The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has been on the move throughout this month. This comes despite Australia’s largest airport operator not releasing any market sensitive news over the last few weeks.

At Monday’s market close, Sydney Airport shares finished the day 0.12% higher to $8.28. While it edged slightly above yesterday, this brings the company’s shares to register a 4% gain in September.

What’s driving Sydney Airport shares higher this month?

Investors have been sending the Sydney Airport share price higher following a number of takeover offers and international travel resumption.

It all started back in July when Sydney Airport advised that a consortium of infrastructure investors proposed a $22.6 billion all-cash transaction to buy Australia’s largest airport.

The deal offered $8.25 per share, which represented a 42% premium on the company’s shares at the time.

However, the Sydney Airport board knocked back the proposal just two weeks after. It stated that the offer undervalues the company and is not in the best interest of shareholders.

A revised conditional and non-binding proposal soon followed a month later (16 August), sweetening the deal. The consortium of infrastructure investors tabled an improved $8.45 per share offer. Yet again, the board declined, noting that the current COVID-19 environment does not reflect Sydney Airport’s long-term value.

Then on 13 September, another offer arrived, upping the ante to $8.75 per share to acquire 100% of Sydney Airport shares. As such, the board appeared satisfied and allowed the consortium to conduct due diligence on a non-exclusive basis.

This means that the buyer will have access to Sydney Airport’s financial books to construct a binding proposal. Usually, due diligence takes around 4 weeks to complete, therefore leaving the finish date around mid-October.

International travel resumption

Another catalyst for Sydney Airport shares rising is the anticipated return of international travel.

Australia’s accelerated vaccination program is on track, with international borders opening up to selected countries in December. It appears investors are optimistic, preparing for a strong return on the travel sector.

In addition, the United States is set to lift travel restrictions for fully-vaccinated passengers from 33 countries in November. In hindsight, this means that the rest of the world is also opening up, with Norway and Denmark taking lead.

Sydney Airport could see passengers fill its terminals very shortly should there be no sudden new deadly variants like Delta.

Sydney Airport share price snapshot

Since the start of July, Sydney Airport shares accelerated on the back of several takeover offers received by the company. At current, its shares are hovering more than 40% above from 2 July (trading day prior to announcement).

Sydney Airport presides a market capitalisation of roughly $22.3 billion, with approximately 2.7 billion shares on hand.

The post September has been a good month so far for the Sydney Airport (ASX:SYD) share price appeared first on The Motley Fool Australia.

More reading

• Why the embattled AGL (ASX:AGL) share price is surging higher today
• Sydney Airport (ASX:SYD) share price struggles amid latest takeover blow
• APA Group (ASX:APA) share price jumps on strong support for its takeover bid
• Why the Transurban (ASX:TCL) share price just got upgraded by a leading broker
• Sydney Airport (ASX:SYD) board recommends revised takeover proposal. What could this mean for shareholders?

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/3AIFM3Y

The underperforming Collins Foods Ltd (ASX: CKF) share price could soon play catch up after a leading broker upgraded the stock to “buy”.

Shares in the KFC franchisee surged 4.8% to $12.17 in morning trade when the S&P/ASX 200 Index (Index:^AXJO) fell 0.5%.

But even with today’s gain, the Collins Foods share price is still only up a modest 13% over the past year.

In contrast, the Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price nearly doubled and the ASX 200 rallied 24% over the period.

Broker upgrade gives Collins Foods share price a boost

But the analysts at Macquarie Group Ltd (ASX: MQG) is urging investors to put the Collins Foods share price back on the menu.

The broker upgraded its recommendation on the Collins Foods share price to “outperform” with a target price of $12.50 a share.

Industry feedback and data sourced from other parties suggest that KFC is winning market share in the quick service restaurant (QSR) space, noted Macquarie.

Playing chicken with pizza

“Growth of chicken category is now ahead of pizza, which has seen momentum slow in recent months,” said Macquarie.

“Online traffic winners include chicken retailers – KFC (+7%), Nando’s (+16%), Red Rooster (+21%) – GYG (+112%) and Taco Bell (+58%).

“Both Domino’s Pizza & McDonalds have since traffic decline over this period and have lost market share.”

Other reasons to be bullish on the Collins Foods share price

But there are three other reasons behind Macquarie’s upgrade of the Collins Foods share price.

It pointed to a recovery in the QSR market with total online traffic increasing 3.4% since the start of the calendar year. It’s still down 2% from pre-pandemic levels, but Macquarie reckons the worst is over and single-digit gains are likely to persist.

Further, the surge in popularity of food aggregators like Menulog, owned by Just Eat Takeaway.com NV – ADR (NASDAQ: GRUB), bode well for Collins Foods. Traffic for these aggregators have jumped by 56% since January this year.

“We note that Menulog now has ~2x the online traffic of Domino’s Pizza,” said Macquarie.

“CKF is well placed to benefit from this trend. Its digital offering is available across ~80% of its network via Deliveroo, Menulog, and DoorDash.”

Big app-etite

Fourthly, the KFC mobile app has been the second most downloaded app since the start of the pandemic. It’s averaging 120,000 downloads a month.

The KFC app is also the second-most actively used QSR app in Australia behind McDonald’s Corp (NYSE: MCD).

Macquarie noted that the KFC app has a penetration rate of around 14% – more than twice the industry average.

The post Why the Collins Foods (ASX:CKF) share price is surging higher today appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares that could be buys for dividends
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts today
• Woolworths (ASX:WOW) and Coles (ASX:COL) could face a margin shock

Motley Fool contributor Brendon Lau owns shares of Macquarie Group 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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Collins Foods Limited and Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

Everyone is talking about Fortescue Metals Group Limited (ASX: FMG) shares right now. The Aussie iron ore miner has had a volatile year on the markets but now boasts a more than healthy dividend yield.

Income-minded investors might be wondering what the ASX resources share could bring in terms of passive income.

Can Fortescue shares deliver long-term passive income?

Shares in the Aussie iron ore giant have slumped 36.5% lower year to date to $15.75 per share. That steep share price decline, coupled with bumper iron prices throughout FY2021, have helped propel Fortescue’s dividend yield higher.

In fact, the iron ore miner’s shares are trading at a 22.7% yield right now. Perhaps even more surprisingly, Fortescue is trading at a price to earnings (P/E) ratio of just 3.45.

Investors can sometimes fall into the trap of chasing the hottest stock of the day and extrapolating its success to future earnings.

However, calculating passive income based on boom and bust resources shares can be a risky business. Fortescue shares look so attractive right now because of the recent doubling of its dividends compounded by the recent share price declines.

That means investors need to be looking at more than just chasing dividends for long-term stability. It’s a common misnomer that ASX dividend shares are more stable or better for delivering long-term passive income than selling shares.

However, while Fortescue shares might be paying a handy dividend in FY2021, there’s no guarantee this will continue into FY2022. Investors planning long-term passive income streams may not be so keen on volatility in resources shares like Fortescue.

But that’s not to say that resources shares don’t have a place in well-diversified portfolios. Many investors like the upside that a company like Fortescue can bring when the good times are rolling.

Foolish takeaway

Fortescue shares are trading at a monster dividend yield right now. However, it’s worth noting that’s due to the dual impacts of a falling share price amid concerns over China’s steel production caps coupled with strong recent iron ore pricing.

The post Can Fortescue (ASX:FMG) shares deliver long-term passive income? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why AVZ, Flight Centre, Fortescue, & Sigma shares are storming higher
• Fortescue (ASX:FMG) share price rallies 5% as iron ore climbs
• ASX 200 (ASX:XJO) midday update: Fortescue jumps, Wesfarmers dealt takeover blow
• Here’s why the Fortescue (ASX:FMG) share price is down 11% in a week

Motley Fool contributor Ken Hall 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/3oa23nW

With a new month upon us, now could be a good time to look at making some new additions to your portfolio.

If you’re interested in growth shares, then you may want to look at the two tech shares listed below. Here’s what you need to know about these highly rated shares:

Nitro Software Ltd (ASX: NTO)

The first ASX tech share to look at for October is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world via its Nitro Productivity Suite. This product provides integrated PDF productivity and electronic signature tools to customers. Thanks to the quality of its software and the global shift to remote and digital work, demand for Nitro’s offering has been growing very strongly. So much so, the company reported a 56% increase in its annualised recurring revenue (ARR) to US$33.8 million during the first half of FY 2021.

The team at Bell Potter expect this strong form to continue. Particularly given its increased sales staff and the commencement of charging for eSigning.

The broker currently has a buy rating and $4.00 price target on its shares.

Zip Co Ltd (ASX: Z1P)

Another ASX tech share to consider for October is Zip. It is of course one of the world’s leading buy now pay later (BNPL) providers with growing operations across several countries. It has also just made a big new investment in the Indian market. Zip’s US$50 million investment in ZestMoney is structured in a similar way to the one that ultimately led to the highly successful acquisition of QuadPay in the United States. And given that the Indian BNPL market is tipped to be worth US$300 billion+ by FY 2026, this could prove to be another astute move by management.

In addition, the company recently announced a range of new products. These include savings accounts, rewards, and even crypto trading and transacting. Combined with the rapid growth of BNPL globally, Zip’s long term growth outlook appears very positive.

One broker that is particularly positive on the company’s outlook is Morgans. It has an add rating and $8.87 price target on Zip’s shares.

The post 2 fantastic ASX tech shares to buy in October appeared first on The Motley Fool Australia.

More reading

• Why the Zip (ASX:Z1P) share price up 13% in the last week
• Is the Zip (ASX:Z1P) share price good value?
• These are the 10 most shorted ASX shares
• When was the worst ever day on the Zip (ASX:Z1P) share price chart?
• Fund managers are buying these ASX shares

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 ZIPCOLTD 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.

from The Motley Fool Australia https://ift.tt/3m1nEMJ

It has been a very disappointing month for the BlueBet Holdings Ltd (ASX: BBT) share price.

Since this time last month, the sports betting company’s shares have shed 30% of their value.

However, it is worth noting that BlueBet’s shares are still up 72% since its IPO in July.

Why is the BlueBet share price sinking?

Investors have been selling down the BlueBet share price amid concerns over its expansion into the massive US markets.

At the end of August, the company revealed that it had missed out on one of the 10 licenses made available in the state of Arizona.

Just a few days later BlueBet advised that it has also missed out on one of the five licenses for the state of Virginia.

While Bluebet was not deemed ineligible for either state, its application simply wasn’t strong enough compared to other applicants. In respect to Virginia, the company was advised that licenses were granted to operators which had experience in other states and equity interests owned by minority individuals or minority-owned businesses.

The company has a number of other states that it is now targeting. However, it is unclear whether it will be a similar story with those applications and the uncertainty is weighing on the BlueBet share price.

Is this a buying opportunity?

The team at Morgans remains positive on the BlueBet share price despite its license disappointment.

A note from earlier this month reveals that the broker has retained its add rating but trimmed its price target to $2.57.

Based on the current BlueBet share price, this implies potential upside of 31% for its shares over the next 12 months.

However, its analysts suspect that BlueBet may need some positive license news to cause a re-rating of its shares. As a result, investors may need to be patient with this one.

The post The Bluebet (ASX:BBT) share price is down 30% in a month. What’s going on? appeared first on The Motley Fool Australia.

More reading

• Why the BlueBet (ASX:BBT) share price has lost 8% in a week
• 2 growing small cap ASX shares to watch
• Why AnteoTech, BlueBet, Flight Centre, & Mosaic Brands are racing higher
• Why BlueBet, Fortescue, Hansen, & Pro Medicus shares are sinking
• BlueBet (ASX:BBT) share price drops 14% on US blow

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 BlueBet 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/3mavLqq

The Anteotech Ltd (ASX: ADO) share price has been soaring over the last 30 days on the back of numerous announcements.

Over last month, the company has signed 3 distribution agreements and submitted its SARS-CoV-2 Antigen Rapid Diagnostic Test to the Therapeutic Goods Administration (TGA) for approval.

Additionally, one of Anteotech’s directors indirectly purchased shares in the company recently.

The Anteotech share price finished yesterday’s session trading for 27.5 cents, 3.77% higher than its previous close and 57% higher than it was this time last month.

Let’s take a closer look at what’s been driving the research and development-focused company’s share price on the ASX lately.

The month that’s been for Anteotech

The Anteotech share price has recently been bolstered by a series of good news.

The last 30 days started out quiet for Anteotech before it began releasing a slew of news from early September.

First up, the company announced it had signed a distribution agreement that would see its EuGeni Reader Platform and SARS-CoV-2 Antigen Rapid Diagnostic Test available in Turkey.

The EuGeni Reader Platform is a rapid point-of-care testing device and the company’s COVID-19 antigen rapid tests are the first test available for use with the platform.

Anteotech signed another distribution agreement for EuGeni last fortnight. Under the second agreement, the platform and rapid COVID-19 tests will be distributed in Cyprus and Greece.

It hasn’t all been positive though. Last Tuesday wasn’t a great day for the Anteotech share price. It fell 12% despite one of the company’s directors indirectly purchasing 250,000 shares in Anteotech for between 22.5 cents and 23.5 cents apiece.

A director buying into a company’s stock is often seen as proof they have confidence in its ability to grow. However, Glenda McLoughlin’s purchase was completed on either 16 September or 17 September and announced on 21 September. Between 16 September and the ASX’s close on 20 September the Anteotech share price gained 38%. That made McLoughlin’s purchase price miniscule.

Finally, Anteotech announced it had submitted EuGeni and its COVID-19 antigen rapid tests for TGA approval last week. If it gets approval, the system will be able to be sold and used in Australia.

It also signed a distribution agreement that will see the platform available in Romania.

Anteotech now has distribution agreements for EuGeni in place in 14 countries.  

Anteotech share price snapshot

It goes without saying the last 30 days have been good for the Anteotech share price.

The company’s stock has also gained 150% since the start of 2021. It is also 243% higher than it was this time last year.

The post The Anteotech (ASX:ADO) share price is up 57% in a month. Here’s why. appeared first on The Motley Fool Australia.

More reading

• AnteoTech (ASX:ADO) share price soars 7% on news of rapid COVID-19 test
• Why Afterpay, AnteoTech, Cettire, & Vulcan shares are storming higher
• These 3 ASX Healthcare shares have surged over 10% today
• Why the AnteoTech (ASX:ADO) share price is advancing 9% today
• Why Anteotech, API, Myer, & Whitehaven Coal shares are charging higher

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/3oeg3Nm

Whether you’re a shareholder or just watching on the sidelines, the Zip Co Ltd (ASX: Z1P) share price has likely been a frustrating experience for everyone.

Zip has steadily trended lower this year, consistently making lower highs and lower lowers since mid-February. It briefly hit a year-to-date low of $6.06 on 21 September, likely influenced by the broad-based selling taking place as a result of China’s Evergrande crisis.

Encouragingly, the Zip share price has managed to stay out of trouble lifting 13.3% to $7.23 in the last five trading sessions.

What’s driving the Zip share price?

BNPL sector holding up

On the big end of town, the Afterpay (ASX: APT) share price has managed to hold up after Square’s massive $39 billion takeover offer. Afterpay shares are not far off a 6-month high, closing at $129.53 on Monday.

On the more speculative side, stragglers such as Openpay Group Ltd (ASX: OPY), Splitit Ltd (ASX: SPT) and Laybuy Holdings Ltd (ASX: LBY) have finally stopped free-falling, bouncing off recent year-to-date lows.

Over on Wall Street, the Affirm Inc (NASDAQ: AFRM) share price has surged 89% since 27 August, after the company posted an upbeat fourth quarter earnings result and inked a deal with Amazon.

The more upbeat performance across the BNPL sector is likely good news for the Zip share price.

Zip enters India

Zip announced its entry into India via a strategic US$50 million investment in India-based BNPL provider, ZestMoney.

According to the release, ZestMoney is one of the largest BNPL platforms in India with 11 million registered users and over 10,000 online merchants.

Chief Executive of ZestMoney, Lizzie Chapman said that she strongly believes that India will emerge as the world’s largest BNPL market in the next five years.

Similarly, Zip said that India “has the potential to become one of the largest markets globally and by FY2026 is forecast to have US$300bn.”

The Zip share price rose 4.33% to $6.51 on the day of the announcement.

The post Why the Zip (ASX:Z1P) share price up 13% in the last week appeared first on The Motley Fool Australia.

More reading

• Is the Zip (ASX:Z1P) share price good value?
• These are the 10 most shorted ASX shares
• When was the worst ever day on the Zip (ASX:Z1P) share price chart?
• Why Zip (ASX:Z1P) and these growth shares could be buys
• Why the Zip (ASX:Z1P) share price is up 11% in 2 days

Motley Fool contributor Kerry Sun 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 AFTERPAY T FPO, Affirm Holdings, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

There are a group of ASX shares that may be options to look at because of their current valuations, according to brokers.

Businesses that are well-liked by multiple brokers could be an opportunity staring investors in the face. But it could also mean that all of those brokers are wrong at the same time.

Multiple analysts have said the below two businesses are ones that could be opportunities:

Credit Corp Group Limited (ASX: CCP)

Credit Corp is a large debt collector that’s operating in both Australia and the USA. It also has a lending division in Australia and New Zealand.

The business is currently rated as a buy by at least three different brokers, including Morgans which has a price target on the business of $33.75.

In FY21, Credit Corp saw a near-record investment outlay driven by the purchased debt ledger (PDL) acquisition from Collection House Limited (ASX: CLH) and a return to lending, despite a COVID-induced temporary reduction in PDL supply.

The ASX share said that FY22 started off well, with a record July contracted purchasing pipeline. The month on month charge-off volumes were also starting to grow.

Overall, the FY21 profit was driven by the US performance. Total revenue fell 1%, but ANZ debt buying profit increased 11% to $54.1 million and US debt buying profit more than doubled to $17.7 million. That helped total profit grow 11% to $88.1 million.

In FY22, Credit Corp is expecting to generate net profit after tax of between $85 million to $95 million, with PDL acquisitions of between $200 million to $240 million.

Based on Morgans’ numbers, the Credit Corp share price is valued at 22x FY22’s estimated earnings.

FINEOS Corp Holdings PLC (ASX: FCL)

FINEOS describes itself as a global company providing software to the employee benefits, life, accident and health industry. It offers clients purpose-built products. One of its offerings is called AdminSuite which takes care of new business, billing, claims, absence and policy administration, which enables “improved operational efficiency, increased effectiveness and excellent customer care.”

It’s currently rated as a buy by at least three brokers, including Citi, which has a price target on the ASX tech share of $5.22. After a recent capital raising, Citi thinks the company is well funded to put some of the capital to work in its current business, as well as trying to find other potential businesses to buy.

In FY21, FINEOS generated €108.3 million of revenue, up 23.3%. It also saw 23% of gross profit growth to €72 million.

In FY22, the ASX share is expecting revenue to be in the range of €125 million to €130 million, with subscription revenue anticipated to grow by around 30%. It’s expecting to be successful with its pipeline of cross-selling and up-selling opportunities with existing clients and new wins.

At the time of the capital raising, FINEOS CEO Michael Kelly said:

Following a strong FY21 result, FINEOS continues to execute on its strategic priorities and invest in further product development and recent acquisition integrations. Our growth expectations for FY22 are underpinned by a pipeline of cross-sell and up-sell opportunities with existing clients in addition to new name opportunities. The equity raising ensures FINEOS has the balance sheet strength and financial flexibility to aggressively pursue those opportunities and accelerate growth.

The post These 2 ASX shares could be good opportunities appeared first on The Motley Fool Australia.

More reading

• The Anteotech (ASX:ADO) share price is up 57% in a month. Here’s why.
• Why the Zip (ASX:Z1P) share price up 13% in the last week
• 2 top ASX growth shares that might be worth buying
• The AMP share price is up 6% in a week, here’s why
• Australian Clinical Labs (ASX:ACL) share price on watch following profit upgrade

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. 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/3icSO2i

ASX growth shares may have the potential to deliver good returns over the coming years because of how quickly the underlying business is expanding.

It’s possible that some businesses can be overpriced for the growth that they are expected to create, so investors shouldn’t pay any price for a company.

A few of those possible business ideas could have a lot of growth potential for the long-term and are still priced attractively.

These are two to consider:

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is an ASX e-commerce growth share. It operates a beauty website that sells a broad and diverse portfolio of approximately 10,800 products from 260 brands.

The business generated a lot of growth in FY21, with revenue increasing 48% to $179.3 million, gross profit growing 54% to $59.3 million and earnings before interest, tax, depreciation and amortisation (EBITDA) going up 53% to $7.6 million.

Management point to a number of customer-focused statistics that show the business’ progress. In FY21, it increased its number of active customers by 39% to 818,000. Returning customer growth was 64% year on year. Annual revenue per active customer increased 7% to $219, driven by customer retention and increasing average order value. Adore Beauty also noted it has “best in class” levels of customer satisfaction with a Google Review rating of 4.9 out of 5. These customers are profitable within the first year.

Adore Beauty believes that its continued strong returning customer rates and growth in new customers provides strong momentum to drive continued growth in FY22 and beyond. The ASX growth share said it’s well positioned to capture market share in its large and growing market, whilst benefiting from structural tailwinds.

It’s going to invest heavily in the shorter-term to continue its growth and then benefit from scale benefits in the future. The start of FY22 revenue saw an increase of 26% year on year.

The broker Morgan Stanley currently rates Adore Beauty as a buy, with a price target of $6. It believes it can generate strong growth in the coming years.

Temple & Webster Group Ltd (ASX: TPW)

This ASX growth share is another e-commerce business that is rapidly growing and plans for a lot more.

Temple & Webster has over 200,000 products for sale from hundreds from suppliers. It operates with a drop-shipping model where products are sent directly to customers by suppliers, which helps with faster delivery times and reduces the need to hold inventory, allowing for a larger product range. It’s a capital light model. Indeed, the working capital model is negative, with 74% of sales having no inventory risk.

The company also has private label range which is sourced by Temple & Webster from overseas suppliers. Private label sales increased from 19% of sales in FY20 to 26% in FY21. This comes with improved margins.

Management point to the fact that it’s already profitable and it has a large addressable market (worth $16 billion overall, including both online and offline). There is an accelerating rate of online adoption. In FY21, revenue rose 85% to $326.3 million and EBITDA soared 141% to $20.5 million. The balance sheet is debt free and it had $97.5 million of cash at the end of the 2021 financial year.

The ASX growth share is investing in a number of areas to improve the customer experience. For example, it is merging the online and offline experience through augmented reality. This is where Temple & Webster makes it possible to see a product in a shopper’s room. Management believe that removing barriers in the online shopping journey which will drive conversion and customer engagement.

In FY22 to 27 August 2021, revenue increased by 49% year on year. Temple & Webster is going to continue to invest heavily to grow its market position with an eventual goal of becoming the largest retailer for furniture and homewares in its home market.

The post 2 top ASX growth shares that might be worth buying appeared first on The Motley Fool Australia.

More reading

• 2 growing small cap ASX shares for your watchlist
• 2 excellent ASX growth shares analysts rate as buys
• 2 ASX shares that may be worth researching this weekend
• 3 rapidly growing ASX tech shares to buy
• Why Zip (ASX:Z1P) and these growth shares could be buys

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 shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3m7JHRK

The AMP Ltd (ASX: AMP) share price is in a rich vein of form right now. Shares in the Aussie wealth manager have climbed 5.91% higher in the last week to 98.5 cents per share.

That’s still a long way shy of the group’s 52-week high of $1.77 per share, but it’s a start. After all, the financials group recently endured 9 straight trading days without climbing higher.

Things may have turned a corner, in the short term at least, if the last week is anything to go by. So, what’s been driving the embattled wealth group’s valuation higher in recent days?

Why the AMP share price has been climbing

Interestingly, there have been no new announcements from the Aussie wealth manager in recent days. That hasn’t stopped investors snapping up AMP shares just above the group’s 52-week low.

The past week also coincides nicely with the market panic over Evergrande Group. Markets were smashed on Monday last week as investors feared a broad market collapse. However, things have been looking up since then.

The S&P/ASX 200 Index (ASX: XJO) has added 1.9% in the past 5 days and closed at 7,384.2 points on Monday. AMP has been outperforming the broad market index with its almost 6% gains over the same period.

AMP has certainly made progress in recent months. The embattled wealth manager delivered strong investment earnings in the first half of 2021 while the group’s remediation program has now wrapped up.

There was also the 57% jump in net profit after tax to $181 million during the group’s August half-year results with Australian wealth management assets under management climbing 8% to $121 billion.

The AMP board declined to pay an interim dividend and the AMP share price has been languishing in recent weeks. However, shares in the wealth manager are showing signs of positive momentum after climbing higher over the past week.

The post The AMP share price is up 6% in a week, here’s why appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts today
• AMP (ASX:AMP) share price on watch amid latest legal battle
• These 3 ASX 200 shares are topping trading volumes today
• AMP (ASX:AMP) share price climbs 6% in first upwards move in 2 weeks
• How has the AMP (ASX:AMP) share price been performing since reporting results?

Motley Fool contributor Ken Hall 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/3uh9HOk