With many brokers taking a well-earned break over the holiday period, new broker notes are extremely limited.

In light of this, listed below are a few recent broker recommendations that are still very relevant today. Here’s are three ASX shares rated as sells:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Macquarie, its analysts have retained their underperform rating and $86.00 price target on this banking giant’s shares. The note reveals that Macquarie has reduced its earnings estimates for the banking giant to reflect aggressive competition for home loans. It notes that this is weighing on margins. Macquarie has also increased its costs forecasts in response to Commonwealth Bank’s recent trading update. The CBA share price is trading at $101.54 this afternoon.

Mineral Resources Limited (ASX: MIN)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $38.70 price target on this mining and mining services company’s shares. The broker isn’t convinced with the company’s plan to investigate the development of a new iron ore export facility in Port Hedland with Hancock Prospecting and Roy Hill. Morgan Stanley appears concerned it could support increased supply and weigh on iron ore prices. The Mineral Resources share price is fetching $56.40 this afternoon.

Virtus Health Ltd (ASX: VRT)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $6.50 price target on this fertility treatment company’s shares. While Morgans Stanley acknowledges that trading conditions have been better than it was expecting this year, it isn’t enough for a more positive recommendation. The broker continues to see Virtus Health’s shares as fully valued at the current level. The Virtus Health share price is trading at $6.78 this afternoon.

The post Brokers name 3 ASX shares to sell appeared first on The Motley Fool Australia.

More reading

• Here’s what this broker thinks of the CBA (ASX:CBA) share price
• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update
• How does Westpac stack up against the CBA (ASX:CBA) share price?
• Is this ASX sector gearing up for a year of M&A activity?
• ASX 200 (ASX:XJO) midday update: CBA and Westpac rise, Afterpay tumbles again

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 Virtus Health 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/3pIrSvS

With the majority of brokers across Australia taking a well-earned break, broker notes are few and far between at present.

In light of this, listed below are a few recent broker recommendations that remain very relevant today. Here are three ASX shares rated as buys:

BHP Group Ltd (ASX: BHP)

According to a note out of Macquarie, its analysts have retained their outperform rating and $52.00 price target on this mining giant’s shares. Macquarie highlights that industry data appears to indicate improving demand for iron ore. In addition, the broker notes that BHP remains it top pick among the major miners. It estimates that the company’s shares are trading on a free cash flow yield in the high teens, which bodes well for dividends. The BHP share price is trading at $41.47 this afternoon.

NEXTDC Ltd (ASX: NXT)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $16.10 price target on this data centre operator’s shares. This follows news that NEXTDC has acquired its first edge data centre in Maroochydore on the Sunshine Coast. Macquarie sees a big opportunity in edge data centres, which service regional areas and have the potential to offer greater returns than current centres in capital cities. The NEXTDC share price is fetching $12.86 on Friday afternoon.

Qantas Airways Limited (ASX: QAN)

Analysts at Citi have retained their buy rating but trimmed their price target on this airline operator’s shares to $5.86. Although Qantas’ trading update revealed that it will be posting a big first half loss, Citi remains positive and believes the risk/reward on offer remains attractive. Particularly given how at these levels, the broker thinks the International recovery is not priced into its shares. The Qantas share price is trading at $4.97 today.

The post Brokers name 3 ASX shares to buy appeared first on The Motley Fool Australia.

More reading

• Analysts rate these ASX 200 dividend shares as buys
• Brokers name 3 ASX shares to sell
• 3 fantastic ASX 200 shares to buy in 2022
• 5 things to watch on the ASX 200 on Thursday
• How are ASX 200 travel shares faring over the holiday season?

Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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/3eB2RfF

The S&P/ASX 200 Index (ASX: XJO) is on course to end a very positive year with a decline. At the time of writing, the benchmark index is down 0.5% to 7,477 points.

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

4DS Memory Ltd (ASX: 4DS)

The 4DS Memory share price is down 10% to 9 cents. This follows the release of a response to an ASX price query following a sharp rise in its semiconductor company’s share price. 4DS revealed that it could not explain the rise, which appears to have deflated whatever optimism drove its shares higher.

Healius Ltd (ASX: HLS)

The Healius share price is down 1.5% to $5.27. This healthcare company’s shares have come under a spot of pressure this week after the government promoted the use of rapid antigen tests. Healius has been a big winner from sky high COVID-19 testing volumes over the last 18 months.

Helloworld Travel Ltd (ASX: HLO)

The Helloworld share price is down over 2% to $2.46 despite there being no news out of the travel company. However, prior to today, its shares were up 13% since the start of December. This could have led to some investors taking a bit of profit off the table on Friday.

Humm Group Ltd (ASX: HUM)

The Humm share price is down 2.5% to 91 cents. This financial services and buy now pay later provider’s shares have come under pressure after Bank of Queensland Limited (ASX: BOQ) quashed speculation that it was looking to acquire it. Earlier this month Humm revealed that it had received a number of takeover enquiries and was willing to engage with these suitors. However, Bank of Queensland doesn’t appear to be one of them.

The post Why 4DS, Healius, Helloworld, and Humm shares are dropping today appeared first on The Motley Fool Australia.

More reading

• 4DS Memory (ASX:4DS) share price plunges 9% amid ASX price query
• Bank of Queensland (ASX:BOQ) hoses down Humm (ASX:HUM) takeover rumours
• Why is the Webjet (ASX:WEB) share price underperforming Helloworld in December?
• Why Afterpay, Healius, IDP Education, and Transurban shares are falling
• Why Anteotech, Bega Cheese, Humm, and Syrah shares are racing 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 Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

The Mesoblast Limited (ASX: MSB) share price is heading north today following a positive update regarding its remestemcel-L drug.

At the time of writing, the share price of the allogeneic cellular medicines company is up by 2.94% to $1.40.

However, in earlier trading, the Mesoblast share price reached $1.43, which is 5.1% above yesterday’s close of $1.36.

What did Mesoblast announce?

Investors are snapping up Mesoblast shares after the company provided a regulatory update on the appropriate potency assay on remestemcel-L.

According to the release, the company held discussions with US Food and Drug Administration’s Office of Tissues and Advanced Therapies (OTAT) in response to the received complete response letter (CRL).

As such, Mesoblast requested to explore the potency assay and chemistry, manufacturing and controls (CMC) items for remestemcel-L.

The OTAT advised that the company’s approach to addressing the outstanding CMC items is a reasonable critical quality attribute (CQA). OTAT also noted that the relevance of this activity to clinical outcomes should be established.

Mesoblast stated that it has generated substantial data that it believes meets the proposed in vitro immunomodulatory activity of remestemcel-L. This is demonstrated in its phase III trial in children with steroid-refractory acute graft versus host disease (SR-aGVHD).

The company will present its findings to the OTAT, and address other remaining CRL items as required, for the Biologics License Application resubmission.

What is remestemcel-L?

Mesoblast’s lead drug candidate remestemcel-L is a cellular therapy product. It consists of cultured, cryopreserved mesenchymal stem cells derived from the bone marrow of healthy donors.

Remestemcel-L is being developed to treat steroid-refractory acute graft versus host disease (SR-aGVHD). However, Mesoblast has also been experimenting with remestemcel-L to treat patients infected with COVID-19.

About the Mesoblast share price

Over the past 12 months, Mesoblast shares have plummeted in value, sinking almost 40%.

The Mesoblast share price fell to a 52-week low of $1.31 earlier this month.

At today’s price, Mesoblast has a market capitalisation of $908 million, with approximately 648 million shares on issue.

The post Why the Mesoblast (ASX:MSB) share price is rising 5% today appeared first on The Motley Fool Australia.

More reading

• Why Bega Cheese, Magnis, Mesoblast, and Neometals shares are pushing higher
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• These were the worst performers on the ASX 200 last week
• Mesoblast (ASX:MSB) share price jumps 12% on FDA update

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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/3FDHxls

The Sonic Healthcare Limited (ASX: SHL) share price is having a bright December, capping off a bumper year.

Shares in the medical diagnostic company are swapping hands at $46.49 at the time of writing, up 8.88% for the month.

Let’s take a look at what might be driving this recent investor confidence in Sonic Healthcare.

A merry December for Sonic Healthcare

The Sonic Healthcare share price has been climbing steadily despite no price-sensitive announcements from the company this month.

It did deliver some positive news on 17 December, though. Sonic Healthcare announced it has acquired ProPath, an anatomical pathology company based in Dallas, Texas in the United States.

ProPath will bring additional annual revenue of about $110 million to Sonic Healthcare, along with 50 pathologist staff. The takeover was part of Sonic’s wider plan to combine anatomical pathology and clinical laboratory testing in the US.

Sonic Healthcare’s soaring share price has coincided with a rise in demand for COVID-19 testing and vaccinations in December.

Sonic Healthcare is Australia’s largest private pathology operator with global operations all over the world, including Germany, Switzerland, the UK, Belgium, New Zealand, and the US.

The company tests thousands of people each day for COVID-19 and is also involved in the Australian vaccination program.

Demand for COVID-19 testing for travel has also been on the rise this month. Sonic offers a COVID-19 PCR test for international travel at a cost of $145 per test per person.

Sonic Healthcare is likely on investors’ minds this month due to surging COVID-19 cases and increased demand for testing.

Federal Health Minister Greg Hunt has announced that the minimum interval between COVID-19 double vaccination and booster shots will be reduced to 4 months from 4 January.

A national cabinet agreement to shift the focus to Rapid Antigen Tests (RAT) and redefine the term ‘close contact’ could impact PCR testing demand.

Sonic Healthcare share price recap

The Sonic Healthcare share price has soared 44% in the past 12 months and has climbed 1.24% in the past week.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 14% in the past year.

The company has a market capitalisation of more than $22 billion based on the current share price.

The post Here’s why the Sonic Healthcare share price (ASX:SHL) is up 9% in December appeared first on The Motley Fool Australia.

More reading

• Sonic (ASX:SHL) share price hits 52-week high amid COVID booster change
• ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise
• Top brokers name 3 ASX shares to buy today
• Experts rate these 2 ASX healthcare shares as buys in 2022
• ASX 200 (ASX:XJO) midday update: BNPL shares sold off, Corporate Travel returns

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 Sonic Healthcare 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/32PFGvb

The Global Lithium Resources Ltd (ASX: GL1) share price is surging 6.94% on Friday after the company announced it has completed a new lithium acquisition.

It’s purchased 80% of the Manna lithium project in Western Australia for $33 million.

At the time of writing, the Global Lithium Resources share price is 93 cents. However, that’s lower than it was this morning.

Earlier, the company’s stock was swapping hands for 95 cents apiece. That represents a 9.8% gain and is the highest its been since the company debuted on the ASX in May 2021.

Let’s take a closer look at the latest news from the lithium exploration company.

Global Lithium share price gains on completed acquisition

The Global Lithium Resources share price is in the green on the back of news the company has completed its recently announced acquisition of a majority stake in a second Western Australian lithium project.

The company announced the acquisition on 23 December. Its share price gained 17.4% that same day.

The Manna lithium project is an outcropping pegmatite exploration project. Recent drilling has confirmed a new zone of spodumene-rich pegmatites within its area.

Global Lithium Resources has agreed to pay $33 million to purchase the stake off Breaker Resources NL (ASX: BRB).

Of that, $6.5 million has been paid in cash. Another $6.5 million has been provided by means of new Global Lithium Resources shares.

The other $20 million will be deferred, with $10 million payable upon the announcement of a JORC mineral resource of at least 250,000 tonnes of lithium oxide metal at the project, while the other $10 million is payable when the company produces 100,000 tonnes of lithium oxide from Manna.

Global Lithium Resources chair Warrick Hazeldine commented on the now-finalised acquisition, saying:

Completing the acquisition of the exciting Manna Lithium Project is a fantastic way for the company to close out 2021…

We are looking forward to getting ‘boots on ground’ early in the new year in parallel to commencing our 2022 drilling campaign at the Marble Bar Lithium Project.

Right now, the Global Lithium Resources share price is 233% higher than it was at the start of 2021. It has also gained 50% over the last 30 days.

The post Global Lithium (ASX:GL1) share price hits new 52-week high on acquisition update appeared first on The Motley Fool Australia.

More reading

• Why the Global Lithium (ASX:GL1) share price is surging 12% higher today
• Here’s why the Global Lithium (ASX:GL1) share price leapt today

Motley Fool contributor Brooke Cooper 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/3pG9zqT

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the year with a day in the red. The benchmark index is currently down 0.5% to 7,472.7 points.

Here’s what is happening on the ASX 200 today:

Big four banks slide

The big four banks are under pressure on Friday and are acting as a drag on the ASX 200. All four big banks are trading lower, with the National Australia Bank Ltd (ASX: NAB) share price the worst performer. Its shares are down by over 1% at the time of writing. Despite this, NAB’s shares remain on course to record a gain of 26% in 2021.

Lynas shares fall despite Malaysian update

The Lynas Rare Earths Ltd (ASX: LYC) share price has given back its early gains and is in the red. This is despite providing an after-hours update on its Malaysian operation on Thursday. Lynas advised that the Malaysian permanent disposal facility for Water Leach Purification residue has received environmental approval from the relevant Malaysian regulatory authorities.

Tech shares fall

The tech sector is also having a poor finish to the year. At the time of writing, the S&P/ASX All Technology Index is down 0.7%. Tech shares including Netwealth Group Ltd (ASX: NWL) and Pointsbet Holdings Ltd (ASX: PBH) are among the worst performers in the sector. The latter’s poor form means it is set to record a 39% decline in 2021.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Bega Cheese Ltd (ASX: BGA) share price with a 5% gain. Investors have been buying its shares since Andrew Forrest became a major shareholder this week. The worst performer has been the EML Payments Ltd (ASX: EML) share price with a 2% decline following weakness in the tech sector.

The post ASX 200 (ASX:XJO) midday update: Big four banks fall, Bega Cheese jumps again appeared first on The Motley Fool Australia.

More reading

• Why Bega Cheese, Magnis, Mesoblast, and Neometals shares are pushing higher
• The Lynas (ASX:LYC) share price jumped out the blocks today. Here’s why
• 5 things to watch on the ASX 200 on Friday
• Analysts rate these ASX 200 dividend shares as buys
• Why is the Bega Cheese (ASX:BGA) share price jumping 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 EML Payments, Netwealth, and Pointsbet Holdings Ltd. The Motley Fool Australia owns and has recommended EML Payments and Netwealth. 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.

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

The Neometals Ltd (ASX: NMT) share price is leading the broad indices today and is now 14.94% higher at $1.38.

Neometals shares are catching bids as investors respond positively to a company announcement regarding Primobius, a 50/50 joint venture (JV) owned by Neometals and SMS group GmbH.

Why is the Neometals share price spiking today?

The Neometals share price is soaring after the company advised its JV has executed binding option and licensing agreements with Stelco.

Neometals says Stelco is a wholly owned subsidiary of Stelco Holdings Inc (TSX: STLC), a Toronto Stock Exchange-listed steelmaking company headquartered in Ontario, Canada.

Stelco and Primobius entered into a memorandum of understanding earlier in the year to evaluate future joint lithium-ion battery recycling operations.

The parties worked together towards a significant North American lithium-ion battery recycling business plan and have now entered into binding formal arrangements.

These agreements allow Stelco to accelerate its sourcing of feedstock. Additionally, Primobius may consider equity ownership of a battery recycling special purpose vehicle (SPV) that would be responsible for battery recycling operations.

Specifically, Primobius has exclusively licensed its battery recycling technology to the SPV in the field of end-of-life vehicle battery processing. This move will enable it to “advance commercial battery feedstock sourcing agreements and advance its approvals processes”.

Under a separate option agreement, Primobius can elect to acquire between 25% and 50% equity in the SPV under certain stipulations. In the event the option is not exercised, Primobius will be entitled to a gross revenue royalty.

Neometals says the SPV will “help meet the need for multiple large recycling facilities to manage significant anticipated volumes from end-of-life electric vehicle batteries originating from the world’s fastest-growing cell making jurisdiction”.

Stelco is now in a position to mature its feedstock targeting activities with direct access to a sustainable industrial-scale recycling solution backed by SMS, according to the release.

Management commentary

Speaking on the announcement fuelling the Neometals share price, managing director Chris Reed said:

Neometals is understandably excited by the speed of commercial progress being made by Primobius. We recognise both the need to partner to secure access to large volumes of end-of-life LIB’s to ensure future growth and the present need to recycle significantly growing volumes of production scrap from LIB cell production in the US. Stelco is a leading supplier of steel to the Automotive OEMs and consumes scrap as part of its steel manufacturing process and presents the perfect opportunity for Primobius to enter the North American market as partners.

Reed concluded:

Our 10tpd commercial disposal plant in Germany addresses the needs of the LIB supply chain in Europe and builds our operating expertise as principal, further de-risking and enhancing the value of partnering with Primobius. Our impressive pipeline of development opportunities is reshaping our short-term strategy and we are prioritising market penetration over our ambitions to operate as principal. Primobius’ flexible business models remain as key unique selling points.

The Neometals share price will finish the year well in the green, having climbed 420% in that time. It has also rallied more than 29% in the last month of trading.

The post Neometals (ASX:NMT) share price explodes 15% on battery recycling update appeared first on The Motley Fool Australia.

More reading

• Why Bega Cheese, Magnis, Mesoblast, and Neometals shares are pushing higher
• The Neometals (ASX:NMT) share price is on fire, up 10% today. Here’s why
• Why Betmakers, Centuria, Neometals, and Syrah shares are storming higher
• Why Australian Clinical Labs, Humm, Neometals, and Viva Energy are rising
• Neometals (ASX:NMT) share price jumps on battery recycling update

The author has no positions 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/3pFiBo0

Shares in semiconductor development company 4DS Memory Ltd (ASX: 4DS) opened the session poorly and are now trading 9% down at 9.1 cents apiece at the time of writing.

Investors are driving down the 4DS Memory share price whilst at the same time 4DS responds to an ASX price query regarding the upward movement of its shares in recent times.

For example, over the past 5 days of trading, the 4DS Memory share price has surged by 60%.

Here are the details of this curious situation.

Why is 4DS plunging today?

The ASX wrote to 4DS yesterday requesting a ‘please explain’ on the substantial jump in its share price over the past week.

Specifically, the ASX compliance department asked for clarification on “the change in the price of 4DS’s securities from $0.065 on 24 December 2021 to an intra-day high of $0.105 at the time of writing today”.

This was alongside the “significant increase in the volume of 4DS’s securities traded from 29 December 2021 to 30 December 2021”.

In response to the ASX query, 4DS Memory said it is not aware of any information concerning it, that has not been announced, that could directly explain recent trading patterns.

The company also confirmed that it is in compliance with all of the ASX listing rules. 4DS Memory said it is not aware of any other explanation regarding the increased share price.

The letter also concerned the volume of 4DS Memory shares traded, which has shot up tremendously. Even today, the volume of 4DS shares exchanging hands is 157% of its 4-week average.

Again, the company stated it is unaware of any reason behind this thickly-traded volume over the past 3 days.

Regardless, investors are pulling out in the final session of the year today, sending the shares south at a rapid pace.

4DS Memory share price summary

In the past 12 months, the 4DS Memory share price has fallen by 29%.

But over the shorter term, the share price has exploded by 84% over the past month.

The post 4DS Memory (ASX:4DS) share price plunges 9% amid ASX price query appeared first on The Motley Fool Australia.

More reading

• Why the 4DS Memory (ASX:4DS) share price is charging 8% higher today

The author has no positions 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/3zjWZAT

There is a small group of ASX shares that have performed really strongly for shareholders recently, delivering impressive operational results and market-beating share price growth.

However, whilst it’s possible for some share prices to be good value, it is also possible that some excellent businesses to run ahead too hard.

So, after a strong run, are these two ASX shares worth looking at?

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading healthcare informatics business. It provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups globally. It offers a “clinically rich” and highly scalable cloud platform that can be used for both public and private environments.

The Pro Medicus share price has soared 84% over the last year.

This ASX share has been winning many large contracts with healthcare clients. One of the most recent wins was the 7-year, $40 million contract with Novant Health. Pro Medicus’ Visage software will replace multiple picture archiving and communication systems (PACs).

Novant Health joined an increasing number of Visage clients that are opting for a fully cloud based solution.

Despite winning a number of contracts, Pro Medicus says that its pipeline remains strong in both North America and other regions. FY21 was a big year of growth – revenue rose 19.5% to $67.9 million, underlying profit before tax increased 41% to $42.6 million and the earnings before interest and tax (EBIT) margin improved to 63.2%.

Opinions are somewhat mixed on Pro Medicus. Morgans rates the ASX share as a hold, with a price target of $54.49.

However, Citi thinks Pro Medicus is a sell with a price target of just $45 – that’s almost 30% lower than where it is now. It’s concerned about cheaper competition in the future and that the market is being too bullish about the potential strength of the company’s success.

Aussie Broadband Ltd (ASX: ABB)

This telecommunications business has also had a year strong year. Over the last 12 months it has gone up by 136%.

Aussie Broadband continues to see growth of its broadband user base.

At 30 September 2021 it had 445,780 broadband services. By 30 December 2021 it’s expecting to have at least 482,495 services which includes expected organic net additions of at least 38,000. That’s organic growth of at least 8.5% quarter on quarter.

A recent focus of both analysts and the company has been the expected acquisition of Over The Wire Holdings Ltd (ASX: OTW). This combination is predicted to deliver annual cost synergies of $8 million to $12 million within three years, ongoing capital expenditure savings and significant acceleration of capabilities of the group.

This proposed transaction, which will be funded by both cash and new shares, is expected to add to earnings per share (EPS) on both a pre and post synergy FY21 basis.

Ord Minnett is a fan of the deal, as it would grow the company’s offering into other categories.  It rates Aussie Broadband as a buy, with a price target of $5.91.

Credit Suisse’s price target of $5.40 also offers potential double upside, but the broker is only ‘neutral’ on the business.

Ord Minnett thinks that the Aussie Broadband share price is valued at 34x FY23’s estimated earnings.

The post Are these high-flying ASX shares buys today? appeared first on The Motley Fool Australia.

More reading

• Aussie Broadband (ASX:ABB) share price higher despite guidance downgrade
• Why these 2 ASX shares are top dogs in our fund: expert
• The Pro Medicus (ASX:PME) share price has dropped 8% in 3 days. What’s going on?
• 5 ASX telco shares this expert loves right now
• Here are the top 10 ASX shares today

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 Aussie Broadband Limited, Over The Wire Holdings Ltd, and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Aussie Broadband 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/3EKJN9c