is an NFC chip, which has been included in iPhones since the iPhone 6. This is made possible thanks to Apple’s acquisition of Canada’s Mobeewave for approximately US$100 million in 2020.

This means that small business owners would be able to take payments from customers without needing hardware like the Square Reader or the EFTPOS machines from Tyro Payments Ltd (ASX: TYR).

What impact this ultimately has on Block’s performance, only time will tell. But judging by the Block share price in recent days, investors appear concerned that it could slow its terminal and gross payment volume growth if Apple starts to win market share.

Though, it is worth remembering that Apple hasn’t confirmed this technology nor its BNPL aspirations.

The post Trouble in tech land may not be the only reason Block (ASX:SQ2) shares have dived 17% since listing appeared first on The Motley Fool Australia.

More reading

• What happened to ASX buy now, pay later shares today?
• 5 things to watch on the ASX 200 on Thursday
• What happened to ASX tech shares today?
• There’s a new kid on the Block (ASX:SQ2), but how does it make money?
• Has the Zip (ASX:Z1P) share price fallen on Block’s ASX debut?

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 Block, Inc. and Tyro Payments. The Motley Fool Australia has recommended Apple and Tyro Payments. 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) had a week to forget after the US Federal Reserve indicated that it would start to raise rates in March. The benchmark index tumbled 2.6% over the period to end at 6,988.1 points.

Fortunately, not all shares were dragged lower with the market last week. In fact, some even managed to record strong gains. Here’s why these were the best performers on the ASX 200 last week:

Codan Limited (ASX: CDA)

The Codan share price was the best performer on the ASX 200 with an 11.2% gain. This follows the release of a trading update from the metal detector and electronic products company. Codan revealed that a strong finish to the half led to it recording sales of $257 million for the six months ended 31 December. This represents a 32% improvement over the prior corresponding period.

Inghams Group Ltd (ASX: ING)

The Inghams share price was a solid performer and charged 5% higher over the period. This may have been due to bargain hunters looking for value options amid the weakness in growth shares. This poultry producer’s shares were sold off recently following the release of a disappointing trading update.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price wasn’t far behind with a gain of 4.8%. This follows the release of the Canadian iron ore miner’s third quarter update. While Champion Iron reported a 23% decline in revenue to C$253 million and a 43% reduction in EBITDA to C$122.1 million, this was ahead of expectations thanks to higher iron ore prices. For example, Goldman Sachs was expecting EBITDA of C$87 million for the three months. Goldman put a buy rating and $7.10 price target on its shares in response to the update.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price was on form and rose 4.6% over the four trading days. This could have been driven by a broker note out of Macquarie last week. In response to the mining giant’s agreement with the Mongolian government for the Oyu Tolgoi operation, the broker retained its outperform rating and $130.00 price target on its shares. This compares to the current Rio Tinto share price of $113.76.

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

More reading

• Here are the top 10 ASX shares today
• Why Champion Iron, Dusk, Hipages, and Imugene shares are charging higher
• ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint
• Champion Iron (ASX:CIA) share price jumps on quarterly results
• Own Rio Tinto (ASX:RIO) shares? What options does the company have in response to the Serbian government’s decision

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.

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Key points

• Global share markets are becoming volatile, opening up some opportunities for investors
• The Betashares Nasdaq 100 ETF can give investors exposure to some of the world’s leading technology businesses like Apple and Microsoft
• The VanEck Morningstar Wide Moat ETF is about businesses that have strong competitive advantages and look good value

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The global share market volatility could mean it’s a good time to consider some of the highest-quality exchange-traded funds (ETFs) on the ASX.

Investors seem to be worried about rising interest rates because of the high level of inflation that the US is seeing.

Higher interest rates can have the impact of hurting the current valuations of businesses. But that may mean that investors can get exposure to these companies at better prices.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF from Betashares is about providing investors with exposure to 100 of the largest non-financial businesses on the NASDAQ, which is a North American stock exchange.

Since the start of the year, the NDQ ETF has fallen by 12% due to all of the volatility that the US share market is experiencing. Remember, an ETF simply tracks the returns of the underlying holdings (and also takes the management fees).

Lower prices can be an opportunity to get exposure to many of the world’s leading technology businesses including: Apple, Microsoft, Amazon, Alphabet, Meta (Facebook), Tesla, Nvidia, Adobe, PayPal and so on.

Within this portfolio are leaders from several different sectors including Costco, Netflix Moderna, Intuitive Surgical and ASML.

This ETF has an annual management fee of 0.48% per annum.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This ETF is also based on shares that are listed in the US. However, it isn’t based on an index which is influenced by the size of those businesses.

The stocks that are picked for this ETF’s holdings are ones chosen by analysts from Morningstar that look good value and are believed to possess wide economic moats.

An economic moat is a way of describing its competitive advantages. For example, it could have cost advantages, patents, scale advantages, brand power and so on. The “wide” part of the description of the economic moat refers to the belief that the businesses will almost certainly hold onto their current competitive advantages for the next decade and more likely than not for the next two decades.

Businesses are only allocated a weighting to this ETF’s portfolio if they’re at attractive prices relative to Morningstar’s estimate of fair value.

On 27 January 2022, there were 46 holdings in the portfolio. The ones with a weighting of at least 2.7% were: Cheniere Energy, Lockheed Martin, Wells Fargo, Merck & Co, Berkshire Hathaway, Altria Group, Philip Morris, Bristol-Myers Squibb, Aspen Technology, Dominion Energy, Kellogg, Constellation Brands and Corteva.

Unlike the NDQ ETF, most of the positions in the MOAT ETF are reasonably similar sized weightings.

Looking at the sector allocation, at the end of December 2021, IT made up just over 25% of the portfolio, with healthcare, industrials and consumer staples having mid-teen percentage weightings.

Performance is not a reliable indicator of future performance, but at the end of 2021 this ETF had produced an average return per annum of 18.3% over the prior five years.

The post Are these 2 leading ETFs good buys in February 2022? appeared first on The Motley Fool Australia.

More reading

• Is the Betashares Nasdaq 100 ETF (ASX:NDQ) an opportunity in this market correction?
• 2 top international ETFs for ASX investors
• 2 strong ETFs for potential growth
• 2 popular ETFs for ASX investors in 2022
• 2 ASX ETFs with strong growth potential

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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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Looking for some dividend shares for next week? If you are, check out these dividend shares that could be in the buy zone after recent market weakness.

Here’s what you need to know about them:

Centuria Industrial Reit (ASX: CIP)

The first ASX dividend share to look at is Centuria Industrial. It is the largest domestic pure play industrial REIT on the Australian share market with a portfolio of high-quality industrial assets.

These assets are situated in key metropolitan locations throughout Australia with an 89% weighting to Australia’s high performing eastern seaboard industrial markets. In respect to its tenant base, almost two-thirds of portfolio income is derived from occupants directly linked to the production, packaging and distribution of consumer staples, telecommunications and pharmaceuticals.

Macquarie is a fan of the company. Its analysts are forecasting dividends per share of 17.3 cents in FY 2022 and 18.7 cents in FY 2023. Thanks to a recent pullback in the Centuria Industrial share price to $3.82, this will mean yields of 4.5% and 4.9%, respectively.

The broker also sees upside for its shares and has an outperform rating and $4.37 price target on them.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to consider is this telco giant.

Earlier this month the Telstra share price reached a multi-year high of $4.31. But due to the recent market volatility, it closed the week down at $3.96.

This could be a big positive for income investors, with the yield on offer with its shares back to 4% based on its plans to pay a fully franked 16 cents per share dividend in FY 2022.

In addition, the team at Morgans believe there is decent upside for the Telstra share price from the current level. A recent note reveals that the broker has an add rating and $4.55 price target. This suggests the company’s shares could rise 15% from current levels in 2022.

The broker believes industry conditions are positive and Telstra’s sum of the parts (SOTP) is worth more than its current valuation.

Morgans commented: “Industry dynamics have turned positive (NBN and mobile prices are increasing after 5 years of decline; TLS’s targets imply they continue to rise). The SOTP for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear).”

The post 2 ASX dividend shares with 4%+ yields appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Friday
• Here’s why the Telstra (ASX:TLS) dividend is back over 4%
• These 3 ASX 200 shares are topping the volume charts on Thursday
• Telstra (ASX:TLS) ‘best placed in the Aussie mobile market’ says JP Morgan
• 2 strong blue chip ASX shares rated 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 owns and has recommended Telstra Corporation 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 was another tough week for the S&P/ASX 200 Index (ASX: XJO) after the US Federal Reserve indicated that it would start to raise rates in March. The benchmark index lost 2.6% of its value during the four-day week to end it at 6,988.1 points.

While a good number of shares tumbled with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 last week:

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price was the worst performer on the ASX 200 with a 19.1% decline. Investors were selling gold miners last week after the gold price pulled back following hawkist rhetoric from the US Federal Reserve. The likes of Regis Resources Limited (ASX: RRL), Ramelius Resources Limited (ASX: RMS), and Resolute Mining Limited (ASX: RSG) recorded similarly severe declines of 17% to 18%.

Kogan.com Ltd (ASX: KGN)

The Kogan share price wasn’t far behind with a 16.9% decline over the period. Investors were selling the ecommerce company’s shares following the release of a trading update. According to the release, Kogan achieved a 9% lift in first half gross sales thanks to the inclusion of the Mighty Ape business for the full six months instead of just one month in the prior corresponding period. Things were much worse for its earnings, with Kogan reporting a massive 58% decline in EBITDA to $21.7 million. This was driven by supply chain challenges, higher logistic costs, and its investment in marketing. Once again, the six-month inclusion of Mighty Ape masked over what would have been an even bigger earnings decline.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was out of form and sank 16.2% over the four trading sessions. This was driven by weakness in the tech sector. In addition, the sports betting company’s second quarter update received a lukewarm response from investors. PointsBet reported an 11% increase in group turnover to $1,326 million and net win growth of 61% to $71.9 million. However, also growing were its losses. PointsBet’s operating loss widened to $51.8 million.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price was the next worst non-gold miner with a 15.8% decline. This appears to have been driven by weakness in the battery materials sector and a broker note out of Ord Minnett. In respect to the latter, the broker downgraded the company’s shares to a sell rating with a $45.00 price target on valuation grounds.

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
• Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?
• When it comes to ASX shares, is it possible to pick the bottom?
• These 3 ASX 200 shares are topping the volume charts this Friday
• Analysts give their verdict on the Kogan (ASX:KGN) share price

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 Kogan.com ltd and Pointsbet Holdings Ltd. The Motley Fool Australia owns and has recommended Kogan.com 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

• The Ramelius share price sank 8% today
• Investors did not warm to the company’s quarterly results
• Gold production at its Western Australian mines was at the lower end of the guidance

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The Ramelius Resources Ltd (ASX: RMS) share price finished in the red after the company released its quarterly report today.

The company’s shares were swapping hands at $1.32 at the close of trade, down 8.04%. This is its lowest level since late September 28, 2021.

Let’s take a look at what the gold miner reported today.

Ramelius share price falls amid quarterly results

The company released its 2021 quarterly report for the period ending 31 December 2021. Highlights included:

• Cash and gold on hand fell 39.9% on the previous quarter to $164.5 million
• Gold production of 66,919 ounces at an all-in sustaining cost (AISC) of $1,493 per ounce
• The miner produced 31,552 ounces at Mt Magnet mine and 35,367 at Tampia mine, both in Western Australia
• Total revenue was $182 million from 77,225 ounces of gold sales at an average price of A$2,357 per ounce.

What else happened in the quarter?

Ramelius owns and explores the Edna May, Vivien, Marda, Tampia and Penny gold mines in Western Australia.

The company said overall production targets were at the lower end for the quarter. There was a slight fall in the grade and throughput at its Mt Magnet project.

This was due to a shortage of oxide, and workforce shortage impacting the company’s ability to haul as much ore as it would have liked.

However, Ramelius said there was an increase in ore stocks at the Tampia and Marda mines, with 785,000 tonnes of ore that could generate up to $60 million in cash flow.

The company completed plenty of diamond drilling during the quarter and received assay results. Ramelius also acquired the Rebecca Gold Project from Apollo Consolidated Limited.

Capital and project development spending for the 2022 financial year remains at about $70 million.

What’s next for the company?

Ramelius Resources said the impact of the WA border closure and any COVID-19 infections at the mine site were too hard to predict. Supply disruptions could also be impacted.

Gold production guidance for FY2022 remains at 260,000 to 300,000 ounces at an AISC of A$1,425-$1,525 per ounce

Ramelius share price recap

The Ramelius share price has fallen 16.24% since the start of 2022, and 10.85% over the past 12 months.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned just over 5% in the past year.

The company has a market capitalisation of about $1.1 billion based on its current share price.

The post Here’s why the Ramelius (ASX:RMS) share price tumbled 8% to 4-month lows today appeared first on The Motley Fool Australia.

More reading

• Here’s what 67% of brokers think of the current IAG (ASX:IAG) share price
• Could this help Woolworths (ASX:WOW) withstand the current climate of uncertainty?
• Here are the top 10 ASX shares today
• Analysts name 2 ASX shares to buy right now
• Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?

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://www.fool.com.au/2022/01/28/heres-why-the-ramelius-asxrms-share-price-tumbled-8-to-4-month-lows/

Key points

• The IAG share price traded up today
• IAG has made a solid start to the year having rallied as much as 6% in this time
• Most of the brokers covering the company have IAG as a buy right now
• Over the last 12 months, shares are still down more than 13%

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The Insurance Australia Group Ltd (ASX: IAG) share price finished less than 2% in the green today at $4.34 apiece.

In fact, IAG has made a solid start to the year, amid the market turbulence that’s ensued since January 1. Shares are up almost 2% since then, having rallied as much as 6%.

As seen on the chart below, IAG was matching the S&P/ASX 200 Financials Index (XFJ) until the new year, where it then crossed over and took off. The company now leads the index after trailing it for the entirety of 2021. That could be important, as IAG is now generating its own return separate from the market return.

With a shifting regime in macroeconomic policy abundantly clear, investors are wondering where might be the best place to protect their hard earned capital.

We’ve gone to the experts to see what the current sentiment on IAG is, and from what it appears, the outlook is overwhelmingly bullish. Let’s take a look.

IAG is a buy, these brokers say

Credit Suisse expect IAG to outperform this year and rates it as a buy, valuing the company at $5.94 per share in a January note.

The broker reckons that IAG should absorb any peril costs well this year and is attracted to the insurance giant’s valuation on current figures.

Citi reckons IAG is a buy now as well, noting that the company’s share price is coming off a low base in 2021 and should perform better in 2022.

Meanwhile, the team at investment bank JP Morgan are also constructive on IAG shares and advocated clients to load up on the company in a note from this month.

The broker values IAG at a premium of $5.45 per share and feels that sentiment will improve given a number of sub-factors regarding the company’s earnings profile.

“IAG has a strong position in the Australian and NZ personal lines market, but has suffered in recent times from concerns around COVID-19 Business Interruption losses and concerns on market share losses in personal lines”, JP Morgan says.

“Short- to medium-term margin pressures have proved challenging for IAG, including higher reinsurance costs, lower yields, higher natural perils and reducing reserve releases”.

But the macro-environment could be improving for IAG, says JP Morgan. With the interest rate cycle looking set for a change in regime, the broker reckons that these points could be a net positive for IAG.

“The cycle is turning favourable for IAG in the commercial lines segment”, the broker added, noting that the “favourable [business interruption] BI second test case ruling suggests possibly a very large release” of approximately $1.2 billion to the company.

Each of Macquarie, Jarden and Morgans also rate IAG as a buy right now, valuing the company at $5.10, $5.50 and $5.23 per share respectively.

In fact, in a list of analysts provided by Bloomberg Intelligence, approximately 67% of firms have IAG as a buy right now, whereas just 16.7% each have it as a hold and sell.

A bit more on the IAG share price

The consensus valuation derived from this list is $5.19 per share, implying a 19% upside potential at the time of writing should the bull thesis play out.

IAG shares have started the year well and are climbing nicely into the green since January 1. However, over the last 12 months, shares are still down more than 13%.

The post Here’s what 67% of brokers think of the current IAG (ASX:IAG) share price appeared first on The Motley Fool Australia.

More reading

• Own IAG (ASX:IAG) shares? Here’s what you’re really invested in
• Leading brokers name 3 ASX shares to sell today
• Could this help take pressure off IAG (ASX:IAG) shares in the future?
• Why this broker tips IAG (ASX:IAG) shares as a buy in 2022
• Why is the IAG (ASX:IAG) share price having a rollercoaster start to the year?

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

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/heres-what-67-of-brokers-think-of-the-current-iag-asxiag-share-price/

Key points

• The Woolworths share price jumped 3.53% on Friday
• The supermarket giant has been recognised as the most valuable Australian brand
• The S&P/ASX 200 Consumer Discretionary Index ascended 3.27% today

The Woolworths Group Ltd (ASX: WOW) share price finished in the green today despite recent COVID-19 uncertainty.

The company’s share price finished the week at $1.19, up 3.53% on yesterday’s close. Meanwhile, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) elevated 3.27%.

Let’s take a look at what’s been happening at the company lately.

Brand recognition

Woolworths has just been recognised as the most “valuable” Australian brand and the second “strongest” brand in a report by Brand Finance Australia. This could stand the company in good stead amid the current climate of uncertainty due to COVID-19.

The supermarket giant achieved a 9% surge in brand value to $13.7 billion. Despite Woolworths facing supply challenges during the Omicron wave, the report said:

Holding a 33% market share, Woolworths has been pivotal in keeping the supply chain going throughout the pandemic.

Over the last year, the brand has demonstrated an ability to adapt to the shifting retail landscape, expanding its online capability to better serve its large customer base.

The brand’s strong reputation, loyal customers, and lower risk over the last year helped to navigate any potentially detrimental effects to its brand value caused by Endeavour Group’s demerger, of which Woolworths owned 15%.

It’s the third successive year Woolworths has taken out the top spot. Telstra Corporation Ltd (ASX: TLS) was ranked the second most valuable brand, with BHP Group Ltd (ASX: BHP) third.

Coles Group Ltd (ASX: COL) achieved a 26% surge in brand value to $9.9 billion and was ranked fourth on the list. The Coles share price increased 5.02% today.

In the “strongest” brand category, Woolworths came in second after Bunnings, owned by Wesfarmers Ltd (ASX: WES). Another Wesfarmers business, Officeworks, took third place, with Coles again in fourth.

Brand Finance says it determines the relative strength of brands “through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance”.

There has been little news from Woolworths since the start of the year. Its only release to the market came on January 7, when it announced it had pulled out of the race to acquire pharmacy chain operator Australian Pharmaceutical Industries Ltd (ASX: API).

Woolworths share price snapshot

The Woolworths share price may have gained nearly 4% for the day, but it has fallen 8% since the start of the year.

Its shares have fallen 7.5% over the past month, and 3.6% over the past 12 months.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% over the past year.

Woolworths has a market capitalisation of roughly $42.2 billion based on its current share price.

The post Could this help Woolworths (ASX:WOW) withstand the current climate of uncertainty? appeared first on The Motley Fool Australia.

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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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/could-this-help-woolworths-asxwow-withstand-the-current-climate-of-uncertainty/