If you’re a fan of small cap shares, then you’re in luck! At present there are a number on the local share market that have been tipped to grow strongly in the future.

Two in the tech sector that could be worth getting acquainted with are listed below. Here’s what you need to know about them:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap tech share to look at is Bigtincan. It is a fast-growing provider of enterprise mobility software. This software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.

Bigtincan has been growing at a strong rate over the last few years thanks to increasing demand for its quality platform. Pleasingly, this positive form has continued in FY 2022. Last month the company revealed a huge jump in cash receipts during the first quarter. Management also confirmed that it remains on track to meet or exceed its annualised recurring revenue (ARR) guidance of $119 million. This includes the benefits of the recent Brainshark acquisition and implies annual growth of at least 124%.

In response, Morgan Stanley retained its overweight rating and $2.10 price target on Bigtincan’s shares.

Nitro Software Ltd (ASX: NTO)

Another small cap tech share that is rated highly is Nitro. It is a fast-growing global document productivity software company aiming to accelerate digital transformation in a world that demands the ability to work from anywhere, anytime, on any device.

Nitro’s cloud-based software allows organisations to drive better business outcomes through 100% digital document processes and fast, efficient workflows. This includes through the increasingly popular Nitro Productivity Platform, which offers comprehensive business solutions, including powerful PDF productivity, unlimited eSigning, and industry-leading analytics.

At the last count, the company had over 2.8 million licensed users and 12,000+ business customers in 155 countries. This includes over 68% of the Fortune 500 and three of the Fortune 10.

Last month the company released its third quarter update and revealed a 50% increase in its ARR. This puts it on course to achieve its ARR guidance of US$39 million to US$42 million in FY 2021. Pleasingly, this is still only a fraction of its estimated total addressable market of $28 billion.

In response to its update, Bell Potter retained its buy rating and lifted its price target to $4.50.

The post 2 exciting small cap ASX tech shares analysts love appeared first on The Motley Fool Australia.

More reading

• Why Life360, Nitro, Reliance Worldwide, and Uniti shares are charging higher
• Bigtincan (ASX:BTH) share price steady amid 218% cash receipts increase
• Why is the Nitro Software (ASX:NTO) share price on the rise on Wednesday?
• 3 stellar ASX tech shares to buy right now
• 2 excellent ASX tech shares tipped for big things

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 shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended Nitro Software 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 Austral Resources Australia Limited (ASX: AR1) share price is plunging lower on the company’s initial public offering (IPO).

The copper producer’s stock hit the ASX for the first time at midday today. Sadly, it promptly dropped 15%.

At the time of writing, the Austral Resources share price is 17 cents, 3 cents a share down from its prospectus‘ offer price of 20 cents.

The dip follows not only the company’s float but also media speculation that Austral is soon to be hit with legal action.

Let’s take a closer look at Austral Resources’ dramatic first day on the ASX.

Austral share price starts out in the red

The Austral Resources share price is tumbling out of the gates amid media reports Austral’s former 51%-owner, Nathan Tinkler, plans to sue the company and its executive director.

Austral Resources responded to the speculation from an unnamed media source 2 hours before its IPO.

The company has confirmed claims Tinkler has threatened legal action against it and its executive director Dan Jauncey.

However, Austral Resources said neither it nor Jauncey has received “substantive documentation or information” on Tinkler’s claims. Additionally, the company believes Tinkler doesn’t have a feasible case against either party.

The company hasn’t disclosed which media outlet its response is aimed at. However, The Australian carried reports of Tinkler’s legal threat yesterday.

According to the publication, Tinkler sold his stake in Austral to Jauncey when copper prices dropped amid the global pandemic. He is now reportedly planning to sue for “shareholder oppression”.   

Whether Tinkler’s potential legal bid is weighing on the Austral share price is impossible to say.

Today’s float represents the end of an oversubscribed $30 million IPO process that, at its offer price of 20 cents, left the company valued at $89 million.

The funds raised will be put towards Austral’s new Anthill Mine and its Mt Kelly processing plant. It will also help fund exploration activities and pay off debt.

Austral expects to be producing 10,000 tonnes of copper anode each year from the middle of 2022.

The post Austral Resources (ASX:AR1) share price tumbles 15% on IPO appeared first on The Motley Fool Australia.

More reading

• Why Bubs, Dalrymple Bay, IAG, and Redbubble shares are dropping
• Here’s why Praemium (ASX:PPS) shares are up 10% on Wednesday
• Top brokers name 3 ASX shares to buy today
• Why AMP, Eclipx, Paradigm, and Praemium shares are surging higher
• Predictive Discovery (ASX:PDI) launches 8% on gold update

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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. At the time of writing, the benchmark index is up 0.8% to 7,385.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 6% to 54.5 cents. Investors have been selling this infant formula company’s shares despite it announcing a key appointment in China. A few investors may be taking profit off the table after some very strong gains in recent weeks.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The Dalrymple Bay Infrastructure share price is down 1% to $2.22. This morning the infrastructure company announced a A$514 million private US placement. According to the release, Dalrymple Bay is raising the funds via fixed rate senior secured notes. The notes will be issued in three tranches of approximately A$185 million, A$215 million and A$114 million, with tenors of 10, 12 and 15 years, respectively.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price has continued its slide and is down a further 1% to $4.45. Investors have been selling this insurance giant’s shares since it downgraded its margin guidance for FY 2022 following a surge in claims. This was driven by recent severe storm across parts of Australia.

Redbubble Ltd (ASX: RBL)

The Redbubble share price is down 4.5% to $3.70. This is despite there being no news out of the ecommerce company. However, it is worth noting that short sellers have been targeting Redbubble. So much so, it is now one of the most shorted shares on the Australian share market. At the last count, over 10% of Redbubble’s shares were in the hands of short sellers.

The post Why Bubs, Dalrymple Bay, IAG, and Redbubble shares are dropping appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Bubs (ASX:BUB) share price dips amid China MD appointment
• 2 ASX shares that could be buys in November 2021
• Why Ingenia, IAG, Vulcan, and Westpac shares are dropping
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks

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 shares of and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended BUBS AUST 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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Shares in investment and financial services company Preamium Ltd (ASX: PPS) are having another splendid day in the green, currently trading 9.82% higher at $1.57.

Whilst there’s been no market-sensitive information out of Praemium’s camp today, it is still in the thick of an acquisition saga that surfaced yesterday.

Read on for more details.

What is Netwealth offering for Praemium?

Today’s gains in the Praemium share price appear to be linked to an announcement the company made yesterday regarding a takeover proposal it had received from Netwealth Group Ltd (ASX: NWL).

Netwealth made the offer as it sees many synergies and benefits both companies can lend to each other.

A merger of the two ASX-listed names would create the largest independent wealth manager in Australia by net flows and be a leading platform for advisors across all segments.

Netwealth had proposed an all scrip deal that would see Praemium shareholders receive one new Netwealth share for every 11.96 shares they held in Praemium’s register.

The deal implies a valuation of $1.50 per share for Praemium’s equity, or an Enterprise Value/EBITDA multiple of 55x, – 15% lower than the company’s current EV/EBITDA multiple of 65x.

Based on these numbers, Netwealth values Praemium as a company at around $785 million, a slight premium to its current non-diluted enterprise value of $774 million.

To put that into further context, on a fully-diluted basis, Praemium’s market capitalisation is currently $718 million, meaning its fully-diluted enterprise value is $707 million at the time of writing.

So why is the Praemium share price charging higher today?

Praemium’s board immediately rejected the offer, as it undervalued the company’s operations, and advised its shareholders to adopt the same mantra.

The board feels the deal is not in the best interests of its shareholders, nor does it appropriately value the company’s market-leading position and superior technology.

It was quoted as saying that the deal fails to consider the “significant valuation upside available to shareholders, given Praemium is valued at a discount to industry peers Hub24 and Netwealth” in some measures.

On news of the rejection, Praemium shares turned sharply to close almost 15% higher yesterday, as investors were quick to pile into positions perhaps in hope of a sweetened deal from Netwealth.

Praemium’s decision to reject the offer based on valuation grounds also is a vote of confidence for the market, as it implies the company reckons there is more value to be created for its shareholders looking ahead.

In contrast, Netwealth shares fell quickly yesterday, and have carried the losses over into today’s session, where they are currently trading at $17 and change.

Praemium share price snapshot

The Praemium share price has continued to climb into the green these past 12 months, having gained 129% in that time after rallying a further 136% this year to date.

Prameium shares have rallied 46% this last month alone, whilst climbing another 31% in the past week.

These return profiles have outpaced the benchmark S&P/ASX 200 Index (ASX: XJO) across each of the time frames.

The post Here’s why Praemium (ASX:PPS) shares are up 10% on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why AMP, Eclipx, Paradigm, and Praemium shares are surging higher
• Why is the Praemium (ASX:PPS) share price 15% higher on Tuesday?
• Why Goodman, Praemium, Step One, and Telix shares are charging higher
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• Netwealth (ASX:NWL) share price drops on Praemium merger proposal

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth and Praemium Limited. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended Praemium 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Goodman Group (ASX: GMG)

According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this integrated property company’s shares to $26.45. This follows the release of Goodman’s first quarter update, which revealed an increase in its FY 2022 operating earnings guidance to 15% from 10%. Macquarie remains confident its strong form can continue thanks to structural tailwinds and its development pipeline. The Goodman share price is trading at $23.74 today.

Insurance Australia Group Ltd (ASX: IAG)

A note out of Morgans reveals that its analysts have retained their add rating but cut their price target on this insurance giant’s shares to $5.35. Morgans has downgraded its earnings estimates to reflect higher than expected claims costs. While this is disappointing, the broker remains positive on IAG due to premium increases and its attractive valuation. The IAG share price is fetching $4.43 on Wednesday.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have retained their buy rating but trimmed their price target on this big four bank’s shares to $27.50. This follows the release of the bank’s full year results for FY 2021. While the broker was disappointed with Westpac’s weaker than expected net interest margin (NIM) and higher than expected costs, it remains positive on the investment opportunity here. Citi feels that Westpac’s shares are cheap at the current level. The Westpac share price is trading at $23.29 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why is the Goodman Group (ASX:GMG) share price up 9% so far this week?
• What these leading brokers are saying about the Westpac (ASX:WBC) share price
• Here are the top 10 ASX shares today
• Westpac (ASX:WBC)’s had a shocker: This is when to buy
• Here are the 3 most heavily traded ASX 200 shares so far on Tuesday

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 shares of 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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1% to 7,398.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are surging higher:

AMP Ltd (ASX: AMP)

The AMP share price is up 8% to $1.16. Investors have been buying this financial services company’s shares after it announced the divestment of its 19.13% equity interest in Resolution Life Australasia (RLA). AMP is selling the stake to Resolution Life Group for $524 million. Doing so completes its exit from its former life insurance and mature business, AMP Life, and provides further flexibility ahead of its planned demerger of AMP Capital’s Private Markets business.

Eclipx Group Ltd (ASX: ECX)

The Eclipx share price is up 3.5% to $2.52 following the release of its full year results. In FY 2021, the salary packaging and fleet management company delivered a 3.9% decline in revenue to $648.06 million but a 156% jump in cash earnings to $86.15 million. The latter was driven by strong end-of-lease income and margin expansion.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

The Paradigm share price has jumped 26% to $2.59. Investors have been fighting to get hold of the biopharmaceutical company’s shares after the US FDA approved its investigational new drug (IND) application to proceed with a phase 3 trial. That trial aims to evaluate injectable pentosan polysulfate sodium (PPS/Zilosul) for the treatment of pain associated with knee osteoarthritis.

Praemium Ltd (ASX: PPS)

The Praemium share price has jumped 10% to $1.57. This follows speculation that this investment platform provider could soon receive another takeover approach. On Tuesday, Praemium received a $1.50 per share merger offer from Netwealth Group Ltd (ASX: NWL). However, the Praemium Board rejected the offer, believing it undervalued the company.

The post Why AMP, Eclipx, Paradigm, and Praemium shares are surging higher appeared first on The Motley Fool Australia.

More reading

• Eclipx (ASX:ECX) share price leaps on 156% increase in cash profits
• AMP (ASX:AMP) share price leaps 9% on life insurance sale
• ASX 200 (ASX:XJO) midday update: CBA enters crypto market, AMP jumps
• Paradigm (ASX:PAR) share price shoots 30% higher on FDA update
• AMP (ASX:AMP) share price on watch following $500m divestment

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

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Shares in Australian gold miner Predictive Discovery Limited (ASX: PDI) are lifting today to now change hands 8% higher at 20 cents apiece.

Predictive Discovery shares have been on the move following a company announcement on its Bankan Gold Project in Guinea.

Here are the details.

What was announced?

Predictive advised that it has extended the high-grade zone of its gold resource “50 metres below the US$1,800/oz optimised mineral resource pit shell” at its Bankan project.

The Bankan project is located in northeast Guinea, in West Africa. It covers 356 square kilometres in area across four permit zones.

One of the permits is a joint venture with local company Argo Mining SARLU, while the other three are wholly owned by Predictive Discovery and/or its subsidiaries.

It was back in September that the company announced its mineral resource estimate, “all for a very low resource discovery cost of $4/oz” at the site.

Now, in only 17 months since inception, the company has completed more than 53,000 metres of RC and diamond drilling on the Bankan project.

From today, the announcement notes that diamond drilling is ongoing at the Bankan site with “two multipurpose drill rigs currently drilling holes at depts between 80 metres and 130 metres below [the pit shell]”.

The extension drilling of the high-grade zone continues to potentially add to the company’s maiden inferred resource of 72.8 million tonnes, averaging 1.56g/t Au for 3.65 million ounces of gold.

This comes as “more than 90% of the Bankan project [remains] untested by any drilling”.

Speaking on the announcement, Predictive Discovery managing director Paul Roberts said:

These new results have confirmed the Company’s belief that, as the shear zone is intercepted below the optimised Resource pit shell, the high-grade mineralised zone continues to depth. With every new high-grade intersection below the existing open pit shell, the underground potential becomes clearer. NE Bankan shares the best qualities of tier-1 deposits, namely outstanding grades and widths combined with excellent mineralisation continuity.

What’s next for Predictive Discovery?

Diamond drilling is ongoing at the site with two multipurpose rigs currently in place. Both rigs are now drilling holes between 450 metres to 500 metres below the Earth’s surface to explore for deeper extensions to the gold zone.

Results are still pending from more diamond drilled holes beneath the pit shell described earlier.

The company reckons this has the potential to extend the high-grade gold zone further, according to the announcement.

Predictive Discovery share price snapshot

It’s been a year of outsized returns for the Predictive Discovery share price, having climbed 233% in the last 12 months after rallying 227% this year to date.

Despite this, it has fallen 9% into the red in the past month but is still well ahead of the S&P/ASX 200 Index (ASX: XJO)’s gain of around 22% in the last year.

The post Predictive Discovery (ASX:PDI) launches 8% on gold update appeared first on The Motley Fool Australia.

More reading

• Predictive Discovery (ASX:PDI) share price leaps 15% following sell-off
• Why Ansell, Predictive Discovery, Strike Energy, & Zip shares are sinking
• Why the Predictive Discovery (ASX:PDI) share price is crashing 34% today
• Why the Predictive Discovery (ASX:PDI) share price is in a trading halt
• Why is the Predictive Discovery (ASX:PDI) share price falling today?

The author Zach Bristow 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.

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Over the past month, the S&P/ASX 200 Index (ASX: XJO) has given investors a reasonably solid performance. Since market open on 4 October, the ASX 200 has gained a robust 3%. But one ASX exchange-traded fund (ETF) has done a few better. The BetaShares Global Cybersecurity ETF (ASX: HACK) has managed to add more than 7% to its value over the same period.

Yes, since 4 October, the HACK ETF has put on an impressive 7.27%, including the healthy 1.5% it’s managed today so far. That’s almost triple the broader market.

So what’s gone so right for this ASX ETF?

Why has the BetaShares Global Cybersecurity ETF HACKed such a good month?

Well, to answer that question, let’s check out this ETF’s top holdings. So the BetaShares Cybersecurity ETF tracks the performance of the Nasdaq Consumer Technology Association Cybersecurity Index. This aims to provide “exposure to the leading companies in the global cybersecurity sector.”

So let’s check out which companies this ETF’s portfolio is currently most heavily invested in, as of 2 November:

1. Palo Alto Networks Inc (NYSE: PANW) with a portfolio weighting of 6.3%
2. Accenture plc (NYSE: ACN) with a weighting of 6.1%
3. Cisco Systems Inc (NASDAQ: CSCO) with a weighting of 5.6%
4. Okta Inc (NASDAQ: OKTA) with a weighting of 5.5%
5. Crowdstrike Holdings Inc (NASDAQ: CRWD) with a weighting of 5.4%
6. Cloudflare Inc (NYSE: NET) with a weighting of 4.5%
7. Tenable Holdings Inc (NASDAQ: TENB) with a weighting of 3.4%
8. Zscaler Inc (NASDAQ: ZS) with a weighting of 3.3%
9. F5 Networks Inc (NASDAQ: FFIV) with a weighting of 3.1%
10. Cyberark Software Ltd (NASDAQ: CYBR) with a weighting of 3.1%

So the shares with the most weighting (and thus influence) in the HACK ETF are Palo Alto, Accenture, Cisco, Okta and Crowdstrike. Together, these companies make up 28.9% of this ETF’s portfolio. So let’s see how they’ve performed over the past month.

Since 4 October, Palo Alto shares are up a healthy 8.3%.

Accenture shares are up 13.15%.

Cisco has enjoyed gains of 6.25%.

Okta is up 12.8%.

And Crowdstrike has managed 12.2% in gains.

So with the top shelf of HACK’s portfolio enjoying such a successful month, it’s perhaps no surprise that this ETF’s pricing has commensurately appreciated.

But investors in this ETF might be used to outperformance by now. Since its inception in August 2016, the HACK ETF has averaged an annual gain of 22.47%. Over the past year alone, investors have enjoyed a gain of 39.26%.

The BetaShares Global Cybersecurity ETF charges a management fee of 0.67% per annum.

The post Why has the BetaShares Global Cybersecurity ETF (ASX:HACK) share price leapt 7% in a month? appeared first on The Motley Fool Australia.

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• Why did the Zip (ASX:Z1P) share price have such a lousy month in October?
• ASX 200 (ASX:XJO) midday update: CBA enters crypto market, AMP jumps
• Why is the Northern Star (ASX:NST) share price having such a lousy week?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today

Motley Fool contributor Sebastian Bowen owns shares of Cloudflare, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS, Cloudflare, Inc., and CrowdStrike Holdings, Inc. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. 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 AVZ Minerals Ltd (ASX: AVZ) share price is marching higher again today. The ASX lithium share is up 3.66% in early afternoon trade, to 42.5 cents per share.

That puts the AVZ Minerals share price up 21% since the closing bell last Wednesday, 27 October.

Below we look at what helped drive shares higher over the week.

Booming lithium demand and project upgrades

The AVZ Minerals share price is subject to many forces.

One of the likely tailwinds the ASX lithium explorer has enjoyed is the booming demand and growth outlook for lithium.

As The Motley Fool reported last week, Tesla Inc (NASDAQ: TSLA) leapt past the psychologically important US$1 trillion market capitalisation milestone. That followed global car rental company Hertz announcing its plans to purchase 100,000 Teslas.

That news likely stirred investor bullishness on the outlook for lithium shares, with many ASX and globally-listed lithium explorers posting solid gains. The AVZ Minerals share price closed up 5.8% on 28 October.

The AVZ share price really got a boost this Monday. This followed the afternoon release of the company’s quarterly report on Friday, with its shares finishing Monday up 11.3%.

Among the highlights of the quarter, AVZ signed Suzhou CATH Energy Technologies as a cornerstone investor to develop its Manono Lithium and Tin Project, located in the Democratic Republic of Congo.

Commenting on the partnership AVZ managing director, Nigel Ferguson said:

The cornerstone investor deal with CATH marked one of the most significant days in our company’s short history and clearly indicated to the world how important our Manono Lithium and Tin Project is…

The deal with CATH will fund a significant portion of the total required project financing, whilst AVZ maintains a controlling 51% interest in the Manono Project and our position as lead developer. The deal also provides significant opportunities to advance other downstream projects, providing an exciting future for AVZ shareholders.

AVZ Minerals also completed a $40 million capital raising and upgraded its Manono JORC Proved and Probable Ore Reserves Estimate to 131.7 million tonnes. That was up 41.6% from what was reported in the definitive feasibility study (DFS) in April 2020.

AVZ Minerals share price snapshot

Over the past 12 months, the AVZ Minerals share price has left the All Ordinaries Index (ASX: XAO) in the dust. Over the full year, AVZ Minerals shares are up a whopping 490% compared to a gain of 23% posted by the All Ords.

AVZ Minerals has continued to outperform, with its share price up 26% since this time last month.

The post How has the AVZ Minerals (ASX:AVZ) share price leapt 21% in a week? appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are surging higher on Tuesday
• Why ASX lithium shares are booming on Thursday
• How did ASX lithium shares perform in the FY22 first quarter?

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 certainly was an eventful month for the A2 Milk Company Ltd (ASX: A2M) share price in October.

The embattled infant formula company’s shares ended the month one cent higher than where they started it at $6.25. However, that is only part of the story.

What happened to the A2 Milk share price in October?

The A2 Milk share price certainly was on a rollercoaster ride last month.

It was down as much as 7% month to date, then stormed higher to be up as much as 19% for the month, before ending the period broadly flat.

Investors were bidding the A2 Milk share price higher in the middle of October following the release of an update out of junior infant formula company Bubs Australia Ltd (ASX: BUB).

Like A2 Milk, Bubs has been struggling in recent quarters. This was due to disruption in the daigou channel, the increasing popularity of domestic infant formula brands in China, and subdued demand.

However, the company returned to form during the first quarter of FY 2022, reporting a strong increase in sales (albeit from a small base). The majority of Bubs’ growth came from channels relating to the China market. This sparked hopes that the worst was now behind A2 Milk.

However, the A2 Milk share price quickly gave back those gains following the release of its investor update late on in the month.

What was the update?

A2 Milk’s investor update laid out its expectations for the coming years. And as you may have guessed from the A2 Milk share price reaction, the next few years are not going to be as positive as many were hoping.

The company has set itself a medium term (≥ 5 years) target of growing its sales to NZ$2 billion. While this is a big increase on FY 2021’s COVID-impacted sales of NZ$1.2 billion, it is only a modest increase on FY 2020’s pre-COVID sales of NZ$1.73 billion.

In addition, management revealed that its EBITDA margins will “probably” be in the teens in the medium term due to expected market conditions, investments, and innovation. This is significantly weaker than FY 2020’s EBITDA margin of 31.7%.

Management also warned that there was still some uncertainty with these growth targets. It said that “because of these uncertainties and the range of potential outcomes, it is very difficult to define future state targets and when they will be achieved – the path is also unlikely to be linear.”

Where next for A2 Milk shares?

Opinion is largely divided on where the A2 Milk share price will go from here.

The bulls at Bell Potter have a buy rating and $7.70 price target on its shares, whereas the bears at Macquarie have an underperform rating and $5.20 price target. This compares to the current A2 Milk share price of $6.26.

Time will tell which broker makes the right call.

The post October was a rollercoaster month for the A2 Milk (ASX:A2M) share price appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to sell today
• Is the A2 Milk (ASX:A2M) share price a buy after the selloff?
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• Why A2 Milk, Codan, EOS, and Woolworths shares are sinking

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 A2 Milk and BUBS AUST 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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